Market Newsdesk

Katapult to Become a Publicly Traded Company Through Merger With FinServ Acquisition Corp.

Leading e-commerce focused point-of-sale platform for nonprime consumers

Transaction values Katapult at a pro forma enterprise value of approximately $1 billion

Transaction includes a $150 million fully committed PIPE from investors led by Tiger Global Management & Neuberger Berman Funds

Joint investor conference call and presentation on December 18, 2020 at 9:00am ET

NEW YORK–(BUSINESS WIRE)–
Katapult Holding, Inc. (“Katapult”), an e-commerce focused financial technology company, and FinServ Acquisition Corp. (NASDAQ: FSRV) (“FinServ”), a special purpose acquisition company, today announced that they have entered into a definitive merger agreement. Upon closing of the transaction, the combined company (the “Company”) will operate as Katapult and plans to trade on Nasdaq under the new symbol “KPLT”. The transaction reflects an implied pro forma combined enterprise value for the Company of approximately $1 billion.

Katapult is a leading provider of e-commerce point-of-sale (“POS”) purchase options for nonprime US consumers. Katapult’s fully digital, next generation technology platform provides consumers with a flexible lease purchase option to enable them to obtain essential durable goods from Katapult’s network of top tier e-commerce retailers. Katapult’s sophisticated end-to-end technology platform provides both a seamless integration with merchants and exceptional customer experiences.

Orlando Zayas, CEO of Katapult, stated, “Today’s announcement marks the beginning of an exciting new chapter in our history and we are delighted to be entering into this transaction with FinServ to become a publicly traded company. Since our inception, Katapult’s goal has always been to provide a clear, transparent, and attractive transaction solution for nonprime consumers to access the essential products they need for everyday living. Today, we are serving over 150 merchants and 1.4 million consumers with our leading technology platform and e-commerce POS solution. This transaction will allow us to accelerate our growth opportunities and continue to build the premier company that provides consumers access to the goods they need and deserve through a flexible lease purchase transaction. It is an honor to lead Katapult’s strategic direction and my pleasure to continue to work with our great team to continue to grow this business.”

Lee Einbinder, CEO of FinServ, stated, “After a comprehensive search process, in which we examined numerous business combination opportunities, Katapult emerged as the most impressive partner, exceeding all of our criteria for a successful transaction. Katapult has a differentiated and best-in-class technology platform, with significant opportunities to continue its growth trajectory by expanding its merchant and consumer base. We are pleased to help facilitate Katapult’s listing on Nasdaq, and excited to be partnering with their entire management team as they continue to lead Katapult’s expansion as a publicly listed company.”

Brian Hirsch, Co-founder & Managing Partner of Tribeca Venture Partners and Director of Katapult, stated, “Katapult’s next generation technology platform, which provides a seamless digital experience for both consumers and merchants, ease of use and quick integration, and sophisticated risk modeling has helped fuel the company’s explosive growth over the past three years under Orlando’s leadership. This transaction provides Katapult with an even greater ability to strategically invest in its organic growth based on the large addressable market they serve.”

Katapult Investment Highlights

• A leading e-commerce POS, lease purchase platform provider focused on the estimated $50 billion of annual nonprime consumer durable goods e-commerce spend
• Delivers a clear and compelling value proposition to both consumers and merchants, transforming the way nonprime consumers shop for essential goods and enabling merchant access to this underserved segment
• Proprietary technology platform, purpose-built for e-commerce, combining superior consumer and merchant experiences with powerful risk management capabilities and scalability
• Established position in e-commerce ecosystem with significant platform support from top-tier e-commerce retailers, leading e-commerce platforms and lending partners
• Attractive, profitable financial profile with approximately $250 million of projected revenue (+172% y/y) for 2020
• Proven and experienced management team, who will continue leading the combined company

Transaction Summary

Under the terms of the proposed Transaction, FinServ will merge with Katapult at a pro forma combined enterprise value of approximately $1 billion and equity value of $962 million, representing EV/EBITDA multiples of 14.1x and 6.6x projected EBITDA for 2021 and 2022, respectively. Total consideration paid to Katapult’s existing shareholders will be $833 million.

Cash proceeds of the transaction will fund up to $325 million of cash consideration to Katapult’s existing shareholders and $50 million of cash to Katapult’s balance sheet. The cash components of the transaction will be funded by FinServ’s cash in trust of $250 million (assuming no redemptions) as well as a $150 million private placement of common stock at $10 per share from various institutional investors, led by Tiger Global Management and Neuberger Berman Funds, that will close concurrently with the merger. The balance of the consideration to Katapult’s equity holders will consist of equity in the Company. Existing Katapult equity holders have the potential to receive an earnout for additional shares of equity if certain price targets are met as set forth in the definitive merger agreement. Katapult’s current equity holders will own approximately 50% of the pro forma company, assuming no cash redemptions.

