Full Press Release Details
Palisade Bio Announces $2.0 Million Registered Direct Offering
CARLSBAD, C.A., May 6, 2022 Palisade Bio, Inc. (Nasdaq: PALI) (the Company or Palisade Bio ), a clinical-stage
biopharmaceutical company advancing therapies for acute and chronic gastrointestinal complications, today announced that it has entered into definitive agreements with several institutional and accredited investors for the purchase and sale in a
registered direct offering of 3,646,690 shares of its common stock, at a purchase price of $0.55 per share.
Ladenburg Thalmann & Co. Inc. is
acting as the exclusive placement agent for the offering.
The closings of the sale of the securities in the financing is expected to occur on or about
May 10, 2022, subject to the satisfaction of customary closing conditions. Palisade Bio intends to use the net proceeds from the financing for working capital and general corporate purposes, including the development of the Company s lead
product candidate LB1148.
The Company also agreed to issue to the investors in a concurrent private placement, unregistered warrants to purchase up to an
aggregate of 3,646,690 shares of its common stock. The warrants have an exercise price of $0.7105 per share of common stock, will be exercisable 6 months after the date of issuance, and will expire five and a half years following the initial
The shares of common stock (but not the warrants or the shares of common stock underlying such warrants) offered in the registered direct
offering are being offered and sold by the Company pursuant to a shelf registration statement on Form S-3 (Registration No. 333-263705), including a
base prospectus, previously filed with and declared effective by the Securities and Exchange Commission ( SEC ) on April 26, 2022. The offering of the shares of common stock in the registered direct transaction are being made only by
means of a prospectus supplement that forms a part of the registration statement. A final prospectus supplement and an accompanying base prospectus relating to the registered direct offering will be filed with the SEC and will be available on the
SEC s website located at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained, when available, by contacting Ladenburg Thalmann & Co. Inc. at Attn: Prospectus
Department, 640 Fifth Avenue, 4th Floor, New York, NY 10019 or by e-mail at prospectus@ladenburg.com..
The warrants (and the shares of common stock underlying such warrants) are being 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. Palisade Bio has agreed to file a registration statement with
the SEC registering the resale of the shares of common stock issuable upon the exercise of the warrants.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of
any such jurisdiction.
About Palisade Bio, Inc.
Palisade Bio is a clinical stage biopharmaceutical company advancing therapies that aid patients suffering with acute and chronic gastrointestinal
complications stemming from post-operative digestive enzyme damage. Palisade Bio s lead asset LB1148, advancing toward Phase 3, is a protease inhibitor with the potential to both reduce abdominal adhesions and help restore bowel function
following surgery. Positive data from Phase 2 trials of LB1148 demonstrated safety and tolerability as well as a statistically significant improvement in the return of bowel function and a decrease in the length of stay in the intensive care unit
and hospital compared to placebo. Palisade Bio believes that its investigational therapies have the potential to address the myriad health conditions and complications associated with the chronic disruption to the gastrointestinal epithelial
Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts are forward-looking statements,
including those relating to future events. In some cases, you can identify forward-looking statements by terminology such as may, might, will, should, expect, plan,
anticipate, project, believe, estimate, predict, potential, intend or continue, the negative of terms like these or other comparable terminology, and
other words or terms of similar meaning. These include statements about risks and uncertainties associated with market conditions, the satisfaction of customary closing conditions related to the offering and use of proceeds, as well as risks and
uncertainties associated with the Company s business and financial condition in general, including the risks and uncertainties described in the Company s Annual Report on Form 10-K for the year ended
December 31, 2021, and in the Company s other filings with the SEC, including its Quarterly Reports on Form 10-Q. Although the Company believes that it has a reasonable basis for forward-looking
statements contained herein, they are based on current expectations about future events affecting the Company and are subject to risks, uncertainties and factors relating to its operations and business environment, all of which are difficult to
predict and many of which are beyond its control. These risk factors include those risks associated with developing pharmaceutical product candidates, risks of conducting clinical trials and risks in obtaining necessary regulatory approvals, as well
as those risks detailed in the Company s filings with the SEC. These risks may cause actual results to differ materially from those expressed or implied by forward-looking statements in this press release. All forward-looking statements
included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company
does not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.