---
schema_version: "secwatch.filing_event.v1"
accession: "0001628280-23-025293"
form_type: "8-K"
ticker: "AVTX"
cik: "0001534120"
company_name: "Avalo Therapeutics, Inc."
filed_at: "2023-07-21T23:59:59+00:00"
generated_at: "2026-06-13T04:55:16.534755+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "medium"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001628280-23-025293
- form_type: 8-K
- ticker: AVTX
- cik: 0001534120
- company_name: Avalo Therapeutics, Inc.
- filed_at: 2023-07-21T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: medium
- sec_items: 1.01, 2.04, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1534120/000162828023025293/0001628280-23-025293-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1534120/000162828023025293/avtx-20230720.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001628280-23-025293
- JSON: https://secwatch.observer/filing/0001628280-23-025293.json
- Plain text: https://secwatch.observer/filing/0001628280-23-025293.txt

## Key facts
- Material Agreements
  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
  source text: 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”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1534120/000162828023025293/0001628280-23-025293-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.