The transaction is expected to close during the first half of 2021 and remains subject to approval by FinServ stockholders representing a majority of the outstanding FinServ voting power, the effectiveness of a registration statement to be filed with the Securities and Exchange Commission (the “SEC”) in connection with the transaction, the expiration of the HSR Act waiting period, and other customary closing conditions. The Boards of Directors of both Katapult and FinServ have unanimously approved the contemplated transaction.

Advisors

PJT Partners is acting as financial advisor to Katapult. DLA Piper LLP (US) is acting as legal counsel to Katapult. Barclays is acting as financial advisor to FinServ. Kirkland & Ellis is acting as legal counsel to FinServ.

Barclays and PJT Partners are acting as placement agents with respect to the private placement. Barclays and Cantor Fitzgerald are acting as capital markets advisors to FinServ. Paul Hastings LLP is acting as placement agent counsel.

Conference Call and Presentation Information

Management of Katapult and FinServ will host an investor call on December 18, 2020, at 10:30am ET to discuss the proposed transaction. The conference call will be accompanied by a detailed investor presentation.

For those who wish to participate, the domestic toll-free access number is 1-877-407-0784 (Conference ID: 13714334), or for international callers, 1-201-689-8560 (Conference ID: 13714334). A telephone replay will be available shortly after the call and can be accessed by dialing 1-844-512-2921 (Replay Pin Number: 13714334), or for international callers, 1-412-317-6671 (Replay Pin Number: 13714334).

A webcast of the call, along with this press release and the investor presentation are available in the “investor” sections of FinServ’s website at https://finservacquisition.com and Katapult’s website at https://go.katapult.com/investor_relations.

In addition, FinServ will file the investor presentation with the SEC as an exhibit to a Current Report on Form 8-K prior to the call, which will be available on the SEC’s website at www.sec.gov.

About Katapult

Katapult is a next generation platform for digital and mobile-first commerce for the nonprime consumer. Katapult provides POS lease purchase options for consumers challenged with accessing traditional financial products who are seeking to obtain everyday durable goods. The Company has developed a sophisticated end-to-end technology platform that enables seamless integration with merchants, underwriting capabilities that exceed the industry standard, and exceptional customer experiences.

About FinServ

FinServ is a special purpose acquisition company formed for the purpose of acquiring or merging with businesses or entities in the financial services industry or businesses providing technology services to the financial services industry.

FinServ raised $250 million in its initial public offering in November 2019 and is listed on Nasdaq under the symbol “FSRV”.

Forward-Looking Statements

Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of Katapult’s and FinServ’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Katapult and FinServ. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed transaction, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed transaction or that the approval of the stockholders of FinServ or Katapult is not obtained; failure to realize the anticipated benefits of the proposed transaction; risks relating to the uncertainty of the projected financial information with respect to Katapult; risks related to the concentration of Katapult’s business among a relatively small number of merchants; the effects of competition on Katapult’s future business; the impact of the COVID-19 pandemic on Katapult’s business; the ability of FinServ or the combined company to issue equity or equity-linked securities or obtain debt financing in connection with the proposed transaction or in the future, and those factors discussed in FinServ’s final prospectus dated October 31, 2019 and Annual Report on Form 10-K for the fiscal year ended December 31, 2019, in each case, under the heading “Risk Factors,” and other documents of FinServ filed, or to be filed, with the Securities and Exchange Commission (“SEC”). If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that none of FinServ or Katapult presently know or that FinServ or Katapult currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect FinServ’s and Katapult’s expectations, plans or forecasts of future events and views as of the date of this Press Release. FinServ and Katapult anticipate that subsequent events and developments will cause FinServ’s and Katapult’s assessments to change. However, while FinServ and Katapult may elect to update these forward-looking statements at some point in the future, FinServ and Katapult specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing FinServ’s and Katapult’s assessments as of any date subsequent to the date of this Press Release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Certain market data information in this Press Release is based on the estimates of Katapult and FinServ management. Katapult and FinServ obtained the industry, market and competitive position data used throughout this Press Release from internal estimates and research as well as from industry publications and research, surveys and studies conducted by third parties. Katapult and FinServ believe their estimates to be accurate as of the date of this Press Release. However, this information may prove to be inaccurate because of the method by which Katapult or FinServ obtained some of the data for its estimates or because this information cannot always be verified due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process.

Non-GAAP Financial Measures

This document includes certain non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and that may be different from non-GAAP financial measures used by other companies. FinServ Acquisition Corp. and Katapult believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends of Katapult. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation.

