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CUSIP No. 02083G100
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SCHEDULE 13D
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Page 7 of 14 Pages
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Item 3.
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SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
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Prior to the Merger (defined and described in Item 4), Alpine Immunosciences held shares of common stock of Old Alpine (defined in Item 4),
which had been acquired over several years through various means. In addition, prior to the Merger, on April 18, 2017, Alpine Immunosciences, together with other Old Alpine stockholders, entered into a Subscription Agreement with Old Alpine
(the Subscription Agreement), pursuant to which Alpine Immunosciences agreed to purchase 520,045 shares of Old Alpine common stock at a price of $6.327 per Old Alpine share immediately prior to the consummation of the Merger, for a total
of approximately $3,290,324.72 (the Financing). The closing of the Merger was conditioned upon the closing of the Financing. As a result of the foregoing, immediately prior to consummation of the Merger, Alpine Immunosciences
beneficially owned 7,655,276 shares of Old Alpine common stock. The description contained herein of the Subscription Agreement does not purport to be complete and is qualified in its entirety by reference to the form of the document, which is
attached as Exhibit B to this Schedule 13D and is incorporated by reference herein.
As a result of the Merger, based on the exchange rate
of 0.4969 Shares for each share of Old Alpine common stock (the Exchange Ratio), Alpine Immunosciences received an aggregate of 3,803,906 Shares in exchange for its shares of Old Alpine common stock.
All fractional Shares were paid in cash.
The source of funds for the foregoing purchases came from the working capital of Alpine Immunosciences.
In addition, prior to the Merger, each of Dr. Gold and Dr. Venkatesan held shares of common stock of Old Alpine, which had been
acquired over several years through various means, and options to acquire shares of common stock of Old Alpine, which had been granted under the Alpine Plan (defined in Item 4). Prior to the Merger, Dr. Gold beneficially owned 196,875 shares of
Old Alpine common stock, including options to acquire 1,128,564 shares of Old Alpine common stock, and Dr. Venkatesan beneficially owned 118,750 shares of Old Alpine common stock, including options to acquire 181,250 shares of Old Alpine common
stock.
Immediately after the Merger, after giving effect to the Exchange Ratio: (i) Dr. Golds options to purchase 605,000
shares of Old Alpines common stock granted in March 2017 (March 2017 Options) converted into options to purchase 300,624 Shares; (ii) of Dr. Golds options to purchase 300,000 shares of Old Alpines common stock
granted in December 2015 (December 2015 Options), the 196,875 December 2015 options which were exercised prior to the Merger were converted into an aggregate of 97,827 Shares, and the 103,125 December 2015 Options which were outstanding
immediately prior to the Merger were converted into options to purchase 51,242 Shares; and (iii) Dr. Golds options to purchase 420,439 shares of Old Alpines common stock granted in April 2017 (April 2017 Options)
converted into options to purchase 208,916 Shares. Subsequent to the Merger, Dr. Gold was granted options to purchase 70,000 Shares in January 2018 (January 2018 Options), options to purchase 200,000 Shares in February 2019
(February 2019 Options), options to purchase 270,000 shares in January 2020 (January 2020 Options) and restricted stock units constituting the right to receive 67,569 shares in January 2020, of which 33,784 of such restricted
stock units vested on June 30, 2020 with 8,227 of such vested restricted stock units being withheld by the Company to satisfy its tax withholding obligations in connection with the net settlement of such restricted stock units (January
2020 RSUs). Each of the March 2017 Options, December 2015 Options, April 2017 Options, January 2018 Options, February 2019 Options, January 2020 Options and the January 2020 RSUs are subject generally to Dr. Golds continued
employment as the Companys Executive Chairman and Chief Executive Officer and certain change of control provisions.