Replies to post #94760 on Ayala Pharmaceuticals Inc (fka ADXS)

[Bourbon_on_my_cornflakes]

Dilution coming. The wording in today’s 8-K filing implies that the swap transaction is a prelude to some sort of financing. I've never seen such a maneuver.

Agree. The last transaction was a share and a warrant for $1.25 The math was the share was worth about 85 cents and the warrant 40 cents. What this does is in effect give them 2 shares for their $1.25, or 62 cents each.

So why do this? With a further dilution, the chances of the warrants being valuable in the long run falls. They have probably been sounding out investors in the next dilution, and the people that bought last time said no unless they could get out of the warrants. So the dirty deal to get them on board.

NO surprise, eh? As soon as we get a runup, the dilution hammer falls again at ADXS

[hovacre]

Indeed. That's the only thing that gives me pause in your interpretation of things. However, that does seem like a reasonable explanation, given the current situation ADXS finds itself in with respect to commanding ANY sort of terms for financing.