Vallon Pharmaceuticals, Inc. announced that it has entered into a convertible promissory note purchase agreement for gross proceeds of $350,000 on January 11, 2021. The transaction will include participation from returning investor Salmon Pharma Gmbh and chief executive officer of the company, David Baker. The notes bear an interest rate of 7% per annum, non-compounding, and have a maturity date of September 30, 2021. The notes will be convertible at a 20% discount to the price per share offered in such qualified financing. The notes will convert into 48,806 shares of common stock immediately prior to the closing of this offering, assuming a conversion date of February 1, 2021 and an assumed initial public offering price per share of $9.00.