Important Information for Investors and Stockholders and Where to Find It

In connection with the proposed transaction, FinServ intends to file a registration statement on Form S-4, including a proxy statement/prospectus (the “Registration Statement”), with the Securities and Exchange Commission (the “SEC”), which will include a preliminary proxy statement to be distributed to holders of FinServ’s common stock in connection with FinServ’s solicitation of proxies for the vote by FinServ’s stockholders with respect to the proposed transaction and other matters as will be described in the Registration Statement, and a prospectus relating to the offer of the securities to be issued to Katapult’s stockholders in connection with the proposed transaction. After the Registration Statement has been declared effective, FinServ will mail a definitive proxy statement/prospectus, when available, to its stockholders and Katapult’s stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, and any amendments thereto and any other documents filed with the SEC when they become available, carefully and in their entirety because they contain important information about FinServ, Katapult and the proposed transaction. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by FinServ through the website maintained by the SEC at http://www.sec.gov.

No Offer or Solicitation

This press release does not constitute an offer to sell or a solicitation of an offer to buy, or the solicitation of any vote or approval in any jurisdiction in connection with a proposed potential business combination among Katapult and FinServ or any related transactions, nor shall there be any sale, issuance or transfer of securities in any jurisdiction where, or to any person to whom, such offer, solicitation or sale may be unlawful. Any offering of securities or solicitation of votes regarding the proposed transaction will be made only by means of a proxy statement/prospectus that complies with applicable rules and regulations promulgated under the Securities Act of 1933, as amended (the “Securities Act”) and Securities Exchange Act of 1934, as amended or pursuant to an exemption from the Securities Act or in a transaction not subject to the registration requirements of the Securities Act.

Participants in the Solicitation

FinServ and Katapult and their respective directors and certain of their respective executive officers and other members of management and employees may be considered participants in the solicitation of proxies with respect to the proposed transaction. Information about the directors and executive officers of FinServ in its Annual Report on Form 10-K, filed with the SEC on March 27, 2020. Additional information regarding the participants in the proxy solicitation and a description of their direct interests, by security holdings or otherwise, will be set forth in the Registration Statement and other relevant materials to be filed with the SEC regarding the proposed transaction. Stockholders, potential investors and other interested persons should read the Registration Statement carefully before making any voting or investment decisions. These documents, when available, can be obtained free of charge from the sources indicated above.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201218005404/en/

Katapult Media Contact

Brian Ruby

ICR for Katapult

203-682-8268

[email protected]

Katapult Investor Contact

William Maina

ICR for Katapult

646-277-1236

[email protected]

FinServ Investor Contact

[email protected]

KEYWORDS: New York United States North America

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MEDIA:

Posted on December 18, 2020 9:25 am

2020 in Review: A Letter from Allarity’s CEO

Press Release       

 

To Our shareholders:

As the year is drawing to a close, we once again find ourselves planning for the future, but also reflecting on the events of 2020. I am sure we can all agree that 2020 was filled with unforeseen challenges, and for some of us, also unexpected opportunities. However, I am pleased to report that, for Allarity, despite the challenges brought about by the global COVID pandemic, it was a year of positive transformation. We have advanced our pipeline, even though somewhat less rapid than we hoped for at the start of the year, we have delivered on improving operational results, and we have taken important steps to position the company for what we expect to be an era of carefully managed clinical and financial progress. 

In 2020, our financial situation significantly improved. Early in the year, we managed to retool our balance sheet and, as a result, steer the company free of the historic dependency on short-term loan funding. This type of historical financing had weighed on the company’s outlook by creating a headwind. With the elimination of this financing, this headwind is now behind us.

As the year has progressed, we have repeatedly been able to show that our new focus on only three high priority programs, and our carefully reduction of costs, have been paying off. As a result, our operational cost has become 50% lower than the previous year.  In addition, in June, we announced that our prior stock purchase in Lantern Pharma, Inc., from which we in-licensed our Irofulven program several years ago, were realized in our financials, resulting in over USD 500K to our balance sheet.  We also instituted renewed equity financial instruments to better prepare the company for the future and creating a financial tailwind.

Along with positive financial improvements in our balance sheet, we monetized two of our non-prioritized portfolio programs, off our balance sheet, by our agreement with Smerud Medical Research International to continue clinical development of both LiPlaCis® and 2X-111, together with their DRP® companion diagnostics, resulting in potential future royalty stream on product sales and milestones if both drugs are approved of over US $30M. This has transformed our Q2 financials from a historic cash burn story to positively position the company for future development success. Besides utilizing our equity-financing agreements throughout the year, and monetizing our own secondary assets to the extent possible, our focus naturally also includes, on a continuing basis, to seek alternative non-dilutive sources of funds from the FDA and NIH, as well as other government funding sources, when such opportunities arise.

