Item 2.01. Completion of Acquisition or Disposition of Assets.
Merger with Ayala Pharmaceuticals, Inc.
On October 18, 2022, the Registrant entered into an Agreement and Plan of Merger
(the "Merger Agreement"), by and among the Registrant, Old Ayala, Inc. (f/k/a
Ayala Pharmaceuticals, Inc.), a Delaware corporation ("Old Ayala"), and Doe
Merger Sub, Inc. ("Merger Sub"), a Delaware corporation and a wholly-owned
subsidiary of Advaxis. On January 19, 2023 (the "Closing Date"), pursuant to the
Merger Agreement, Merger Sub merged with and into Old Ayala, with Old Ayala
continuing as the surviving company and a wholly-owned subsidiary of the
Registrant (the "Merger").
The Merger Agreement and additional information on the details of the Merger may
be found in the Current Report on Form 8-K filed with the Securities and
Exchange Commission ("SEC") by the Registrant on October 19, 2022.
At the effective time of the Merger (the "Effective Time"), (i) each share of
the common stock, par value $0.01 per share, of Old Ayala (the "Old Ayala Common
Stock") issued and outstanding immediately prior to the Merger was automatically
converted into the right to receive 0.1874 shares (the "Exchange Ratio") of the
common stock, par value $0.001 per share, of the Registrant (the "New Ayala
Common Stock"), (ii) each outstanding option to purchase shares of the Old Ayala
Common Stock (each, an "Old Ayala Option") was substituted and converted
automatically into an option (each, an "New Ayala Replacement Option") to
purchase the number of shares of New Ayala Common Stock equal to the product
obtained by multiplying (a) the number of shares of Old Ayala Common Stock
subject to such Old Ayala Option immediately prior to the effective time of the
Merger, by (b) the Exchange Ratio, with any fractional shares rounded down to
the nearest whole share, with each such New Ayala Replacement Option to have an
exercise price per share of New Ayala Common Stock equal to (x) the per share
exercise price for the shares of Old Ayala Common Stock subject to the
corresponding Old Ayala Option immediately prior to the effective time of the
Merger, divided by (y) the Exchange Ratio, rounded up to the nearest whole cent,
and (iii) each restricted stock unit of Old Ayala (each, an "Old Ayala RSU")
outstanding immediately prior to the effective time of the Merger, whether or
not vested or issuable, was substituted and converted automatically into a
restricted stock unit award of New Ayala with respect to a number of shares of
New Ayala Common Stock equal to the product obtained by multiplying (a) the
total number of shares of Old Ayala Common Stock subject to such Old Ayala RSU
immediately prior to the effective time of the Merger by (b) the Exchange Ratio,
with any fractional shares rounded down to the nearest whole share.
The issuance of New Ayala Common Stock in connection with the Merger Agreement
was registered under the Securities Act of 1933, as amended, pursuant to The
Registrant's registration statement on Form S-4 (Registration No. 333-268586)
declared effective by the SEC on December 12, 2022 (the "Registration
Statement"). The proxy statement/prospectus in the Registration Statement
contains additional information about the Merger.
As a result of the consummation of the Merger, Old Ayala, the surviving entity
in the Merger, became a wholly-owned subsidiary of the Registrant. For
accounting purposes, the Merger was treated as a "reverse acquisition" and Old
Ayala was considered the accounting acquirer. Accordingly, Old Ayala will be
reflected as the predecessor and acquirer in the financial statements of the
Registrant (the legal acquirer) for periods ending after December 31, 2022. The
Registrant's historical financial condition and results of operations shown for
comparative purposes in future periodic filings will reflect Old Ayala's
historical results.
The foregoing description of the Merger Agreement and the transactions
contemplated by the Merger Agreement does not purport to be complete and is
subject to, and qualified in its entirety by reference to, the full text of the
Merger Agreement, which was previously filed as Exhibit 2.1 to the Registrant's
Current Report on Form 8-K filed on October 19, 2022 with the SEC and is
incorporated by reference herein.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
Resignation of Directors
In accordance with the Merger Agreement, immediately prior to the Effective
Time, Dr. James Patton and Mr. Richard Berman resigned from the Board of the
Registrant. Dr. Patton had been a member of the Nominating and Corporate
Governance Committee, Research and Development Committee and the Audit
Committee. Mr. Berman had been the chair of the Audit Committee and a member of
the Compensation Committee and the Nominating and Corporate Governance
Committee. The resignations were not the result of any disagreements with
Advaxis relating to the Advaxis' operations, policies or practices.
Appointment of Directors
In accordance with the Merger Agreement, effective immediately after the
Effective Time, the following individuals were appointed to the Board of the
Registrant.
Robert Spiegel, M.D., F.A.C.P. Dr. Spiegel had served as a member of Old Ayala's
board of directors from December 2017 until the Effective Time. Since 2012, Dr.
