Palisade Bio sells $3.0 million of stock to an affiliate of Iterative Health

Palisade Bio, Inc. (Nasdaq: PALI) sold 1,536,885 shares of common stock to an affiliate of Iterative Scopes, Inc., doing business as Iterative Health (IH), for a total purchase price of $3.0 million. The sale closed on March 27, 2026, according to an 8-K dated April 2, 2026. The company also entered into a master services agreement with Iterative Health on March 30, 2026. Under that agreement, Iterative Health agreed to assist with enrollment in the planned Phase 2 ulcerative colitis study of PALI-2108.

The share sale

The company sold the shares under a common stock purchase agreement dated March 27, 2026. The price was $1.952 per share, which the filing says is the average closing price of the common stock on the Nasdaq Capital Market for the five trading days before the closing date. The shares were sold in a transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933. The filing names no underwriter or placement agent.

The 8-K describes the investor as an affiliate of Iterative Health. It does not describe any other terms of the share sale.

The master services agreement

The company said it is preparing for the expected Phase 2 study of PALI-2108 in patients with moderate to severe ulcerative colitis. To expedite the enrollment of those patients, the company entered into the master services agreement with Iterative Health. The 8-K says that under the agreement, Iterative Health agreed, among other things, to assist the company with that enrollment.

The 8-K contains forward-looking statements about the company's plans for the Phase 2 UC study and the enrollment of patients. It refers readers to the risk factors in the company's annual report on Form 10-K for 2025, filed March 20, 2026.

The planned study

The company's 10-K describes PALI-2108 as a once-daily oral prodrug designed for targeted delivery of PDE4 inhibition to the terminal ileum and colon. The prodrug is pharmacologically inactive until bacterial enzymes in the lower intestine convert it into the active inhibitor at sites of inflammation and fibrosis. The company says this approach is designed to reduce the tolerability limitations of systemic PDE4 inhibitors.

The company plans a Phase 2 study in UC designed to evaluate clinical remission response and pharmacodynamic biomarkers over 12 weeks, with an extension phase assessing maintenance of remission. The company is also developing a biomarker-based approach to patient selection, with the aim of developing regulatory-approved tests.

The Phase 1 program

The Phase 1 clinical study of PALI-2108 was a single-center, randomized, double-blinded, placebo-controlled trial focused on safety, tolerability and pharmacokinetics in healthy volunteers and UC patients. Health Canada issued a No Objection Letter for the study on October 9, 2024.

Financial position

The company's financial data shows a net loss of $16.8 million for 2025, compared with $14.4 million for 2024. Research and development expense was $16.0 million for 2024. Cash used in operations was $10.8 million in 2025 and $12.2 million in 2024. Year-end cash and cash equivalents were $9.8 million at December 31, 2024.

What comes next

The $3.0 million is small against the $10.8 million of cash the company used in operations in 2025, and the sale put 1,536,885 new shares into the count. The filing gives no fee for the services agreement, so the cost of the enrollment help is not known, and the same counterparty is both an investor and a vendor. The company said the enrollment work under the master services agreement is intended to speed up patient enrollment for the Phase 2 UC study. The filing does not give a start date for that study. The company's 10-K says it intends to advance PALI-2108 toward the Phase 2 study in UC.

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