Polyrizon raises $17 million in private placement

RAANANA, ISRAEL - Polyrizon Ltd. (NASDAQ: PLRZ), a biotech company known for its hydrogel technology, has successfully completed a private placement, securing approximately $17 million through the sale of Ordinary Shares and investor warrants - a significant amount considering the company’s current market capitalization of $1.55 million. The transaction, which closed today, involved 35,416,667 Ordinary Units at a price of $0.48 each, with each unit comprising one Ordinary Share or Pre-Funded Warrant, and one Series A Warrant. According to InvestingPro data, the stock has declined over 76% in the past six months, with the current share price at $0.36.

The Series A Warrants, exercisable at $1.20 per share, are valid for a term of 30 months post-shareholder approval, with an adjustment mechanism detailed in a forthcoming Form 6-K report. Pre-Funded Warrants can be exercised at any time once approved, at a nominal exercise price. Aegis Capital Corp. served as the exclusive placement agent, while Greenberg Traurig, P.A. provided counsel to Polyrizon, and Kaufman & Canoles, P.C. to Aegis Capital.

Polyrizon intends to allocate the net proceeds from this offering to general corporate purposes and working capital. InvestingPro analysis shows the company maintains a strong current ratio of 10.16, with more cash than debt on its balance sheet, suggesting solid short-term liquidity. This private placement was exclusive to accredited investors, with the securities not registered under the Securities Act of 1933, thus limiting their resale in the U.S. without registration or an exemption. Polyrizon has committed to filing registration statements for the resale of the shares and shares issuable upon exercise of the warrants.

Specializing in intranasal hydrogel products, Polyrizon’s Capture and Contain™ (C&C) technology creates a barrier in the nasal cavity to protect against viruses and allergens. Their Trap and Target™ (T&T) technology is in pre-clinical development for delivering active pharmaceutical ingredients nasally.

The information presented in this article is based on a press release statement from Polyrizon Ltd. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, Polyrizon Ltd. announced a private placement agreement with institutional investors, securing approximately $17 million through the sale of Ordinary Shares and investor warrants. This funding will support general corporate purposes and working capital. Additionally, Polyrizon has formulated its clinical strategy for PL-14, an intranasal allergy blocker, as it prepares for a pre-submission meeting with the FDA. The company plans to initiate clinical trials in the United States and Europe between late 2025 and early 2026.

Furthermore, Polyrizon has begun preclinical studies for an intranasal delivery system for Benzodiazepines, aimed at treating acute repetitive seizures, in collaboration with Professor Fabio Sonvico from the University of Parma. The company is also advancing its preclinical studies for an intranasal formulation of Naloxone, which is critical for reversing opioid overdoses. In another development, Polyrizon has entered a partnership with an unnamed biotech company to develop an intranasal formulation for psychedelic-based treatments.

These recent developments highlight Polyrizon’s efforts in expanding its intranasal delivery technologies across various therapeutic areas. The company’s Trap and Target™ (T&T) platform is central to these initiatives, which aim to enhance drug delivery efficacy and safety. Polyrizon’s collaborations and strategic plans underscore its commitment to advancing its proprietary hydrogel technology for nasal delivery applications.

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