Palisade Bio Announces Closing of $4 Million Private Placement Priced At-The- Market Under Nasdaq Rules

Carlsbad, CA, May 07, 2024 (GLOBE NEWSWIRE) -- Palisade Bio, Inc. (Nasdaq: PALI), a biopharmaceutical company focused on developing and advancing novel therapeutics for patients living with autoimmune, inflammatory, and fibrotic diseases, is announcing today that it has closed its previously announced private placement with an institutional investor for the purchase of 615,242 shares of common stock (or certain pre-funded warrants in lieu thereof) for gross proceeds of approximately $4 million, before deducting placement agent fees and other offering expenses payable by the Company.

Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent for the offering.

The company intends to use the net proceeds from the offering for the continued development of its lead asset, PALI-2108, and for working capital and general corporate purposes.

The company also issued to the investor unregistered warrants to purchase up to 922,863 shares of common stock (the “Common Warrants”). The Common Warrants have a term of seven (7) years and an exercise price of $6.314 per share.

The shares of common stock, pre-funded warrants, and Common Warrants (and the shares of common stock underlying such pre-funded warrants and Common Warrants) were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and/or Regulation D promulgated thereunder, and such securities have not been registered under the Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. The company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock and shares of common stock issuable upon the exercise of the pre-funded warrants and Common Warrants no later than 10 calendar days following the closing and to use its best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 60 days after the date of such agreement.