Ayala Pharmaceuticals, Inc. announced a private placement of senior convertible promissory notes and warrants to purchase up to 2,250,000 shares of its common stock for aggregate proceeds of $2,000,000 on March 1, 2024. The transaction included participation from returning investors, Israel Biotech Fund I, L.P., and Israel Biotech Fund II, L.P. funds managed by Israel Biotech Fund., Arkin Bio Venture Partners Ltd., BioTelemetry, Inc. The Notes will mature on November 17 , 2028. The conversion price in effect on any Conversion Date shall be equal to the lower of $0.40 and 50% of the Common Stock?s price per share as of the close of market on the Trading Day immediately prior to the date of the Notice of Conversion, subject to adjustment as set forth herein.

The exercise price per share of Common Stock under this Warrant shall be equal to the lower of $0.40 and 50% of the Common Stock?s price per share as of the close of market on the Trading Day immediately prior to the date of the Notice of Exercise, subject to adjustment hereunder