Entasis Therapeutics Holdings Inc. announced that it has entered into securities purchase agreement with Innoviva Strategic Opportunities LLC for the issuance of convertible promissory note having a principal amount of $15,000,000 on February 17, 2022. The convertible note will mature on August 18, 2022. The note will bear interest rate of 0.59% per annum.

The note is convertible at maturity at the election of the company or investor into shares of the company, at a conversion price of $1.48 per share of common stock and warrants to purchase an equal number of shares of common stock with an exercise price of $1.48 per share of common stock. The convertible notes are convertible if the company engages in certain capital markets transactions, asset sales or royalty transactions or if the company is acquired prior to the maturity date of the convertible note, the convertible note will be paid in cash at the time of acquisition. The company will issue securities in reliance on an exemption from the registration requirements of the Securities Act of 1933, pursuant to Section 4(a)(2) of the Securities Act.