PORTFOLIO DEVELOPMENT

Development continued throughout the year in spite of the COVID pandemic. We advanced the preparation of our U.S. NDA for first approval of dovitinib as a treatment for renal cell carcinoma (RCC). Today, our most advanced clinical oncology asset is dovitinib, and we have made substantial progress in 2020 in moving dovitinib towards market approval, along with its DRP® companion diagnostic.  In March, we received feedback from our pre-NDA meeting with the FDA, regarding possible approval for dovitinib used to treat renal cell carcinoma (RCC), and during the year our internal planning and preparations have been progressing fully as planned. It is encouraging that the FDA indicated that they would accept the NDA filing when submitted. We received additional guidance including input on the “non-inferiority” margin against sorafenib, which had not been pre-defined in the protocol for the prior dovitinib Phase 3 trial in RCC. We also received feedback that no additional pre-clinical studies were required, no safety issues were raised, no additional pharmacokinetics, pharmacology, and/or human toxicity studies were required, and no new manufacturing (CMC) requests are necessary. Following this encouraging feedback, we aimed to file our dovitinib application with the FDA in late 2020. Unfortunately, the COVID pandemic impacted our third-party drug manufacturer resulting in a delay to our original timeline. Developing new transformational therapies is always full of unforeseeable uncertainties, and this is a case-in-point of such a situation. Our parallel work with submitting a Pre-Market Approval (PMA) application with the U.S. FDA to seek approval of the DRP® companion diagnostic for dovitinib is also progressing as planned.

However, we are not stopping there. To benefit even more patients, we are continuing to develop our PARP inhibitor, stenoparib, as a potential, new breakthrough medicine for COVID-19, and in 2020 we made significant progress. Following a remarkably successful collaboration with the Pathogen and Microbiome Institute at Northern Arizona University (NAU), a leading U.S. infectious disease test center, we earlier this year announced that stenoparib had shown in vitro anti-viral activity against Coronavirus in pre-clinical studies. We announced that we intended to work with FDA and NIH, as well as other funding sources, to advance the drug into clinical trials for the treatment of COVID-19.

It would be extremely positive, in every aspect, if Allarity could play a role in alleviating the disastrous personal-health consequences the Coronavirus pandemic will undoubtedly continue to have for a lengthy period of time – despite the recent encouraging news of vaccine approvals.

Based on all of this progress, our expectation is that our high priority portfolio will yield our first approved therapeutic, dovitinib, together with its DRP® companion diagnostic, within a not too distant future. My assessment is that our high priority portfolio is now stronger than it has ever been, as it also includes two additional, promising targeted cancer agents, IXEMPRA® and stenoparib, both in Phase 2 clinical development, to treat cancer patients with high unmet needs.

BUSINESS DEVELOPMENT

Our business development efforts also began to bear fruit as we secured full ownership of our stenoparib and dovitnib programs, to maximize company and shareholder value resulting from the future success of these priority assets. Just recently, we announced that we have successfully secured expanded commercial rights, from EISAI Co., Ltd., to develop stenoparib in the anti-viral space, including as a COVID-19 treatment, something I am very excited about.

In addition, we have resolved our historical, overly-complicated shareholder structure from past Special Purposes Vehicle Structures (SPV), which were established to allow investment into certain of our programs, by converting those investor/shareholder positions to common shares of Allarity. This ensures that we now have one investor base representing Allarity Therapeutics and that this shareholder base benefits from the future success of all of our clinical programs. As a result, we now have a much simpler capital structure to attract potential strategic partners and new investors.

Also, to unlock value for our shareholders, and to allow Allairty to sharpen its focus on our high priority clinical programs, we signed an out-licensing agreement with Smerud Medical Research International AS to continue the clinical development of our secondary LiPlaCis® and 2X-111 programs towards key value inflection points. The impact this deal had on our Q2 report numbers, mentioned earlier, are negligible compared to the total potential upside this dual deal brings. If our partner meets all the outlined milestones, Allarity expects milestone fees of nearly USD 30 million plus royalties on future drug sales. Smerud is a leading European-based clinical contract research organization (CRO) with expertise in the development of precision cancer drugs, and Smerud has previously worked with Allarity on the LiPlaCis® program as well as several other pipeline programs. 

At Allarity, we take great pride in our operational performance because we know that it underpins our strategic efforts, our ability to show the market our technology, and our ability to have a demonstrably positive impact on the patient. Our current company profile, with no debt and a focused pipeline, is the outcome we planned for in the end of 2019, when we started the process to completely revamp the company with a renewed strategy and renewed program focus, positioning Allarity as one of the key future contributors to realizing the promise of personalized cancer care.

ORGANIZATION STRUCTURE

In 2020, we took several actions to further improve Allarity’s ability to seize these opportunities, as we in September we announced that we reorganized the company with a new board, and in November a new CFO to better capitalize on the evolving and unique dynamics of the business and to achieve a better footprint in the U.S.

