Palisade Bio Announces Closing of Upsized $138 Million Public Offering of Common Stock and Including Full Exercise of Over-Allotment Option

Rhea-AI Summary

Palisade Bio (Nasdaq: PALI) announced closing an upsized public offering on October 2, 2025 that raised approximately $138 million in gross proceeds, including full exercise of the underwriter’s over-allotment option. The offering comprised 197,154,844 shares at a public offering price of $0.70 per share. Proceeds will support the upcoming Phase 2 clinical program for PALI-2108 in ulcerative colitis. Ladenburg Thalmann served as sole book-running manager. SEC registration statements (Form S-1 File Nos. 333-290568 and 333-290644) were effective Sept 30 and Oct 1, 2025.

Positive

• Gross proceeds of ~$138 million raised
• Issued 197,154,844 shares in the offering
• Proceeds allocated to Phase 2 PALI-2108 in ulcerative colitis
• Full exercise of underwriter over-allotment confirms demand

Negative

• Issuance of 197,154,844 shares increases outstanding share count and dilutes existing holders
• Securities sold at $0.70 per share, a new market reference price for this issuance

Insights

Capital Markets & Clinical Development Analyst

Palisade raised $138M to fund its Phase 2 program for PALI-2108, backed by institutional investors.

This funding round closed with gross proceeds of $138 million via the sale of 197,154,844 shares at $0.70 each, including full exercise of the over-allotment option.

The syndicate includes lead investors B Group Capital and Columbia Threadneedle Investments, plus several healthcare-focused firms, providing both capital and external validation for the program.

Monitor the start and reported milestones of the Phase 2 clinical development program for PALI-2108, as the company stated proceeds will specifically support that program.

Offering was led by B Group Capital and Columbia Threadneedle Investments with significant participation from Adage Capital Partners LP, ADAR1 Capital Management, Boxer Capital Management, Coastlands Capital, Deep Track Capital, Janus Henderson Investors, Octagon Capital, Perceptive Advisors, RA Capital Management, Squadron Capital Management, and a large healthcare dedicated mutual fund

Proceeds to support upcoming Phase 2 clinical development program for PALI-2108 in Ulcerative Colitis

Carlsbad, CA, Oct. 02, 2025 (GLOBE NEWSWIRE) -- Palisade Bio, Inc. (Nasdaq: PALI) (“Palisade”, “Palisade Bio”, or the “Company”), a clinical-stage biopharmaceutical company advancing novel therapeutics for patients living with autoimmune, inflammatory, and fibrotic diseases, today announced the closing of its previously announced underwritten public offering of gross proceeds of approximately $138 million, prior to deducting underwriting discounts and commissions and other estimated offering expenses, including full exercise of the underwriter’s over-allotment option to purchase additional shares of common stock.

“We are very pleased to have the support of such high-quality, experienced investors who share our vision for the company,” said J.D. Finley, CEO of Palisade Bio. “Their confidence underscores both the promise of our science and the potential of PALI-2108, our first-in-class, ileocolonic-targeted PDE4 B/D inhibitor, to address significant unmet medical needs in IBD. This financing not only validates the strength of our lead program but also allows us to execute a more robust and comprehensive development plan. With these resources, we are well positioned to accelerate our progress and maximize the value to our shareholders.”

Ladenburg Thalmann & Co. Inc. acted as the sole book-running manager for the offering.

The offering was comprised of 197,154,844 shares of its common stock (or common stock equivalents) at a public offering price of $0.70 per share (or $0.6999 per common stock equivalent).

The offering is being made pursuant to a registration statement on Form S-1 (File No. 333-290568) relating to the offering of these securities was declared effective by the Securities and Exchange Commission (the “SEC”) on September 30, 2025 and an additional registration statement on Form S-1MEF (File No. 333-290644) filed pursuant to Rule 462(b), which was filed on October 1 2025, which became effective upon filing. Copies of the final prospectus related to the offering can be obtained from: Ladenburg Thalmann & Co. Inc. at 640 Fifth Avenue, 4^th Floor, New York, New York 10019, by calling (212) 409-2000, or by emailing prospectus@ladenburg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Palisade Bio 

Palisade Bio is a clinical-stage biopharmaceutical company focused on developing and advancing novel therapeutics for patients living with autoimmune, inflammatory, and fibrotic diseases. The Company believes that by using a targeted approach with its novel therapeutics it will transform the treatment landscape. For more information, please go to www.palisadebio.com.

Forward Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements relating to the expected timing of the Company’s clinical studies of PALI-2108, the potential of PALI-2108 to treat IBD; the anticipated use of proceeds, and quotes from management. The words, without limitation, “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the timing of enrollment, commencement and completion of the Company’s clinical trials; the Company’s reliance on PALI-2108, and its early stage of clinical development; the risk that prior results, such as signals of safety, clinical response, clinical efficacy, activity, dosing or durability of effect, observed from preclinical or clinical trials, will not be replicated or will not continue in ongoing or future studies or clinical trials involving the Company’s product candidates in clinical trials focused on the same or different indications; and other factors that are described in the “Risk Factors” section of the prospectus that forms a part of the effective registration statement filed with the SEC, including our filings incorporated by reference in such registration statement. Any forward-looking statements contained in this press release are based on the current expectations of Palisade’s management team and speak only as of the date hereof, and Palisade specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Relations Contact

JTC Team, LLC
Jenene Thomas
908-824-0775
PALI@jtcir.com

FAQ

How much did Palisade Bio (PALI) raise in the October 2, 2025 offering?

Palisade raised approximately $138 million in gross proceeds, including full exercise of the over-allotment option.

How many shares did PALI issue in the upsized public offering on October 2, 2025?

The offering comprised 197,154,844 shares of common stock (or common stock equivalents).

What was the public offering price per share for PALI on Oct 2, 2025?

The public offering price was $0.70 per share (or $0.6999 per common stock equivalent).

What will Palisade Bio use the $138M proceeds for (PALI)?

Proceeds will support the company’s upcoming Phase 2 clinical development program for PALI-2108 in ulcerative colitis.

Who led the PALI public offering and acted as book-running manager?

The offering was led by B Group Capital and Columbia Threadneedle Investments; Ladenburg Thalmann was sole book-running manager.

Are SEC registration statements for the PALI offering effective and what are the file numbers?

Yes. Form S-1 File No. 333-290568 was declared effective Sept 30, 2025; Form S-1MEF File No. 333-290644 was filed Oct 1, 2025.