Spiegel has served as an Associate Professor at the Weill Cornell Medical
School. In addition, Dr. Spiegel has served as a Senior Advisor to Warburg
Pincus, a private equity firm, and an Advisor to the Israel Biotech Fund, a
venture investment fund since 2010 and 2016, respectively. Prior to these
positions, Dr. Spiegel served as Chief Medical Officer of PTC Therapeutics,
Inc., a biopharmaceutical company, from March 2011 to April 2016. Prior to his
time at PTC Therapeutics, Dr. Spiegel held various management positions at
Schering-Plough Corporation, a global healthcare company, including as Chief
Medical Officer and Senior Vice President of the Schering-Plough Research
Institute, the pharmaceutical research arm of the Schering-Plough Corporation
from 1998 to 2009. Dr. Spiegel is currently a member of the board of directors
of Geron Corporation and Cyclacel Pharmaceuticals, Inc., biopharmaceutical
company, since 2010 and 2018, respectively. Dr. Spiegel has previously served as
a member of the board of directors for Sucampo Pharmaceuticals, Inc., a
biopharmaceutical company, Edge Therapeutics, Inc., a biotechnology company,
Avior Computing Corporation, a privately-held governance risk and compliance
process technology company, Talon Therapeutics, Inc., a biopharmaceutical
company, Capstone Therapeutics Corp., a biotechnology company, the Cancer
Institute of New Jersey and Cancer Care New Jersey. Dr. Spiegel received a B.A.
in 1971 from Yale University and an M.D. from the University of Pennsylvania in
1975. Following his residency in internal medicine, Dr. Spiegel completed a
fellowship in medical oncology at the National Cancer Institute. We believe that
Dr. Spiegel's extensive medical and scientific knowledge as well as his
experience in the life science industry qualifies him to serve on New Ayala's
Board.
Murray A. Goldberg, M.B.A. Mr. Goldberg had served as a member of Old Ayala's
board of directors from December 2017 until the Effective Time. Mr. Goldberg
held various management positions at Regeneron Pharmaceuticals, Inc., a
biopharmaceutical company, from March 1995 to March 2015, including as Senior
Vice President of Administration and Assistant Secretary from October 2013 to
March 2015, as Chief Financial Officer and Senior Vice President, Finance and
Administration and Assistant Secretary from March 1995 to October 2013 and as
Treasurer from March 1995 to October 2012. Mr. Goldberg previously served on the
boards of directors of Aerie Pharmaceuticals Inc., a biopharmaceutical company,
from August 2013 to June 2020, where he also served as the chairman of its audit
committee, and Teva Pharmaceuticals Industries Ltd. from July 2017 to June 2020.
Mr. Goldberg received a B.S. in Engineering from New York University, a Master's
degree in International Economics from the London School of Economics and an
M.B.A. from the University of Chicago. We believe that Mr. Goldberg is qualified
to serve on New Ayala's Board because of his broad financial, operational and
transactional experience in the industry.
Vered Bisker-Leib, Ph.D., M.B.A. Dr. Bisker-Leib had served as a member of Old
Ayala's board of directors from August 2020 until the Effective Time. Dr.
Bisker-Leib is the President and Chief Operating Officer of Compass
Therapeutics, Inc. where she has been a member of the executive leadership team
since November 2017. Prior to Compass, Dr. Bisker-Leib advised Atlas Ventures
portfolio companies as an entrepreneur-in-residence from November 2016 to
November 2017. Previously, as the Chief Business Officer of Cydan Development,
Inc. from October 2014 to October 2016, Dr. Bisker-Leib founded biotech
companies focused on therapies addressing rare diseases, including Imara Inc.
Dr. Bisker-Leib was a member of BMS' strategic transactions group where she
assumed roles of increasing responsibility across five therapeutic areas, most
recently as an Executive Director and Global Head of business development for
the cardiovascular and metabolic franchises. Dr. Bisker-Leib received a Ph.D. in
Chemical Engineering and an M.B.A. from the University of Massachusetts,
Amherst. Dr. Bisker-Leib has a B.Sc. in Chemical Engineering from the Israel
Institute of Technology, Haifa. We believe that Dr. Bisker-Leib's extensive
experience in the life-science industry qualifies her to serve on New Ayala's
Board.
Board Committees
Audit Committee
In connection with the closing of the Merger, New Ayala's Board is expected to
select Mr. Goldberg, Dr. Bisker-Leib and Roni Appel to serve as members of the
audit committee. To qualify as independent to serve on the Registrant's audit
committee, applicable SEC rules and listing standards of the Nasdaq Stock
Market, LLC ("Nasdaq") require that a director not accept any consulting,
advisory or other compensatory fee from the Registrant or Old Ayala, other than
for service as a director, or be an affiliated person of the Registrant or Old
Ayala. The composition of the audit committee will comply with the applicable
requirements of the rules and regulations of Nasdaq and the SEC.