Our new CFO Jens Knudsen is a unique fit with our company at its current stage. Not only does he have experience from several U.S. listed biotech companies, but he is also a certified Public Accountant and a member of the American Institute of Certified Public Accountants and the Pennsylvania Institute of Certified Public Accountants. Furthermore, he is born and raised in Denmark, the same country as Allarity was founded, and Jens is now a dual citizen of both the U.S. and Denmark. The addition of Jens to the leadership team undoubtedly strengthens the Company’s ability to access both European and U.S. financial markets.

But this strengthening of our organization with a new CFO was not the only major role change this year. Only one month earlier we welcomed two new very seasoned Board Members. One is Soren Gade, a member of the European Parliament, and former Minister of Defense in Denmark. He is also currently serving as patron for the Danish Bowel Cancer Association. The second new board member, Gail Maderis, is currently CEO of Antiva Biosciences, Inc., and former CEO of Five Prime Therapeutics, Inc. Gail brings to our board strong CEO and drug development experience in oncology therapeutics. We are delighted to have the strong caliber of these individuals as a part of our new board. Together with our new CFO, these new board members bring extensive experience in and deep knowledge of oncology therapeutics development coupled with diagnostics that will greatly benefit Allarity.

While I am very pleased about these people joining us, it is important to stress that we remain very attentive to keeping our inhouse employee team as lean as possible. Since I joined the company in late 2019, we have seen an ongoing reduction of headcount, which has continued in 2020. Overall, it is a process which has impacted our financials positively in 2020, and in the long term, we expect our focus on cost efficiency will create a base for shareholder value creation.

PREPARING FOR SUSTAINED PROGRESS

During the prolonged period of value decline, due to market impact of our financing vehicles and the COVID-19 pandemic, and now followed by some stability, we have of course begun to focus on the preparation for the launch of new products, which is the end goal of our organization. We believe five important factors will create significant opportunities for Allarity to gain foothold as a more prominent biotech company, benefitting from increased awareness from both investors and potential partners in the year ahead.

1. We see the potential to gain approval of, and launch, up to 3 products over the next five years, made likely by a recent history of a well-executed corporate strategy.
2. We expect to enjoy dramatic benefits of filing NDA applications for dovitinib and its DRP® companion diagnostic in 2021.
3. We expect to gain attention from the U.S. biotech community, as we continue to pursue all options to bring stenoparib to the table as a possible COVID-19 treatment.
4. We anticipate a pickup in patient enrollment in our ongoing Phase 2 clinical trial of stenoparib as a treatment for ovarian cancer, being conducted at the Dana-Farber Cancer Institute (Boston, MA) next year as Covid begins to be addressed.
5. We anticipate the start of our Phase 2 clinical trial of IXEMPRA® as treatment for metastatic breast cancer in Europe.

During 2020, we also improved our business operations, including quality, by simplifying our structure and processes, including a major effort to improve our operational effectiveness. These efforts are freeing up resources that can be reinvested.

Our business development initiatives continue to include capital raising efforts and exploration of multiple alternative paths, including additional equity investment, consideration of potentially moving to a U.S. listed market, strategic partnerships with Big pharma, and other opportunities to better capitalize our company in order to adequately support and advance our key programs.

Of course, our business isn’t without its risks and challenges. Biotech development is capital intensive but with opportunities. Most significant, we need to ensure that our innovation, investment, and risking taking are rewarded in the marketplace, while doing all what we need to support the DRP® platform and value creation.  And, we need to accomplish all of this while managing through the COVID-19 pandemic.

DRIVING ALLARITY TOWARD A BREAKTHROUGH….REALIZED

We firmly believe that the companies, such as Allarity, that create meaningful value for patients over the next few years are the ones that will thrive. That’s why we are putting a renewed emphasis on Allarity’s purpose: “Personalized Cancer Care… Realized”. Our purpose defines who we are as a company and serves as a focus point of our culture, and also serves as the beacon of our business development. The true value of the company will only emerge when we fully realize making personalized cancer care a reality.

When we talk about breakthroughs within the company, we are not talking about just big scientific breakthroughs, but also breakthroughs in the way we work, and the way we get our technology and drugs to patients. Together we believe our DRP® technology breakthrough will create value for patients, colleagues and shareholders. It is our hope that these things have all been clearly evident in the past year, and that they will continue into the future.

Finally, we once again express our most sincere appreciation to our valued shareholders and associates; wishing you and your families a very Happy Holiday season and a bright start to 2021.

Thank you for your continued support of the work we do every day.

