Avalo enters forbearance on venture debt default and signs non-binding LOI to sell 800 series for $150K upfront

Avalo Therapeutics, Inc.

Forbearance until Aug 15, 2023; company must keep cash >= $3M plus 100% of future equity proceeds.
Preliminary cash and equivalents ~$4.5M as of July 20, 2023 (unaudited).
Non-binding LOI to sell AVTX-801, -802, -803 for $150K upfront, up to $45M in FDA approval milestones.
Holders asserted default due to material adverse change; forbearance halts enforcement until mid-August.

item 1.01 item 2.04 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Avalo Therapeutics, Inc. entered into Forbearance Agreement with the Holders (effective 2023-07-20).

Action: entry
Agreement: credit facility
Counterparty: the Holders
Effective: 2023-07-20

Exact text from the filing

As of July 20, 2023, the Holders asserted that a default and event of default has occurred due to a material adverse change in the Company’s business (the “Existing Default”).

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Avalo Therapeutics, Inc. filing history →

Source: SEC EDGAR

accession 0001628280-23-025293

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