Palisade Bio prices $120 million public offering at $0.70 per share

CARLSBAD, Calif. - Palisade Bio, Inc. (NASDAQ:PALI), currently trading near InvestingPro’s Fair Value estimate, announced Wednesday it has priced an underwritten public offering of 171,440,559 shares of its common stock at $0.70 per share, expecting to raise approximately $120 million in gross proceeds. The stock has shown strong momentum, gaining over 25% in the past week.

The clinical-stage biopharmaceutical company, which focuses on developing therapeutics for autoimmune, inflammatory, and fibrotic diseases, has also granted underwriters a 45-day option to purchase up to an additional 25,714,285 shares at the public offering price. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though analysts project continued losses for the current fiscal year.

Ladenburg Thalmann & Co. Inc. is serving as the sole book-running manager for the offering, which is expected to close on or about October 2, 2025, subject to customary closing conditions.

The offering comes after the Securities and Exchange Commission declared effective a registration statement on Form S-1 on September 30, with an additional registration statement filed pursuant to Rule 462(b) becoming effective on October 1.

The announcement did not specify how the company plans to use the proceeds from the offering.

Palisade Bio’s stock offering represents a significant capital raise for the Nasdaq-listed company, which describes itself as focused on transforming the treatment landscape through targeted therapeutics.

This information is based on a press release statement from the company.

In other recent news, Palisade Bio announced positive clinical data for its drug PALI-2108, targeting ulcerative colitis. In Phase 1b testing, all five patients responded positively, with two achieving clinical remission after just seven days. The study also reported significant reductions in various medical indices, indicating promising results. Meanwhile, the company adjourned its special stockholder meeting due to a lack of quorum, with fewer than one-third of shares represented. The meeting is rescheduled to reconvene on October 10, 2025. Additionally, Palisade Bio introduced a new Phantom Unit Plan, allowing for up to 10,000,000 cash-settled phantom units to be granted to employees, directors, and consultants. This plan was adopted without requiring shareholder approval and will be effective for ten years. These developments reflect the company’s ongoing strategic and operational activities.

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