Sincerely,

Steve Carchedi

About Allarity Therapeutics

Allarity Therapeutics (Nasdaq First North Growth Market Stockholm: ALLR.ST) develops drugs for personalized treatment of cancer guided by its proprietary drug response predictor technology, the DRP^® platform. The company has a mature portfolio of six drug candidates, including compounds in the pre-registration stage. The product portfolio includes: stenoparib (2X-121), a PARP inhibitor in Phase 2 for ovarian cancer; dovitinib, a pan-TKI in post-Phase 3  for renal cell carcinoma; IXEMPRA^® (Ixabepilone), a microtubulin inhibitor approved in the U.S. for the treatment of breast cancer;  LiPlaCis^®, a liposomal formulation of cisplatin in Phase 2 trials for breast and prostate cancer;  2X-111, a liposomal formulation of doxorubicin under manufacturing for Phase 2 in breast cancer; and Irofulven, a DNA damaging agent in Phase 2 for prostate cancer.

About the Drug Response Predictor – DRP^® Companion Diagnostic

Allarity uses its drug specific DRP^® to select those patients who, by the genetic signature of their cancer, are found to have a high likelihood of responding to the specific drug. By screening patients before treatment, the response rate can be significantly increased. The DRP^® method builds on the comparison of sensitive vs. resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and prior clinical trial outcomes. DRP^® is based on messenger RNA from the patient’s biopsies. DRP^® has proven its ability to provide a statistically significant prediction of the clinical outcome from drug treatment in cancer patients in nearly 40 clinical studies that were examined, including an ongoing, prospective Phase 2 trial. The DRP^® platform can be used in all cancer types and is patented for more than 70 anti-cancer drugs.

Follow us on social media:

Facebook: https://www.facebook.com/AllarityTx/
LinkedIn: https://www.linkedin.com/company/allaritytx/
Twitter: https://twitter.com/allaritytx

Forward-looking statements

This announcement includes forward-looking statements that involve risks, uncertainties and other factors, many of which are outside of Allarity’s control and which could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements include statements concerning Allarity’s plans, objectives, goals, future events, performance and/or other information that is not historical information. All such forward-looking statements are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. Allarity undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances after the date made, except as required by law.

###

Media Contacts:

            Thomas Pedersen
            Carrotize PR & Communications
            +45 6062 9390
            [email protected]

Certified Adviser:

Svensk Kapitalmarknadsgranskning AB, Email: [email protected]. Tel: +46 11 32 30 732

The information was submitted for publication on 18 December 2020.

Attachment

• 2020 in Review – a letter from Allarity’s CEO

Posted on December 18, 2020 9:23 am

Fidelity National Financial and F&G Complete the Sale of F&G Re to Aspida Holdings Ltd.

PR Newswire

JACKSONVILLE, Fla. and DES MOINES, Iowa, Dec. 18, 2020 /PRNewswire/ — Fidelity National Financial, Inc. (“FNF”) (NYSE: FNF) and F&G, a leading provider of annuities and life insurance, announced today the completed sale of F&G Reinsurance Ltd (“F&G Re”) to Aspida Holdings Ltd. (“Aspida”), an indirect subsidiary of Ares Management Corporation (NYSE: ARES). Proceeds from the sale of F&G Re will be used for general corporate purposes, including funding growth opportunities at F&G. Financial terms of the deal were not disclosed, and the transaction is expected to have no material impact to FNF’s GAAP financial results. As previously announced, F&G and Aspida (via F&G Re) will enter into a flow reinsurance agreement with respect to F&G’s MYGA products on a coinsurance fund withheld basis subsequent to the closing of the transaction.

RBC Capital Markets served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to F&G in connection with this transaction.

About Fidelity National Financial, Inc.

Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries.  FNF is the nation’s largest title insurance company through its title insurance underwriters – Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York – that collectively issue more title insurance policies than any other title company in the United States.  More information about FNF can be found at fnf.com. 

About F&G

F&G is part of the FNF family of companies.  F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of annuity and life insurance products and is headquartered in Des Moines, Iowa.  For more information, please visit www.fglife.com.

