Ayala Pharmaceuticals Inc (ADXS)

[williamjay]

I spoke with Noelle yesterday as well and can confirm what Blue has stated. Also, Advaxis realized this was not the best time to raise money. But, if they did not do this, the company would have been labeled with an "Going Concern" disclaimer. If that happened and they tried to raise money, there would have been a 50% discount applied to the new offering. I have a friend who owns stock in Advaxis and is an expert in this area and explained this to me. I also suspect that some of the funds who participated in the offering would not buy shares in the open market. I was told the offering was oversubscribed and major health care funds participated. The company is seeking permission to use these companies names in a press release. My friend also believes that Advaxis still has a "Going Concern" issue. I would not be surprised to see Advaxis raise non-dilutive money prior to the shareholders meeting to address this issue. I think a restructuring of the Amgen deal is a possibility. Whoever does this deal may have required that Advaxis to do this raise as part of the deal to make certain the company has sufficient funds going forward. Also, if they raise enough money for a two-year runway, they will show that they have addressed their cash flow needs and there is no immediate need to issue more shares. But, the BOD would want the authorized shares for flexibility. If they are able to raise sufficient non-dilutive funds, I think they should get the votes to support the proxy. The tutes participating in this most recent offering have no votes for the meeting and will not impact the proxy. I also expect a new CEO in short order, certainly before the annual meeting.