Palisade Bio Completes $4M Private Placement at Market Price

Palisade Bio, Inc., a biopharmaceutical firm based in Carlsbad, CA, announced the successful closure of a private placement with an institutional investor. The transaction involved the purchase of 615,242 shares of common stock, or certain pre-funded warrants as substitutes, generating gross proceeds of approximately $4 million. This amount is subject to deductions for placement agent fees and other offering expenses. Ladenburg Thalmann & Co. Inc. served as the exclusive placement agent for this transaction.

The funds raised will primarily be allocated towards the ongoing development of Palisade Bio's lead therapeutic candidate, PALI-2108, as well as for general corporate purposes and working capital. In addition to the common stock and pre-funded warrants, the company also issued unregistered warrants to the investor for the purchase of up to 922,863 shares of common stock. These common warrants come with a seven-year term and an exercise price of $6.314 per share.

The shares of common stock, pre-funded warrants, and common warrants, including the shares of common stock underlying these instruments, were all offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D. These securities have not been registered under the Act or any applicable state securities laws, which means they cannot be offered or sold in the United States without proper registration or an applicable exemption from the registration requirements.

Palisade Bio has committed to filing a registration statement with the Securities and Exchange Commission (SEC) to register the resale of the shares of common stock and those issuable upon the exercise of the pre-funded and common warrants. This filing is expected to be made no later than ten calendar days following the closing of the transaction, and the company will strive to have the registration statement declared effective as soon as possible, ideally within 60 days of the agreement date.

Palisade Bio is dedicated to developing innovative therapeutics aimed at treating patients with autoimmune, inflammatory, and fibrotic diseases. By employing a targeted approach with its novel therapies, the company aims to significantly alter the treatment landscape for these conditions.