EX-99.1 2 eh230420932_ex01.htm EXHIBIT 1

 

EXHIBIT 1

 

Foresite Capital Fund IV, L.P.

Foresite Capital Fund V, L.P.

Foresite Capital Opportunity Fund V, L.P.

900 Larkspur Landing Circle, Suite 150
Larkspur, CA 94939

OrbiMed Private Investments VII, LP

OrbiMed Private Investments VIII, LP

OrbiMed Asia Partners IV, L.P.

OrbiMed Genesis Master Fund, L.P.

OrbiMed Partners Master Fund Limited

601 Lexington Avenue, 54th Floor

New York, NY 10022

 

 

 

November 13, 2023

 

Board of Directors

Kinnate Biopharma Inc.

103 Montgomery Street, Suite 150

The Presidio of San Francisco

San Francisco, California 94129

 

Re:Non-Binding Expression of Interest

 

Dear Members of the Board of Directors:

On behalf of (i) Foresite Capital Fund IV, L.P., Foresite Capital Fund V, L.P., Foresite Capital Opportunity Fund V, L.P. and their affiliated investment funds and persons (collectively, “Foresite”) and (ii) OrbiMed Private Investments VII, LP, OrbiMed Private Investments VIII, LP, OrbiMed Asia Partners IV, L.P., OrbiMed Genesis Master Fund, L.P., OrbiMed Partners Master Fund Limited and their affiliated investment funds and persons (collectively, “OrbiMed” and together with Foresite “we” or “our”), we are writing to outline our intent to explore and evaluate a potential acquisition of all of the outstanding shares of common stock (the “Common Shares”) of Kinnate Biopharma Inc. (the “Company”) not already owned by Foresite or OrbiMed in a going-private transaction (a “Transaction”). As you know, Foresite currently beneficially owns approximately 29.2% of the issued and outstanding Common Shares and OrbiMed currently beneficially owns approximately 17.0% of the issued and outstanding Common Shares.

We believe that a Transaction can offer the Company’s shareholders a highly attractive opportunity to de-risk their investment by obtaining immediate liquidity and certainty of value, which can provide superior value to the Company’s shareholders. We wish to emphasize that, in our capacity as stockholders of the Company, we are only interested in acquiring the shares of the Company we do not currently own, and accordingly we have no interest in a sale of our holdings in the Company or in participating in an alternative change of control transaction involving the Company. In our capacity as a stockholder of the Company, we would not vote in favor of any alternative sale, merger or similar transaction involving the Company.

We expect to engage in communications and discussions with the Company, members of the Board of Directors (the “Board”), the Special Committee (as defined below) and management of the Company, other current or prospective shareholders of the Company, potential co-investors

   

 

and financing sources (including current or potential investors in funds managed by Foresite or OrbiMed), investment and financing professionals, industry analysts and other knowledgeable industry or market observers and participants, and other interested parties regarding a potential transaction and/or the matters set forth in this letter (this “Letter”), and may exchange information with such persons pursuant to appropriate confidentiality or similar agreements.

We recognize that the Board will evaluate any proposal independently before it can make its determination whether to endorse the proposal. In addition, we expect that a special committee composed of independent and disinterested directors of the Company appointed by the Board (a “Special Committee”) will consider any and all of our proposals carefully and make a recommendation to the Board; we expect that the Special Committee will retain legal and financial advisors for assistance. Moreover, we will condition the consummation of any Transaction involving us upon the non-waivable condition requiring approval of the stockholders holding at least a majority of all the issued and outstanding Common Shares not held by us or our affiliates. We will not move forward with any Transaction unless it is approved by such Special Committee (with the assistance of its legal and financial advisors) and a majority of such unaffiliated stockholders. If the Special Committee does not recommend or the unaffiliated public stockholders of the Company do not approve a proposed transaction with us, such determination would not adversely affect our future relationship with the Company.

This Letter constitutes an expression of interest only, and we reserve the right to withdraw or modify it in any manner. This Letter does not include or constitute a binding offer to acquire the Company or any securities or assets of the Company, or a proposal of definitive terms for any transaction. Please be advised that we intend to promptly file Schedule 13D amendments, including a copy of this Letter, with the Securities and Exchange Commission.

* * * * *

   

 

 

  Very truly yours,  
     
  FORESITE CAPITAL FUND IV, L.P.  
     
  By: Foresite Capital Management V, LLC  
  Its: General Partner  
     
  By: /s/ Dennis Ryan  
  Name: Dennis Ryan  
  Title: Attorney-In-Fact  

 

 

  FORESITE CAPITAL FUND V, L.P.  
     
  By: Foresite Capital Management V, LLC  
  Its: General Partner  
     
  By: /s/ Dennis Ryan  
  Name: Dennis Ryan  
  Title: Attorney-In-Fact  

 

 

  FORESITE CAPITAL OPPORTUNITY FUND V, L.P.  
     
  By: Foresite Capital Opportunity Management V, LLC  
  Its: General Partner  
     
  By: /s/ Dennis Ryan  
  Name: Dennis Ryan  
  Title: Attorney-In-Fact  

 

   

 

 

  OrbiMed Private Investments VII, LP  
             
  By: OrbiMed Capital GP VII LLC,  
    its General Partner  
             
  By: OrbiMed Advisors LLC,  
    its Managing Member  
             
             
      By: /s/ Carl L. Gordon  
      Name: Carl L. Gordon  
        Title: Member  

 

 

  OrbiMed Private Investments VIII, LP  
             
  By: OrbiMed Capital GP VIII LLC,  
    its General Partner  
             
  By: OrbiMed Advisors LLC,  
    its Managing Member  
             
             
      By: /s/ Carl L. Gordon  
      Name: Carl L. Gordon  
        Title: Member  

 

 

  OrbiMed Asia Partners IV, L.P.  
             
  By: OrbiMed Asia GP IV, L.P.,  
    its General Partner  
             
  By: OrbiMed Advisors IV Limited,  
    its General Partner  
             
             
      By: /s/ Carl L. Gordon  
      Name: Carl L. Gordon  
        Title: Director  

 

   

 

 

  OrbiMed Genesis Master Fund, L.P.  
             
  By: OrbiMed Genesis GP LLC,  
    its General Partner  
             
  By: OrbiMed Advisors LLC,  
    its Managing Member  
             
             
      By: /s/ Carl L. Gordon  
      Name: Carl L. Gordon  
        Title: Member  

 

 

  OrbiMed Partners Master Fund Limited  
             
  By: OrbiMed Capital LLC, solely in its  
    capacity as Investment Advisor  
             
  By: /s/ Carl L. Gordon  
      Name: Carl L. Gordon  
      Title: Member