Material Relationships with the Selling Stockholders
The Selling Stockholders are our principal stockholders with whom
we have engaged in significant transactions since the inception of
Cerevel Therapeutics, Inc., our predecessor, as described in
greater detail below. As of the date of this prospectus, BC
Perception Holdings, LP and Pfizer, together, own or control more
than a majority of the total voting power of our common stock,
which gives them significant influence over us. Furthermore, so
long as BC Perception Holdings, LP and Pfizer own certain specified
amounts of our equity securities, BC Perception Holdings, LP and
Pfizer have certain rights to nominate our directors, as explained
in greater detail below.
Pfizer License Agreement, the Equity Commitment and Share
Purchase Option
Cerevel Therapeutics, Inc.’s principal operations commenced in
August 2018 when it acquired licensed technology to a portfolio of
pre-commercial neuroscience
assets from Pfizer pursuant to a license agreement with Pfizer, or
the Pfizer License Agreement, in exchange for the issuance of
3,833,333.33 shares of Series A-2 Preferred Stock and obtained a
$350.0 million equity commitment from BC Perception Holdings,
LP in exchange for the issuance of Series A-1 Preferred Stock and Series A Common
Stock. Pursuant to the equity commitment, Cerevel Therapeutics,
Inc. issued and sold to BC Perception Holdings, LP (i) an
aggregate of 6,900,000 shares of Series A-1 Preferred Stock and 4,600,000
shares of Series A Common Stock at a purchase price of $10.00 per
share in August 2018, (ii) an aggregate of 3,450 shares of
Series A-1 Preferred Stock
and 2,300 shares of Series A Common Stock at a purchase price of
$10.00 per share in July 2019, (iii) an aggregate of 4,204,075
shares of Series A-1 Preferred Stock
and 1,795,925 shares of Series A Common Stock at a purchase price
of $10.00 per share in December 2019 and (iv) an aggregate of
1,750,000 shares of Series A-1 Preferred Stock
and 750,000 shares of Series A Common Stock at a purchase price of
$10.00 per share in July 2020.
Upon the closing of the Business Combination, Pfizer’s shares of
Series A-2 Preferred Stock
were converted into an aggregate of 26,149,211 shares of common
stock and BC Perception Holdings, LP’s Series A-1 Preferred Stock
and Series A Common Stock were converted into an
aggregate of 49,961,943 shares of common stock.
For additional details regarding the Pfizer License Agreement, see
“Item 1. Business— Pfizer License Agreement” of, and Note
6, Pfizer License Agreement to our audited consolidated
financial statements included in, our Annual Report on Form
10-K for the year ended
December 31, 2021 filed with the SEC.
For additional details regarding the equity commitment from BC
Perception Holdings, LP and certain other transactions related
thereto, see “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations— Equity
Commitment and Share Purchase Option” of, and Note 7, Equity
Commitment and Share Purchase Option to our audited
consolidated financial statements included in, our Annual Report on
Form 10-K for the year
ended December 31, 2021 filed with the SEC.
Stockholders’ Agreement and the Registration Rights
Agreement
In connection with its initial financing, Cerevel Therapeutics,
Inc. entered into (i) a stockholders’ agreement and
(ii) a registration rights agreement, in each case, with BC
Perception Holdings, LP and Pfizer.
The stockholders’ agreement, among other things, provided for the
appointment of Cerevel Therapeutics, Inc.’s directors by BC
Perception Holdings, LP and Pfizer and certain waivers of the
doctrine of corporate opportunity, and the registration rights
agreement provided certain registration rights to BC Perception
Holdings, LP and Pfizer.
Pursuant to the Business Combination Agreement, the stockholders’
agreement and the registration rights agreement were each
terminated at the closing of the Business Combination.
Management Agreements
In connection with its initial financing, Cerevel Therapeutics,
Inc. entered into a management agreement with Bain Capital Private
Equity, LP and Bain Capital Life Sciences, LP, which are entities
related to BC Perception
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