Palisade Bio Secures $3.9M in Funding Through Warrant Inducement Agreement

Palisade Bio entered a warrant inducement agreement with an accredited holder to exercise existing warrants at a reduced price of $0.9047 per share, resulting in the issuance of 4,318,905 shares of common stock and generating approximately $3.9 million in gross proceeds. The agreement includes the issuance of new warrants for additional shares, subject to stockholder approval, and aims to provide working capital and support corporate purposes.

Palisade Bio, a clinical-stage biopharmaceutical company focused on developing novel therapeutics for autoimmune, inflammatory, and fibrotic diseases, has entered into a warrant inducement agreement with an accredited holder. The agreement allows the holder to exercise existing warrants at a reduced price of $0.9047 per share, resulting in the issuance of 4,318,905 shares of common stock and generating approximately $3.9 million in gross proceeds [1].

The agreement includes the issuance of new warrants for additional shares, subject to stockholder approval. These new warrants are part of the company's strategy to secure working capital and support its corporate purposes. Ladenburg Thalmann & Co. Inc. is acting as the exclusive placement agent for this transaction.

The most recent analyst rating on Palisade Bio's stock (PALI) is a Buy with a $22.50 price target. However, Spark, TipRanks' AI Analyst, rates PALI as Neutral, noting significant financial struggles and consistent losses as key concerns [2].

Palisade Bio plans to use the net proceeds from the offering for working capital and general corporate purposes. The company also intends to file a registration statement with the SEC covering the resale of shares associated with the Replacement Warrants, enhancing transparency and accessibility for investors.

References:
[1] https://www.tipranks.com/news/company-announcements/palisade-bio-enters-warrant-inducement-agreement
[2] https://www.nasdaq.com/articles/palisade-bio-inc-announces-agreement-exercise-existing-warrants-and-raise-approximately-39