President and CEO Tipirneni Praveen P. closing all direct ownership in the company (SEC Form 4)
$MORF
Biotechnology: Pharmaceutical Preparations
Health Care
| FORM 4 |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940 |
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). | ||||||||||||||||
| Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10. | |||||||||||||||||
1. Name and Address of Reporting Person*
(Street)
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2. Issuer Name and Ticker or Trading Symbol
Morphic Holding, Inc. [ MORF ] |
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
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3. Date of Earliest Transaction
(Month/Day/Year) 08/16/2024 | ||||||||||||||||||||||||||
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4. If Amendment, Date of Original Filed
(Month/Day/Year) |
6. Individual or Joint/Group Filing (Check Applicable Line)
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| Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned | ||||||||||
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| 1. Title of Security (Instr. 3) | 2. Transaction Date (Month/Day/Year) | 2A. Deemed Execution Date, if any (Month/Day/Year) | 3. Transaction Code (Instr. 8) | 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) | 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) | 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) | 7. Nature of Indirect Beneficial Ownership (Instr. 4) | |||
| Code | V | Amount | (A) or (D) | Price | ||||||
| Common Stock | 08/16/2024 | U | 42,460 | D | (1)(2) | 0 | D | |||
| Common Stock | 08/16/2024 | U | 614,474 | D | (1)(2) | 0 | I | By The Praveen P. Tipirneni Irrevocable Trust of 2019(3) | ||
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) | |||||||||||||||
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| 1. Title of Derivative Security (Instr. 3) | 2. Conversion or Exercise Price of Derivative Security | 3. Transaction Date (Month/Day/Year) | 3A. Deemed Execution Date, if any (Month/Day/Year) | 4. Transaction Code (Instr. 8) | 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) | 6. Date Exercisable and Expiration Date (Month/Day/Year) | 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) | 8. Price of Derivative Security (Instr. 5) | 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) | 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) | 11. Nature of Indirect Beneficial Ownership (Instr. 4) | ||||
| Code | V | (A) | (D) | Date Exercisable | Expiration Date | Title | Amount or Number of Shares | ||||||||
| Stock Option (Right to Buy) | $4.32 | 08/16/2024 | D | 339,561 | (4) | 12/14/2028 | Common Stock | 339,561 | (5) | 0 | D | ||||
| Stock Option (Right to Buy) | $15.42 | 08/16/2024 | D | 273,350 | (4) | 02/17/2030 | Common Stock | 273,350 | (5) | 0 | D | ||||
| Stock Option (Right to Buy) | $30.19 | 08/16/2024 | D | 205,000 | (6) | 01/14/2031 | Common Stock | 205,000 | (5) | 0 | D | ||||
| Stock Option (Right to Buy) | $44.75 | 08/16/2024 | D | 224,016 | (7) | 01/13/2032 | Common Stock | 224,016 | (5) | 0 | D | ||||
| Stock Option (Right to Buy) | $31.72 | 08/16/2024 | D | 177,024 | (8) | 01/12/2033 | Common Stock | 177,024 | (5) | 0 | D | ||||
| Stock Option (Right to Buy) | $27.79 | 08/16/2024 | D | 206,400 | (9) | 01/11/2034 | Common Stock | 206,400 | (5) | 0 | D | ||||
| Restricted Stock Unit | (10) | 08/16/2024 | D | 88,500 | (11) | (11) | Common Stock | 88,500 | (12) | 0 | D | ||||
| Restricted Stock Unit | (10) | 08/16/2024 | D | 25,000 | (13) | (13) | Common Stock | 25,000 | (12) | 0 | D | ||||
| Restricted Stock Unit | (10) | 08/16/2024 | D | 136,800 | (14) | (14) | Common Stock | 136,800 | (12) | 0 | D | ||||
| Explanation of Responses: |
| 1. On July 7, 2024, Morphic Holding, Inc., a Delaware corporation (the "Issuer" or the "Company"), entered into an Agreement and Plan of Merger (the "Merger Agreement") with Eli Lilly and Company, an Indiana corporation (the "Parent"), and Rainier Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of the Parent ("Merger Sub"). Pursuant to the Merger Agreement, the Merger Sub merged with and into the Company (the "Merger") with the Company surviving the Merger as a wholly owned subsidiary of the Parent. |
