Ayala Pharmaceuticals, Inc. announced a private placement of senior convertible promissory notes for aggregate amount of $4 million on November 17, 2023. The transaction included participation from new investors BioTelemetry, Inc., Israel Biotech Fund I, L.P. and Israel Biotech Fund II, L.P.; funds managed by returning investor Israel Biotech Fund, and returning investor Arkin Bio Venture Partners Ltd. The senior convertible notes were convertible into shares of the common stock at any time at the option of the noteholders, and subject to mandatory conversion upon certain events, at a conversion price equal to the lower of (i) 50% of the common stock?s price per share as of market close on November 16, 2023 and (ii) 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 certain adjustments. The company also issued to the noteholders warrants to purchase an aggregate of 22,500,000 shares of the common stock.

The transaction has been approved by the board of directors of the company.