Polyrizon Ltd. Announces $17.0 Million Private Placement

Rhea-AI Summary

Polyrizon (NASDAQ: PLRZ) has secured a $17.0 million private placement through definitive agreements with institutional investors. The offering includes 35,416,667 Ordinary Units priced at $0.48 per unit, consisting of either Ordinary Shares or Pre-Funded Warrants, plus Series A Warrants.

Each Series A Warrant, exercisable after shareholder approval, has an initial exercise price of $1.20 per Ordinary Share with a 30-month term. Pre-Funded Warrants are priced at $0.47999 with a $0.00001 exercise price. The transaction is expected to close around April 1, 2025.

The company plans to use the proceeds for general corporate purposes and working capital. Aegis Capital Corp. serves as the exclusive placement agent. The securities are being sold in a private placement to accredited investors and will require registration for resale.

Positive

• Secured substantial $17.0 million in new funding
• Institutional investors participation indicates confidence
• Warrants provide potential for additional future funding at $1.20 per share

Negative

• Significant dilution to existing shareholders through 35.4M new units
• Low offering price of $0.48 per unit
• Additional dilution possible through warrant exercises

Insights

Financial Analyst

Polyrizon's $17 million private placement represents a significant capital infusion for this biotechnology company. The transaction is structured at $0.48 per unit, essentially at the current market price, indicating strong investor confidence rather than a distressed capital raise which would typically come at a steep discount.

The financing package includes Series A warrants with an exercise price of $1.20 - approximately 150% higher than the current share price. This structure suggests institutional investors are anticipating substantial upside potential in Polyrizon's intranasal hydrogel technology platform.

While the company hasn't provided specific allocation plans for the proceeds beyond "general corporate purposes and working capital," this financing immediately strengthens Polyrizon's balance sheet and provides operational runway. For a biotech company, having sufficient capital for continued R&D operations is critical.

The involvement of Aegis Capital as placement agent adds credibility to the transaction, indicating the deal underwent professional market validation. The private placement format allows the company to raise capital efficiently without the extended timelines of a public offering.

While the issuance of 35.4 million units will create dilution for existing shareholders, the company's ability to secure institutional investment at market price demonstrates financial market confidence in Polyrizon's business model and technology platform. The pre-funded warrant structure also provides flexibility for institutional investors regarding timing of equity ownership.

RAANANA, ISRAEL, March 31, 2025 (GLOBE NEWSWIRE) -- Polyrizon Ltd. (NASDAQ: PLRZ) (the “Company”), a biotech company specializing in innovative intranasal hydrogels, today announced that it has entered into definitive agreements with institutional investors for the purchase and sale of approximately $17.0 million of Ordinary Shares and/or pre-funded and investor warrants at a price of $0.48 per Ordinary Unit.

The offering consists of the sale of 35,416,667 Ordinary Units (or Pre-Funded Units), each consisting of (i) one (1) Ordinary Share or Pre-Funded Warrant, and (ii) one (1) Series A Warrant to purchase one (1) Ordinary Share per warrant. The offering price per Ordinary Unit is $0.48 (or $0.47999 for each Pre-Funded Unit, which is equal to the offering price per Ordinary Unit sold in the offering minus an exercise price of $0.00001 per Pre-Funded Warrant). The Pre-Funded Warrants will be exercisable following shareholder approval and may be exercised at any time until exercised in full. For each Pre-Funded Unit sold in the offering, the number of Ordinary Units in the offering will be decreased on a one-for-one basis. The initial exercise price of each Series A Warrant is $1.20 per Ordinary Share or pursuant to an alternative cashless exercise option. The Series A Warrants are exercisable following shareholder approval and will have a term of 30 months. The number of securities issuable under the Series A Warrants is subject to adjustment as described in more detail in the report on Form 6-K to be filed in connection with the offering.  

Aggregate gross proceeds to the Company are expected to be approximately $17.0 million. The transaction is expected to close on or about April 1, 2025, subject to the satisfaction of customary closing conditions. The Company expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital.

Aegis Capital Corp. is acting as exclusive placement agent for the private placement. Greenberg Traurig, P.A. is acting as counsel to the Company. Kaufman & Canoles, P.C. is acting as counsel to Aegis Capital Corp.

The securities described above are being sold in a private placement transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the Ordinary Shares and the Shares issuable upon exercise of the pre-funded warrants and warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy 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 Polyrizon Ltd.

Polyrizon is a development stage biotech company specializing in the development of innovative medical device hydrogels delivered in the form of nasal sprays, which form a thin hydrogel-based shield containment barrier in the nasal cavity that can provide a barrier against viruses and allergens from contacting the nasal epithelial tissue. Polyrizon’s proprietary Capture and Contain TM, or C&C, hydrogel technology, comprised of a mixture of naturally occurring building blocks, is delivered in the form of nasal sprays, and potentially functions as a “biological mask” with a thin shield containment barrier in the nasal cavity. Polyrizon are further developing certain aspects of our C&C hydrogel technology such as the bioadhesion and prolonged retention at the nasal deposition site for intranasal delivery of drugs. Polyrizon refers to its additional technology, which is in an earlier stage of pre-clinical development, that is focused on nasal delivery of active pharmaceutical ingredients, or APIs, as Trap and Target ™, or T&T. For more information, please visit https://polyrizon-biotech.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the timing and completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report filed with the SEC on March 11, 2025 and subsequent filings with the SEC. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Polyrizon is not responsible for the contents of third-party websites.

Michal Efraty
Investor Relations
IR@polyrizon-biotech.com

FAQ

What is the size and price of Polyrizon's (PLRZ) private placement announced in March 2025?

Polyrizon secured a $17.0 million private placement with institutional investors at $0.48 per Ordinary Unit, consisting of 35,416,667 units.

What are the terms of PLRZ's Series A Warrants in the March 2025 offering?

Series A Warrants have a $1.20 initial exercise price, 30-month term, and become exercisable after shareholder approval.

When is the expected closing date for Polyrizon's (PLRZ) $17M private placement?

The transaction is expected to close on or about April 1, 2025, subject to customary closing conditions.

How will Polyrizon (PLRZ) use the proceeds from its March 2025 private placement?

Polyrizon plans to use the net proceeds for general corporate purposes and working capital.

What is the structure of PLRZ's Pre-Funded Warrants in the March 2025 offering?

Pre-Funded Warrants are priced at $0.47999 with a $0.00001 exercise price, exercisable after shareholder approval.