CARLSBAD, CA - Palisade Bio, Inc. (NASDAQ: PALI), a developer of novel therapeutics for autoimmune and inflammatory diseases, has announced a private placement agreement with an institutional investor for approximately $4 million. The biopharmaceutical company stated on Thursday that it plans to issue 615,242 shares of common stock at $6.5015 per share, with the option for certain pre-funded warrants instead.
The investor will also receive warrants to purchase up to 922,863 additional shares at $6.314 each, exercisable over seven years. The transaction, facilitated by Ladenburg Thalmann & Co. Inc. as the exclusive placement agent, is anticipated to close on or around May 6, 2024, subject to customary conditions.
Palisade Bio intends to allocate the net proceeds for working capital and general corporate purposes. The securities offered in this private placement have not been registered under the Securities Act of 1933 and are therefore subject to restrictions on their resale in the U.S. The company has committed to filing a registration statement for the resale of these shares within 10 days post-closing and will endeavor to have it declared effective within 60 days.
This press release does not constitute an offer to sell the securities, nor a solicitation for their purchase in any jurisdiction where such action would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
The information provided is based on a press release statement from Palisade Bio.
InvestingPro Insights
Amidst the recent private placement agreement, Palisade Bio, Inc. (NASDAQ: PALI) has shown a mix of financial signals that could be of interest to investors. With a market capitalization of just $6.03 million, the company is considered a micro-cap stock, often appealing to investors looking for high growth potential in the biopharmaceutical sector.
InvestingPro data shows that PALI holds a price-to-book ratio of 0.53 as of the last twelve months ending Q4 2023, suggesting that the company's market value is relatively low compared to its book value. This could indicate that the stock is undervalued, particularly if the company's assets are solid.
Yet, the company’s financial performance has been challenging, with a reported operating income margin of -5138.0% and an EBITDA growth of 16.12% in the same period. These figures reflect the high costs and investments often associated with the development of novel therapeutics, which can weigh on profitability for companies in the early stages of growth like Palisade Bio.
InvestingPro Tips for PALI highlight that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable this year. Additionally, PALI's liquid assets exceed its short-term obligations, which could provide some financial flexibility in the near term.
For investors interested in deeper analysis, there are additional InvestingPro Tips available for Palisade Bio, which can be found at: https://www.investing.com/pro/PALI. To explore these insights further, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.