Palisade Bio Stock Climbs To 9-Month High After $120M Stock Offering; Retail Sees More Gains Ahead

Retail traders piled into Palisade Bio on Wednesday after the biotech company said it would raise approximately $120 million from an underwritten public offering.

The stock soared 52.4% on Wednesday to close at $0.45, marking its best session in more than nine months, and gained another 9.5% in after-hours trading.

Palisade will offer approximately 171.4 million shares of its common stock, or its equivalent, at $0.70 per share. The underwriters also have an option to purchase about 25.7 million shares at $0.70 for a period of 45 days. Ladenburg Thalmann & Co. Inc. is leading the process, which is expected to close on October 2.

The company further stated that the proceeds from the deal will be used to fund its drug pipeline, targeting autoimmune, inflammatory, and fibrotic conditions.

The fresh fundraising follows a series of recent developments on the drug development front. Last month, Palisade reported positive early-stage data from its experimental drug PALI-2108 in the treatment of inflammatory bowel diseases. In a small ulcerative colitis trial, the treatment was found to improve outcomes for all patients, with two patients achieving complete remission. The drug was also found to be safe and well-tolerated in a prior study.

Palisade also recently secured regulatory approval in Canada to commence an early-stage trial of PALI-2108 in fibrostenotic Crohn’s disease. The study is expected to kick off later this year and will deliver its first data in early 2026.

On Stocktwits, retail sentiment for Palisade Bio was ‘extremely bullish’ amid a 33,300% surge in 24-hour message volume.

One user stated that the stock appeared strong in overnight trading and expected it to reach $2 by Thursday. At the same time, another predicted that Palisade Bio could rally further next week following weekend data updates.

Palisade Bio’s stock has declined 20.6% so far in 2025.

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