| 2. (Continued from Footnote 1) Upon the closing (the "Closing") of the Merger on August 16, 2024, each share of the Company's Common Stock, par value $0.0001 per share ("Common Stock"), was either (x) purchased by Purchaser for $57.00 per share (the "Offer Price"), without interest, less any applicable tax withholding or (y) automatically converted into the right to receive the Offer Price in cash without interest, less any applicable tax withholding. |
| 3. These securities are held of record by Sonali N. Shah, Trustee of The Praveen P. Tipirneni Irrevocable Trust of 2019. The reporting person disclaims beneficial ownership of the shares except to the extent of his pecuniary interest therein. |
| 4. The Company Stock Option ("Option") is fully vested. |
| 5. Pursuant to the Merger Agreement, each Option that was outstanding but not vested as of immediately prior to the Closing (the "Unvested Option") became fully vested and exercisable (the "Vested Option"). Each Vested Option was automatically cancelled and converted into the right to receive an amount in cash without interest, less any applicable tax withholding, equal to the product obtained by multiplying (i) the excess, if any, of the Offer Price over the exercise price per share of Common Stock underlying such Option by (ii) the number of shares of Common Stock underlying such Option. If the exercise price per share of Common Stock of the underlying Option was equal to or greater than the Offer Price, such Option was cancelled without any cash payment or other consideration being made in respect thereof. |
| 6. The Option vests as to 2.0833% of the total shares monthly, beginning February 15, 2021, with 100% of the total shares vested and exercisable on January 15, 2025, subject to the reporting person's provision of service to the issuer on each vesting date. |
| 7. The Option vests as to 2.0833% of the total shares monthly, beginning February 14, 2022, with 100% of the total shares vested and exercisable on January 14, 2026, subject to the reporting person's provision of service to the issuer on each vesting date. |
| 8. The Option vests as to 2.0833% of the total shares monthly, beginning February 13, 2023, with 100% of the total shares vested and exercisable on January 13, 2027, subject to the reporting person's provision of service to the issuer on each vesting date. |
| 9. The Option vests as to 2.0833% of the total shares monthly, beginning February 12, 2024, with 100% of the total shares vested and exercisable on January 12, 2028, subject to the reporting person's provision of service to the issuer on each vesting date. |
| 10. Each Company Restricted Stock Unit ("RSUs") represents a contingent right to receive one (1) share of Common Stock upon settlement for no consideration. |
| 11. The RSUs vest as to 25% of the total shares on each of January 13, 2024, January 13, 2025, January 13, 2026 and January 13, 2027, subject to the reporting person's provision of service to the Issuer on each vesting date. |
| 12. Pursuant to the Merger Agreement, each RSU that was outstanding but not vested as of immediately prior to the Closing (the "Unvested RSU"), became immediately vested in full (the "Vested RSU"). Each Vested RSU was automatically cancelled and converted into the right to receive an amount in cash, without interest, less any applicable tax withholding, equal to the product obtained by multiplying (i) the Offer Price by (ii) the number of shares of Common Stock underlying such RSU. |
| 13. The RSUs vest as to 25% of the total shares on each of January 14, 2023, January 14, 2024, January 14, 2025 and January 14, 2026, subject to the reporting person's provision of service to the Issuer on each vesting date. |
| 14. The RSUs vest as to 25% of the total shares on each of January 12, 2025, January 12, 2026, January 12, 2027 and January 12, 2028, subject to the reporting person's provision of service to the Issuer on each vesting date. |
| /s/ Robert Farrell, Attorney-in-Fact for Praveen P. Tipirneni | 08/20/2024 | |
| ** Signature of Reporting Person | Date | |
| Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. | ||
| * If the form is filed by more than one reporting person, see Instruction 4 (b)(v). | ||
| ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). | ||
| Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure. | ||
| Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number. | ||