Palisade Bio’s (NASDAQ:PALI) stock rose more than 61% on Friday after the company disclosed plans to raise $2.5 million. The clinical-stage biopharmaceutical company engages in the development of therapeutics that protect the integrity of the intestinal barrier.
The company stated that institutional investors have agreed to buy 1,052,631 shares of its common stock in a registered direct offering and concurrent private placement. The purchase price per common share is $2.375.
Moreover, Palisade will be issuing investors unregistered warrants to purchase up to 1,052,631 shares of PALI stock at the same price. The warrants are set to expire in five years.
On completion of customary closing conditions, the direct offering is expected to close by January 4. Palisade seeks to use the net proceeds for working capital and general corporate purposes.
Ending Thoughts
The company has been making progress in the development of its LB1148 product candidate. Palisade expects to report topline data from 35 patients in the first half of 2023. In November 2022, LB1148 received a fast-track designation from the U.S. Food and Drug Administration.
The release of positive data from the LB1148 trial is expected to give the stock a solid boost. Over the past three months, PALI stock has gained 6.6%.
