Ayala Pharmaceuticals Inc (ADXS)

[fbg0316]

Jck, agree that they need a source of non-dilutive financing whether a deal on AXAL or HOT or sale of the company if the terms are attractive.

Keith, agree the timing of TL's call for a new CEO does coincide when they would need to raise more cash to have a year's worth, which still makes me think a sale could be in progress. The implications of another $2 offering would be incredibly harmful to shareholder interests. Think about it, they just sold 20% of the company for $2/$20 million. Doing that again would constitute a kind of death spiral financing in which they company is accepting capital on terrible terms just to keep getting paychecks while investors get diluted to oblivion on terrible terms. I don't think they would have fired O'Connor and put in place a temp CEO with a deal making background for 10 months to do that. I think the $2 offering was necessary to keep the company a going concern from an audit perspective until the sale is finalized, so in effect the larger sale has been agreed on which puts the $2 offering in context of the positive end objective. If I am wrong and the $2 offering is because nothing is in the works and the company is desparate and will be forced to do another $2 offering in June and simply put in a new CEO without any sale, change of control or licensing deal, then we're screwed. I hope and pray that is not the case.