8-K/A
0001672619 0001672619 2022-11-10 2022-11-10

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K/A

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 10, 2022

 

 

IMARA INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

Delaware   001-39247   81-1523849

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

1309 Beacon Street, Suite 300, Office 341

Brookline, MA

    02446
(Address of Principal Executive Offices)     (Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 206-2020

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.001 per share   IMRA   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

 


Explanatory Note

On November 10, 2022, Imara Inc., a Delaware corporation (the “Company”) filed a Current Report on Form 8-K (the “Initial Report”) with the Securities and Exchange Commission to report, among other things, the completion of the sale of tovinontrine (IMR-687) and all other assets of the Company related to its PDE9 program (the “Asset Sale”) pursuant to the Asset Purchase Agreement between the Company and Cardurion Pharmaceuticals, Inc. dated as of September 6, 2022.

As disclosed in the Initial Report, this Current Report on Form 8-K/A is being filed to amend the Initial Report to include the pro forma financial information required by Item 9.01(b) of Form 8-K. No other changes are being made to the Initial Report.

The pro forma financial information included in this Current Report on Form 8-K/A has been presented for informational purposes only and is not necessarily indicative of the pro forma financial position or results of operations that would have been realized had the Asset Sale occurred as of the dates indicated, nor is it meant to be indicative of any anticipated financial position or future results of operations that the Company will experience after the Asset Sale.

This Current Report on Form 8-K/A should be read in conjunction with the Initial Report, which provides a more complete description of the Asset Sale.

 

Item 9.01

Financial Statements and Exhibits.

(b) The unaudited pro forma condensed consolidated financial information of the Company as of and for the nine months ended September 30, 2022, and the unaudited pro forma condensed consolidated financial information of the Company for the fiscal year ended December 31, 2021 as required by Item 9.01(b) are attached as Exhibit 99.1 to this Current Report on Form 8-K/A and incorporated herein by reference.

(d) Exhibits

 

Exhibit
No.

  

Description

99.1    Unaudited Pro Forma Condensed Consolidated Financial Information.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    IMARA INC.
Date: November 15, 2022     By:  

/s/ Rahul D. Ballal

    Name:   Rahul D. Ballal, Ph.D.
    Title:   President and Chief Executive Officer
EX-99.1

Exhibit 99.1

UNAUDITED PRO FORMA FINANCIAL INFORMATION

On November 10, 2022 (the “Closing Date”), IMARA Inc. (the “Company”) completed the previously announced transaction providing for the sale of tovinontrine (IMR-687) and all other assets of the Company related to its PDE9 program (the “Asset Sale”) to Cardurion Pharmaceuticals, Inc. (“Cardurion”) pursuant to the Asset Purchase Agreement (the “Asset Purchase Agreement”) between the Company and Cardurion dated as of September 6, 2022. In addition to $250,000 previously paid by Cardurion to the Company upon execution of a non-binding term sheet, the aggregate purchase price consisted of an upfront cash payment of $34,750,000 upon closing of the Asset Sale, a $10,000,000 potential future payment that may become payable if Cardurion achieves a proof of concept milestone or other specified clinical milestones and a $50,000,000 potential future payment that may become payable if Cardurion achieves specified regulatory and/or commercial milestone events, in each case as described in the Asset Purchase Agreement and subject to the terms of the Asset Purchase Agreement. The Company will not have any further direct involvement in the development and commercialization of the technology that is subject to the Asset Purchase Agreement. Among other customary closing conditions, the Asset Purchase Agreement was contingent upon obtaining stockholder approval of the arrangement, which occurred on November 10, 2022.

The following unaudited pro forma consolidated financial statements are intended to show how the Asset Sale might have affected the historical financial statements of the Company if the Asset Sale had been completed at an earlier time as indicated therein, and such unaudited pro forma consolidated financial statements are derived from, and should be read in conjunction with, the Company’s historical condensed consolidated financial statements and notes thereto, as presented in the Company’s Quarterly Report on Form 10-Q for the nine months ended September 30, 2022 filed with the Securities and Exchange Commission (“SEC”) on October 25, 2022 (the “Form 10-Q”) and the Company’s historical financial statements and notes thereto, as presented in the Company’s Annual Report on Form 10-K filed for the fiscal year ended December 31, 2021 filed with the SEC on March 15, 2022 (the “Form 10-K”).