Forward-Looking Statements

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:  This press release contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements relating to F&G and FNF, including statements relating to the Transaction and related matters.  Such statements are subject to risks and uncertainties, many of which are beyond the control of FNF that could cause actual results, events and developments to differ materially from those set forth in, or implied by, such statements.  These statements are based on the beliefs and assumptions of the management of FNF.  Forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions.  Factors that could cause actual results, events and developments to differ include, without limitation:  (1) changes in general economic, business and political conditions, including changes in the financial markets; (2) the outcome of any legal proceedings that may be instituted against F&G or FNF as a result of FNF’s recently-completed acquisition of FGL Holdings (the “FGL Mergers”); (3) the risk that the Transaction disrupts current plans and operations of F&G or FNF as a result of the closing thereof; (4) the ability to recognize the anticipated benefits of the FGL Mergers, which may be affected by, among other things, competition, the ability of the management of FNF to grow and manage the combined business profitably and to retain key employees, including those experienced with integration efforts; (5) costs incurred in connection with the FGL Mergers; (6) the possibility of financial impairments as a result of the acquisition accounting in connection with the FGL Mergers; (7) changes in applicable laws or regulations; (8) the possibility that FNF may be adversely affected by other economic, business, and/or competitive factors, as well as the impact on the business, operations, results of operations and trading prices of the shares of FNF arising out of the COVID-19 outbreak; (9) the risk that the businesses will not be integrated successfully, that such integration may be more difficult, time-consuming or costly than expected or that the expected benefits of the acquisition will not be realized; (10) the severity of FNF’s title insurance claims; (11) a downgrade of FNF’s credit rating by rating agencies; (12) adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding, increased mortgage defaults, or a weak U.S. economy; (13) our business concentration in the States of California, Texas, Florida, New Jersey and Arizona; (14) our potential inability to find suitable acquisition candidates; (15) our dependence on distributions from our title insurance underwriters as our main source of cash flow; (16) competition from other title insurance companies; (17) interest rate fluctuations; (18) equity market volatility; (19) credit risks of our counterparties, including companies with whom we have reinsurance agreements or have purchased call options; and (20) other risks and uncertainties identified in FNF’s filings with the U.S. Securities and Exchange Commission.  FNF cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made.  FNF does not undertake or accept any obligation or undertaking to release any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law.  The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.

All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized.  FNF does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, except as required by law.

FNF-G

View original content:http://www.prnewswire.com/news-releases/fidelity-national-financial-and-fg-complete-the-sale-of-fg-re-to-aspida-holdings-ltd-301196037.html

SOURCE Fidelity National Financial, Inc.; FGL Holdings

Posted on December 18, 2020 9:23 am

Ares Management Corporation and Aspida Announce the Closing of F&G Reinsurance Acquisition

Ares Management Corporation and Aspida Announce the Closing of F&G Reinsurance Acquisition

Aspida Platform Poised to Execute on Growth and Acquisition Strategy to Address Significant Market Opportunity

LOS ANGELES–(BUSINESS WIRE)–
Ares Management Corporation (“Ares”) (NYSE: ARES) and its indirect subsidiary Aspida Holdings Ltd. (“Aspida”) jointly announced today the completion of Aspida’s previously announced acquisition of F&G Reinsurance Ltd (the “Company”) from FGL Holdings (“F&G”), a subsidiary of Fidelity National Financial, Inc. (NYSE: FNF). As part of the transaction, Aspida will enter into a strategic flow reinsurance agreement with F&G related to certain annuity products. Terms of the all cash transaction were not disclosed.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201218005403/en/

The Company, a Bermuda-domiciled life and annuity reinsurer with approximately $2 billion in invested assets as of September 30, 2020, will continue to operate as a reinsurance company in Bermuda under the Aspida brand (“Aspida Re”). Members of the Company’s management team will remain in place. Aspida Re intends to be a solutions provider to insurance partners that are looking to optimize their balance sheets and be best positioned for future growth.

Through Ares Insurance Solutions (“AIS”), Ares remains focused on enhancing its capabilities to originate and manage insurance assets to scale Aspida’s platform. This has included the recent appointment of Raj Krishnan, Partner and Chief Investment Officer of AIS, who will lead AIS’s asset management support for Aspida Re and its ceding insurers.

“With support from Ares and the AIS team, Aspida is poised to execute on its organic and inorganic growth strategy seeking to capitalize on the attractive and sizable annuity and retirement market,” said David Reilly, Partner and Head of Ares Insurance Solutions. “We are excited by the opportunity to partner with insurance companies to help them efficiently meet their capital needs through our reinsurance offerings.”

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent, attractive investment returns for fund investors throughout market cycles. As of September 30, 2020, Ares Management’s global platform had approximately $179 billion of assets under management with more than 1,400 employees operating across North America, Europe and Asia Pacific. For more information, please visit www.aresmgmt.com.

About Aspida

Aspida Holdings Ltd. (“Aspida”) is an indirect subsidiary of Ares Management Corporation, which was created to execute on Ares Insurance Solutions’ plans to issue insurance and reinsurance products for individuals and institutions seeking to fund their long-term financial needs. Aspida seeks to be a trusted partner focused on its customers’ financial security and success. Aspida Re, a wholly owned subsidiary of Aspida, operates in Bermuda and services reinsurance products on behalf of insurance company clients. For more information, please visit: www.aspida.com.

