10/07/2024 | Press release | Distributed by Public on 10/07/2024 14:06
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material under §240.14a-12
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No fee required.
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Fee paid previously with preliminary materials.
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11
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(1)
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To approve, in accordance with Nasdaq Listing Rule 5635(d), the issuance of shares of the Company's common stock upon conversion of the Company's Series A Non-Voting Convertible Preferred Stock, par value $0.001 per share, issued in September 2024;
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(2)
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To approve an adjournment of the Special Meeting, if necessary or appropriate, to solicit additional proxies; and
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(3)
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To transact any other matters that may properly come before the Special Meeting or any adjournments or postponements thereof.
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By Order of the Board of Directors,
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/s/ Lawrence Klein
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Lawrence Klein, Ph.D.
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President, Chief Executive Officer and Director
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QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND VOTING
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1
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PROPOSAL 1: APPROVAL OF CONVERSION OF SERIES A PREFERRED STOCK
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5
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PROPOSAL 2: APPROVAL OF AN ADJOURNMENT OF THE SPECIAL MEETING, IF NECESSARY OR APPROPRIATE, TO SOLICIT ADDITIONAL PROXIES
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7
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CERTAIN INFORMATION ABOUT OUR COMMON STOCK
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OTHER MATTERS
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10
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(1)
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To approve, in accordance with Nasdaq Listing Rule 5635(d), the issuance of shares of the Company's common stock upon conversion of the Company's Series A Non-Voting Convertible Preferred Stock, par value $0.001 per share ("Series A Preferred Stock"), issued in September 2024 ("Proposal 1"); and
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(2)
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To approve an adjournment of the Special Meeting, if necessary or appropriate, to solicit additional proxies ("Proposal 2").
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(1)
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You may complete and submit a new proxy card, but it must bear a later date than the original proxy card;
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(2)
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You may submit new proxy instructions via telephone or the Internet;
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(3)
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You may send a timely written notice that you are revoking your proxy to our Corporate Secretary at the address set forth on the first page of this Proxy Statement; or
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(4)
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You may vote by attending the Special Meeting virtually. However, your virtual attendance at the Special Meeting will not, by itself, revoke your proxy.
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each person, or group of affiliated persons, who is known by us to be the beneficial owner of more than 5% of our common stock;
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each of our directors;
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each of our named executive officers; and
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all of our current directors and executive officers as a group.
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Number of
Shares
Beneficially
Owned
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Percentage
of Shares
Outstanding
Beneficially
Owned
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Name of Beneficial Owner
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Entities affiliated with Fairmount Funds Management LLC(1)
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Entities affiliated with Venrock Healthcare Capital Partners(2)
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FMR LLC(3)
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Entities affiliated with RTW Investments, LP(4)
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Named Executive Officers and Directors:
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Lawrence Klein(5)
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Arjun Agarwal
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Joana Goncalves
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Paul Quinlan
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Michael R. Bristow(6)
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Thomas A. Keuer(7)
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C. Jeffrey Dekker(8)
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Cameron Turtle(9)
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Samarth Kulkarni
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Peter Harwin(1)
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Carl Dambkowski
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Kristine Ball
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All executive officers and directors as a group (9 persons)(10)
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*
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Less than 1%.