The unaudited pro forma consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2022 assumes the transaction had occurred on September 30, 2022. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2022 and the year ended December 31, 2021 give effect to the transaction as if it had occurred as of January 1, 2021.

In addition, Regulation S-X permits registrants to reflect adjustments that depict synergies and dis-synergies of the acquisitions and dispositions for which pro forma effect is being given in the Company’s disclosures as management adjustments. The Company has determined not to disclose such adjustments because it does not believe that presentation of such adjustments would enhance an understanding of the pro forma effects of the Asset Sale.

The accounting adjustments to reflect the Asset Sale in the unaudited pro forma consolidated financial statements include:

 

   

the sale of the assets related to the PDE9 program (including tovinontrine) pursuant to the Asset Purchase Agreement; and

 

   

receipt of the cash proceeds that were payable on the Closing Date in connection with the Asset Sale.

The effects of recording certain adjustments associated with contingent consideration contemplated by the Asset Sale have been excluded because of the uncertainty of payments which were not considered probable of occurring at the time of the Closing Date.

The unaudited pro forma consolidated financial statement information is presented for informational purposes only and is based upon estimates by the Company’s management, which are based upon available information and certain assumptions that the Company’s management believes are reasonable as of the date of this filing. The unaudited pro forma consolidated financial statements are not intended to be indicative of the actual financial position or results of operations that would have been achieved had the Asset Sale been consummated as of the periods indicated, nor does it purport to indicate results which may be attained in the future. Actual amounts could differ materially from these estimates.

The unaudited pro forma consolidated balance sheet as of September 30, 2022 and the unaudited pro forma consolidated statements of operations for nine months ended September 30, 2022 and the year ended December 31, 2021 should be read in conjunction with the notes thereto.


Imara Inc.

Unaudited Pro Forma Condensed Consolidated Balance Sheet

As of September 30, 2022

(in thousands, except share and per share data)

 

            Transaction Accounting Adjustments                
     Historical Imara      Operations of
Sold Assets
            Pro Forma
Adjustments
            Pro Forma
Imara
 
     (a)      (b)             (c)            

 

 

Assets

                 

Current assets:

                 

Cash and cash equivalents

   $ 49,491      $ —           $ 32,750        (e    $ 82,241  

Short-term investments

     6,813        —             —             6,813  

Prepaid expenses and other current assets

     2,800        (566      (d      —             2,234  
  

 

 

    

 

 

       

 

 

       

 

 

 

Total current assets

     59,104        (566         32,750           91,288  
  

 

 

    

 

 

       

 

 

       

 

 

 

Total assets

   $ 59,104      $ (566       $ 32,750         $ 91,288  
  

 

 

    

 

 

       

 

 

       

 

 

 

Liabilities and stockholder’s equity

                 

Current liabilities:

                 

Accounts payable

   $ 767      $ —           $ —           $ 767  

Accrued expenses and other current liabilities

     1,051        —             —             1,051  
  

 

 

    

 

 

       

 

 

       

 

 

 

Total current liabilities

     1,818        —             —             1,818  
  

 

 

    

 

 

       

 

 

       

 

 

 

Total liabilities

     1,818        —             —             1,818  

Common stock, $0.001 par value per share; 200,000,000 shares authorized as of September 30, 2022; 26,287,264 shares issued and outstanding as of September 30, 2022

     27        —             —             27  

Additional paid-in capital

     235,457        —             —             235,457  

Accumulated other comprehensive loss

     (4      —             —             (4

Accumulated deficit

     (178,194      (566         32,750           (146,010
  

 

 

    

 

 

       

 

 

       

 

 

 

Total stockholders’ equity

     57,286        (566         32,750           89,470  
  

 

 

    

 

 

       

 

 

       

 

 

 

Total liabilities and stockholders’ equity

   $ 59,104      $ (566       $ 32,750         $ 91,288  
  

 

 

    

 

 

       

 

 

       

 

 

 

See accompanying notes to the pro forma consolidated financial statements


Imara Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Nine Months Ended September 30, 2022

