Benzinga | Aug 20, 2021 09:27AM EDT

Palisade Bio Share Spike Higher; Co Announces $5.2M Investment By Yuma Regional Medical Center

Palisade Bio, Inc. (NASDAQ:PALI) ("Palisade Bio" or the "Company"), a latestage biopharma company advancing therapies for acute and chronic gastrointestinal (GI) complications, today announces a new private investment of approximately $5.2 million from the Yuma Regional Medical Center ("YRMC"), an Arizonabased, notforprofit hospital providing highquality, patientcentered care. The funds will be used to advance the clinical development of Palisade's lead oral liquid drug candidate LB1148, which is being developed to accelerate the return of bowel function after surgery and to reduce postsurgical adhesions.

"There are almost seven million surgeries each year in the United States where patients may benefit from LB1148. The surgical community is still looking for safe therapeutics to improve postoperative bowel function and reduce abdominal adhesions," said Tom Hallam, Ph.D., CEO of Palisade Bio. "If approved, LB1148 may provide an easytoadopt solution to help surgical patients return to GI normalcy faster and help these patients spend less time in the hospital. Investments from endusers like YRMC help validate the excitement for this treatment and its potential impact on patient lives."

Under the terms of the agreement, YRMC purchased 1,509,896 unregistered common shares at a purchase price of $3.45 per share. In addition, YRMC received a fiveyear warrant to purchase an additional 377,474 common shares at $3.45 per share. The Company is required to register the common shares and the shares underlying the warrants within 60 days.

Dr. Bob Trenschel, D.O., M.P.H., Yuma Regional Medical Center's President and CEO added, "With the recent announcement of positive topline Phase 2 data, we are encouraged by the prospects that LB1148 presents to patients, caregivers, and hospitals as a simple and effective way to accelerate GI recovery after surgery. Delayed postsurgical recovery can affect quality of life and increase healthcare costs. As LB1148 has consistently been shown to accelerate the return of GI function in clinical studies with a favorable safety profile, we believe LB1148 may one day be the standard of care for patients undergoing major surgery. This investment is a continuation of our longstanding dedication to clinical research. Our support of Palisade Bio is a testament to a shared commitment to advancing care for patients as the company brings forth new treatment through clinical development."