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(1)
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Consists of (i) (A) shares of common stock, (B) shares of common stock issuable upon the exercise of pre-funded warrants and (C) shares of common stock issuable upon conversion of shares of Series B Preferred Stock held by
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(2)
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Consists of (i) shares of common stock and shares of common stock issuable upon the exercise of pre-funded warrants held by Venrock Healthcare Capital Partners EG, L.P. ("VHCPEG"), (ii) shares of common stock and shares of common stock issuable upon the exercise of pre-funded warrants held by Venrock Healthcare Capital Partners III, L.P. ("VHCP3"), and (iii) shares of common stock and shares of common stock issuable upon the exercise of pre-funded warrants held by VHCP Co-Investment Holdings III, LLC ("VHCPCo3"). Excludes (i) , and shares of common stock issuable upon the exercise of the pre-funded warrants held by VHCPEG, VHCP3 and VHCPCo3, respectively, and (ii) , and shares of common stock issuable upon the conversion of Series A Preferred Stock held by VHCPEG, VHCP3 and VHCPCo3, respectively. The pre-funded warrants and Series A Preferred Stock are subject to a beneficial ownership limitation of 9.99%, which such limitations restrict Venrock Healthcare Capital Partners and its affiliates from exercising that portion of the warrants or Series A Preferred Stock that would result in Venrock Healthcare Capital Partners and its affiliates owning, after exercise, a number of shares of common stock in excess of the applicable ownership limitation. VHCP Management III, LLC ("VHCPM3") is the sole general partner of VHCP3 and the sole manager of VHCPCo3. VHCP Management EG, LLC ("VHCPM EG") is the sole general partner of VHCPEG. As voting members of VHCPM3 and VHCPM EG, Dr. Bong Koh and Nimish Shah may be deemed beneficial owners of any securities beneficially owned by VHCPM3 and VHCPM EG. The principal business address of each of these persons and entities is 7 Bryant Park, 23rd Floor, New York, NY 10018.
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(3)
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These funds and accounts are managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman and the Chief Executive Officer of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders' voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders' voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. The principal business address of each of these persons and entities is 245 Summer Street, Boston, MA 02210.
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(4)
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Consists of shares of common stock held in the aggregate by RTW Master Fund, Ltd. ("RTW Master Fund"), RTW Innovation Master Fund, Ltd. ("RTW Innovation Master Fund"), and RTW Biotech Opportunities Operating Ltd. ("RTW Biotech" and together with RTW Master Fund and RTW Innovation Fund, the "RTW Funds"). Excludes shares of common stock issuable upon the conversion of Series A Preferred Stock held in the aggregate by the RTW Funds. The Series A Preferred Stock is subject to a beneficial ownership limitation of 9.99%, which such limitations restrict the RTW Funds and its affiliates from exercising that portion of the Series A Preferred Stock that would result in the RTW Funds and its affiliates owning, after exercise, a number of shares of common stock in excess of the applicable ownership limitation. RTW Investments, LP ("RTW"), in its capacity as the investment manager of the RTW Funds, has the power to vote and the power to direct the disposition of the shares held by the RTW Funds. Accordingly, RTW may be deemed to be the beneficial owner of such securities. Roderick Wong, M.D., as the Managing Partner of RTW, has the power to direct the vote and disposition of the securities held by RTW. Dr. Wong disclaims beneficial ownership of the shares held by the RTW Funds, except to the extent of his pecuniary interest therein. The principal business address of RTW Investments, LP is 40 10th Avenue, Floor 7, New York, NY 10014, and the address of Dr. Wong and each of the RTW Funds is c/o RTW Investments, LP, 40 10th Avenue, Floor 7, New York, NY 10014.
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(5)
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Includes shares of restricted voting common stock.
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(6)
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Includes (i) shares owned by Investocor Trust, of which Dr. Bristow is the sole trustee and (ii) shares owned by NFS as Custodian for Michael Bristow's IRA. Dr. Bristow and ARCA mutually agreed to conclude Dr. Bristow's employment effective April 3, 2024.
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(7)
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Mr. Keuer resigned as named executive officer at the Merger Closing and his last day of employment was September 1, 2024, which termination was considered to be without "cause" related to a change in control for purposes of his employment agreement with ARCA.
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(8)
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Mr. Dekker resigned as named executive officer at the Merger Closing and his last day of employment was September 1, 2024, which termination was considered to be without "cause" related to a change in control for purposes of his employment agreement with ARCA.
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(9)
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Includes shares of restricted voting common stock held by the Turtle Family Trust, for which Mr. Turtle serves as Trustee.
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(10)
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See notes (1), (5) and (9) above.
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