(in thousands, except share and per share data)

 

           Transaction Accounting Adjustments         
     Historical Imara     Operations of
Sold Assets
          Pro Forma
Adjustments
     Pro Forma
Imara
 
     (a)     (b)           (c)     

 

 

Operating expenses:

           

Research and development

   $ 18,760     $ (17,692     (d   $ —        $ 1,068  

General and administrative

     12,253       —           —          12,253  
  

 

 

   

 

 

     

 

 

    

 

 

 

Total operating expenses

     31,013       (17,692       —          13,321  
  

 

 

   

 

 

     

 

 

    

 

 

 

Loss from operations

     (31,013     17,692         —          (13,321

Total other income, net:

           

Other expense

     (114     —           —          (114

Interest income

     430       —           —          430  
  

 

 

   

 

 

     

 

 

    

 

 

 

Total other income, net

     316       —           —          316  
  

 

 

   

 

 

     

 

 

    

 

 

 

Net loss

   $ (30,697   $ 17,692       $ —        $ (13,005
  

 

 

   

 

 

     

 

 

    

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

   $ (1.17   $ —         $ —        $ (0.49
  

 

 

   

 

 

     

 

 

    

 

 

 

Weighted-average common shares outstanding, basic and diluted

     26,287,264       —           —          26,287,264  
  

 

 

   

 

 

     

 

 

    

 

 

 

See accompanying notes to the pro forma consolidated financial statements


Imara Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2021

(in thousands, except share and per share data)

 

           Transaction Accounting Adjustments               
     Historical Imara     Operations of
Sold Assets
          Pro Forma
Adjustments
           Pro Forma
Imara
 
     (a)     (b)           (c)           

 

 

Operating expenses:

             

Research and development

   $ 38,442     $ (36,603     (d   $ —          $ 1,839  

General and administrative

     13,000       —           —            13,000  
  

 

 

   

 

 

     

 

 

      

 

 

 

Total operating expenses

     51,442       (36,603       —            14,839  
  

 

 

   

 

 

     

 

 

      

 

 

 

Loss from operations

     (51,442     36,603         —            (14,839

Total other income, net:

             

Other expense

     (175     —           —            (175

Interest income

     233       —           —            233  

Sale of IPR&D asset

     —         —           32,750        (e     32,750  
  

 

 

   

 

 

     

 

 

      

 

 

 

Total other income, net

     58       —           32,750          32,808  
  

 

 

   

 

 

     

 

 

      

 

 

 

Net (loss) income

   $ (51,384   $ 36,603       $ 32,750        $ 17,969  
  

 

 

   

 

 

     

 

 

      

 

 

 

common stockholders, basic and diluted

   $ (2.37   $ —         $ 32,750        $ 0.83  
  

 

 

   

 

 

     

 

 

      

 

 

 

Weighted-average common shares outstanding, basic and diluted

     21,661,450       —           —            21,661,450  
  

 

 

   

 

 

     

 

 

      

 

 

 

See accompanying notes to the pro forma consolidated financial statements


Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

The unaudited pro forma condensed consolidated financial statements reflect the following notes and adjustments:

 

  (a)

Reflects the condensed consolidated balance sheet as of September 30, 2022 and condensed consolidated statement of operations for the nine months ended September 30, 2022 in the Form 10-Q and the consolidated statement of operations for the year ended December 31, 2021 in the Form 10-K.

 

  (b)

Reflects the consummation of the Asset Sale in accordance with the terms of the Asset Purchase Agreement.

 

  (c)

Reflects the additional transaction accounting adjustments which show how the Asset Sale might have affected the Company’s historical financial statements if the sale had been completed at an earlier time.

 

  (d)

Adjustments represent the elimination of assets to the Asset Sale and the disposed operations. Note that liabilities are not eliminated as liabilities incurred by the Company prior to the Closing Date are excluded form the transaction and not transferred to Cardurion, per the Asset Purchase Agreement.

 

  (e)

To record the net cash proceeds from the Asset Sale paid on the Closing Date of $34.8 million, less estimated closing costs of $2.0 million that are likely to be incurred as part of the consummation of the Asset Sale.