Compensation Committee
In connection with the closing of the Merger, New Ayala's Board is expected to
select members of the compensation committee. Each member of the Registrant's
compensation committee is expected to be a "non-employee" director within the
meaning of Rule 16b-3 of the rules promulgated under the Exchange Act and
independent within the meaning of the independent director guidelines of Nasdaq.
Following the completion of the Merger, the composition of the compensation
committee will comply with the applicable requirements of the rules and
regulations of Nasdaq.
Nominating and Corporate Governance Committee
In connection with the closing of the Merger, New Ayala's Board is expected to
select members of the nominating and corporate governance committee. Each member
of the Registrant's nominating and corporate governance committee is expected to
be a "non-employee" director within the meaning of Rule 16b-3 of the rules
promulgated under the Exchange Act and independent within the meaning of the
independent director guidelines of Nasdaq. Following the completion of the
Merger, the composition of the nominating and corporate governance committee
will comply with the applicable requirements of the rules and regulations of
Nasdaq.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
Year.
Name Change
On January 19, 2023, following the consummation of the Merger, the Registrant
filed a Certificate of Amendment of Amended and Restated Certificate of
Incorporation with the Secretary of State of the State of Delaware changing the
corporate name of the Registrant to "Ayala Pharmaceuticals, Inc." as approved by
the Registrant's stockholders.
Forward Looking Statements
Certain statements contained in this Form 8-K may be considered forward-looking
statements within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995, including statements regarding the transaction involving Old Ayala,
Inc. (f/k/a Ayala Pharmaceuticals, Inc.) and Ayala Pharmaceuticals, Inc. (f/k/a
Advaxis, Inc.) ("New Ayala") and the ability to list the common stock of New
Ayla on Nasdaq. Forward-looking statements generally include statements that are
predictive in nature and depend upon or refer to future events or conditions,
and include words such as "may," "will," "should," "would," "expect,"
"anticipate," "plan," "likely," "believe," "estimate," "project," "intend," and
other similar expressions among others. Statements that are not historical facts
are forward-looking statements. Forward-looking statements are based on current
beliefs and assumptions that are subject to risks and uncertainties and are not
guarantees of future performance. Actual results could differ materially from
those contained in any forward-looking statement as a result of various factors,
including, without limitation: (i) uncertainties as to the ability of New Ayala
to meet the requirements to list its common stock on Nasdaq; (ii) the ability of
New Ayala to integrate Old Ayala's business successfully and to achieve
anticipated synergies; (iii) the possibility that other anticipated benefits of
the transaction will not be realized, including without limitation, anticipated
revenues, expenses, earnings and other financial results, and growth and
expansion of New Ayala's operations, or the anticipated tax treatment of the
combination; (iv) potential litigation relating to the transaction that could be
instituted against New Ayala or their respective directors; (v) the ability of
New Ayala to retain, attract and hire key personnel; (vi) potential adverse
reactions or changes to relationships with customers, employees, suppliers or
other parties resulting from the completion of the transaction; (vii)
legislative, regulatory and economic developments; (viii) unpredictability and
severity of catastrophic events, including, but not limited to, acts of
terrorism or outbreak of war or hostilities, as well as management's response to
any of the aforementioned factors; and (ix) such other factors as are set forth
in New Ayala's periodic public filings with the SEC, including but not limited
to those described under the heading "Risk Factors" in New Ayala's Form 10-K for
the fiscal year ended October 31, 2021. Except as required by applicable law,
New Ayala undertakes no obligation to revise or update any forward-looking
statement, or to make any other forward-looking statements, whether as a result
of new information, future events or otherwise.
Item 9.01 - Financial Statements and Exhibits.
(a) Financial statements of businesses or funds acquired.
The Registrant intends to file financial statements required by this Item
9.01(a) under the cover of an amendment to this Current Report on Form 8-K no
later than seventy-one (71) calendar days after the date on which this Form 8-K
was required to be filed.
(b) Pro forma financial information.
The Registrant intends to file the pro forma financial information that is
required by this Item 9.01(b) under the cover of an amendment to this Current
Report on Form 8-K no later than seventy-one (71) calendar days after the date
on which this Form 8-K was required to be filed.
(d) Exhibits
Exhibit
Number Description
2.1 Agreement and Plan of Merger and Reorganization, by and among the
Company, Merger Sub, and Ayala, dated as of October 18, 2022
(incorporated by Reference to Exhibit 2.1 to the Current Report on Form
8-K of the Registrant, filed with the SEC on October 19, 2022).
3.1 Certificate of Amendment of Amended and Restated Certificate of
Incorporation of Advaxis, Inc.
3.2 Certificate of Merger of Doe Merger Sub with and into Ayala
Pharmaceuticals, Inc.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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