On August 29, 2022, Allena Pharmaceuticals, Inc., entered into a settlement agreement with Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P. (collectively, referred to as the “Lenders”), in connection with which the Company agreed to pay the Lenders $1.4 million in full satisfaction of all amounts outstanding under that certain Loan and Security Agreement with the Lenders dated September 29, 2020 (the “Loan Agreement”). The Settlement Agreement included a customary release of claims and a release of all liens arising under the Loan Agreement. In connection with the Settlement Agreement, the Company agreed to make certain additional payments to the Lenders in the event the Company pays certain other creditors of the Company more than 25% of the amount currently owed to such creditors.

In addition, prior to any distribution or payment of any kind being made on account of any of the Company's equity interests, other than non-cash distributions in connection with any reverse merger, the Company agreed to first pay to the Lenders all amounts that would otherwise be outstanding under the Loan Agreement had the Settlement Agreement not been entered into, including any interest, fees and charges that would otherwise have accrued, after giving effect to any payments previously made.