Following the announcement of an equity transaction, Palisade Bio Inc. (NASDAQ: PALI) shares increased 26.09% to $4.06 in Friday’s premarket session.
Which contract has PALI signed?
In a registered direct offering and simultaneous private placement, Palisade Bio (PALI) announced today that it has signed a consent solicitation with investment firms for the purchase of 1,052,631 shares of common stock (or specific pre-funded warrants in lieu thereof) at a price of $2.375 per share. In lieu of common stock, certain investors will receive Palisade Bio’s unregistered pre-funded warrants in the private placement, subject to restrictions on beneficial ownership.
Additionally, PALI has agreed to provide the investors in the private placement with unregistered rights (the “Common Warrants”) to buy up to 1,052,631 shares of its common stock. The exercise price for these common warrants, which have a duration of five years, is $2.375 per share.
As a result, PALI signed contracts to sell a total of 513,842 shares of registered common stock, as well as pre-funded warrants to buy common stock, as well as 538,789 shares of unregistered common stock, and 1,052,631 unregistered common warrants. PALI anticipates that the offering will close on or around January 4, 2022, pending the fulfillment of the usual closing requirements.
PALI gave an update on a clinical trial:
PALI has published an update on its U.S. Phase 2 research assessing LB1148 for lowering intra-abdominal adhesions in participants after elective bowel resection (PROFILE). Palisade Bio (PALI) is voluntarily stopping participation in the study because it considers the data gathered so far is enough for its analysis purpose, including an assessment of its risk profile.
In the first half of 2023, Palisade anticipates reporting topline findings from the 35 patients. PALI is dedicated to advancing LB1148’s development in a way that will best position the firm to bring patient benefit and, eventually, approval. PALI is still inspired by the evidence shown by LB1148.