Forward-Looking Statements

Statements included herein contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to the impact of the COVID-19 pandemic and the pandemic’s impact on the U.S. and global economy, as well as those described from time to time in our filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the control of Ares and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read Ares’ filings with the Securities and Exchange Commission. Ares undertakes no duty to update any forward-looking statements made herein, whether as a result of new information, future developments or otherwise, except as required by law.

In addition to factors previously disclosed in Ares’ filings with the Securities and Exchange Commission, including those discussed under the heading “Risk Factors” in its most recently filed reports on Form 10-K and Form 10-Q, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the possibility that regulatory and other approvals and conditions to the transaction are not received or satisfied on a timely basis or at all, or contain unanticipated terms or conditions; the possibility that modifications to the terms of the transaction may be required in order to obtain or satisfy such approvals or conditions; delays in closing the transaction; difficulties, delays or unanticipated costs in integrating the Company’s operations; purchase price adjustments; unexpected costs resulting from the transaction, delays or other disruptions associated with the acquisition or integration of personnel or operations; changes in economic conditions; and regulatory conditions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201218005403/en/

Media:

Brunswick Group

Jonathan Doorley / Alex Yankus

212-333-3810

[email protected]

Ares Management Corporation

Brittany Cash, 212-301-0347

[email protected]

Investors:

Ares Management Corporation

Carl Drake, 678-538-1981

[email protected]

KEYWORDS: California Caribbean United States Bermuda North America

INDUSTRY KEYWORDS: Professional Services Other Professional Services Finance Construction & Property Consulting REIT Banking

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Urology Times® Partners with LUGPA to Host Monthly Virtual Tumor Board Beginning January 2021

Tumor board discussions will analyze treatment landscapes, clinical study findings and emerging treatment options for genitourinary cancers.

CRANBURY, N.J.–(BUSINESS WIRE)–Urology Times®, the leading multimedia platform for urologists and allied health professionals, is pleased to announce a partnership with Large Urology Group Practice Association (LUGPA). Through this partnership, Urology Times® and LUGPA will produce a monthly virtual tumor board titled “Around the Practice,” commencing January 2021.

“As an organization that provides unequaled support and resources to integrated urology practices, LUGPA serves as a cornerstone of specialty,” said Mike Hennessy Jr., president and CEO of MJH Life Sciences™, parent company of Urology Times®. “We look forward to evolving our partnership with LUGPA to expand upon our venues of information dissemination, with content derived from industry expertise and clinical perspectives.”

The virtual tumor board will focus solely on genitourinary (GU) cancer and explore all relative facets. The objective is to allow providers across the United States the ability to submit actual challenging cases for management discussion across all GU malignancies that are encountered on a routine basis.

Raoul S. Concepcion, M.D., FACS, and Jason Hafron, M.D., will co-moderate the multidisciplinary program, which will feature guest panelists such as community urologists, oncologists and other members of the integrative cancer care team. Each “Around the Practice” tumor board will present didactic discussion with live interaction between the registered viewing audience and selected guest discussants representing urology, radiation oncology and medical oncology. Scheduled cases (to be solicited or submitted) will include the following:

• Muscle-invasive bladder/urothelial cancer (MIBC)
• Upper tract urothelial carcinoma
• Incidentally discovered adrenal mass
• Non–muscle-invasive bladder/urothelial cancer (NMIBC), bacillus Calmette-Guérin unresponsive
• Oligometastatic prostate cancer

“Around the Practice” will broadcast on the 3rd Wednesday of each month at 5:00 P.M. EST with 2 cases presented for each tumor board. These virtual events will be available for LUGPA members and the Urology Times® audience.

For more information on Urology Times®, click here.

For more information on LUGPA, click here.

About Urology Times®

Urology Times® is the leading multimedia resource for urologists and allied health professionals. Urology Times® provides readers with clinical analysis, policy perspectives and practical advice to improve their practice. The No. 1 read publication reaching the full spectrum of specialists treating urologic disorders, Urology Times® keeps urologists up to date so they can provide better patient care while running a more efficient practice. Urology Times® is a brand of MJH Life Sciences™, the largest privately held, independent, full-service medical media company in North America dedicated to delivering trusted health care news across multiple channels.

About LUGPA

LUGPA is a trade association that represents independent urology group practices in the U.S., with more than 2,170 physicians who make up more than 25 percent of the nation’s practicing urologists, and provide more than 30% of the total urologic care in the U.S. The association is committed to providing the best resources and information for its member practices through advocacy, research, data collection and benchmarking efforts. LUGPA advocates for independent urology practices by promoting quality clinical outcomes, fostering new opportunities and improving advocacy in the legislative and regulatory arenas. For more information, visit lugpa.org.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201218005342/en/

Urology Times® media contact

Megan Ferguson, 609-250-4356

[email protected]

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Biotechnology Hospitals Health Practice Management Oncology

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