On April 3, 2023 Palisade Bio, Inc. (Nasdaq: PALI), a biopharmaceutical company advancing therapies for acute and chronic gastrointestinal (GI) complications, reported that it has entered into definitive agreements with institutional investors for the purchase of 2,272,723 shares of common stock (or certain pre-funded warrants in lieu thereof) in a registered direct offering and concurrent private placement, at a purchase price per share of $2.64 (Press release, Palisade Bio, APR 3, 2023, View Source [SID1234629839]). Certain investors will receive a portion of their investment in unregistered shares or unregistered pre-funded warrants in the private placement in lieu of registered common stock.

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Ladenburg Thalmann & Co. Inc. is acting as the exclusive placement agent for the registered direct and private placement offerings.

Palisade Bio intends to use the net proceeds from the financing for working capital and general corporate purposes.

The company has also agreed to issue to the investors, in a private placement, unregistered warrants to purchase up to 2,272,723 shares of common stock (the "Common Warrants"). These Common Warrants will have a term of five (5) years and an exercise price of $2.64 per share. Accordingly, the company entered into agreements to sell (i) an aggregate of 756,317 shares of registered common stock, (ii) an aggregate of 1,516,406 shares of unregistered common stock and unregistered pre-funded warrants to purchase common stock, and (iii) 2,272,723 unregistered Common Warrants. The closing of the offering is expected to take place on or about April 5, 2023, subject to the satisfaction of customary closing conditions.

The shares of common stock (but not the unregistered shares of common stock and unregistered pre-funded warrants, nor the Common Warrants or shares of common stock underlying such unregistered pre-funded warrants and Common 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 View Source 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 [email protected].

The unregistered shares of common stock, unregistered pre-funded warrants, the Common Warrants (and the shares of common stock underlying such unregistered pre-funded warrants and Common 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 unregistered shares of common stock and shares of common stock issuable upon the exercise of the unregistered pre-funded warrants and Common Warrants.