RDD Pharma Ltd. announced that it has signed a convertible loan agreement for gross proceeds of $2.9 million on July 26, 2016. The transaction will include participation from existing investors, Capital Point Ltd. (TASE:CPTP) for $0.35 million, OrbiMed Israel Partners, a fund managed by OrbiMed Advisors, L.L.C. for $2.5 million, and another shareholder for $0.05 million. The loan will bear a minimum coupon, according to the minimum interest rate possible in reliance with the Tax Authority, from the moment the loan is given until the redemption or its conversion. There will be automatic conversion of the loan before the earliest between; 12 months from the agreement; a redemption event, and loan conversion, and as long as the company completes a capital funding for at least $10 million, the company will convert the loan automatically into shares, at a price per share reflecting a 20% discount than the price per share offered under the investment round, with a minimum price of $55.35 per share. In the case of non-conversion until July 25, 2017, the investors may convert the loan into preferred shares at the minimum share price. In the event of a liquidation/exit event, or in the case of an initial public offering, the loan will be converted automatically to the highest class of preferred shares, at a price reflecting a 20% discount over the price established in the liquidation/exit event.