# EDGAR Filing Document

**Accession Number:** 0001357459
**File Stem:** 0001493152-23-003966
**Filing Date:** 2023-2
**Character Count:** 18512
**Document Hash:** c76ca1fbdc265d6b6b4513a2d71e2327
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-003966.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001493152-23-003966

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PALISADE BIO, INC.
- **CENTRAL INDEX KEY:** 0001357459
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **IRS NUMBER:** 522007292
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33672
- **FILM NUMBER:** 23600015

**BUSINESS ADDRESS:**
- **STREET 1:** 7750 EL CAMINO REAL, SUITE 5200
- **CITY:** CARLSBAD
- **STATE:** CA
- **ZIP:** 92009
- **BUSINESS PHONE:** (858) 704-4900

**MAIL ADDRESS:**
- **STREET 1:** 7750 EL CAMINO REAL, SUITE 5200
- **CITY:** CARLSBAD
- **STATE:** CA
- **ZIP:** 92009

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Seneca Biopharma, Inc.
- **DATE OF NAME CHANGE:** 20200127

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Neuralstem, Inc.
- **DATE OF NAME CHANGE:** 20060324

?xml version="1.0" encoding="utf-8"?

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d)** 

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 8, 2023 (February 2, 2023)** 

**PALISADE BIO, INC.**

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| **Delaware** | **001-33672** | **52-2007292** |
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission** <br> **File Number)** | **(IRS Employer** <br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **7750 El Camino Real**<br> **Suite 5200** |  |
| **Carlsbad, California** | **92009** |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (858) 704-4900**

**N/A**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:** 

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)** | **Name of each exchange**<br> **on which registered** |
| **Common Stock, par value $0.01 per share** | **PALI** | **Nasdaq Capital Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 3.02** | **Unregistered Sales of Equity Securities.** |

---

On February 6, 2023, Palisade Bio, Inc. (the "Company") issued (i) 81,500 common stock purchase options ("Options"), (ii) 59,500 restricted stock units ("RSUs"), and (iii) 68,700 performance restricted stock units ("PSUs") to certain officers and members of senior management of the Company (collectively, the "Management Awards"). The Management Awards are all issued as conditional grants and cannot be exercised or exchanged for shares of the Company's common stock, par value $0.01, until the Company's shareholders approve the Management Awards as required by Nasdaq Rule 5635. The Management Awards provide that (i) no award can be exercised or converted prior to obtaining shareholder approval, and (ii) the award can be unwound, and the outstanding grants cancelled, if shareholder approval is not obtained. The Management Awards were issued pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof and/or Regulation D promulgated thereunder.

Subject to necessary shareholder approval:

&nbsp;&nbsp;&nbsp;&nbsp;1. the
 Options (i) have an exercise price of $2.40 per share, the closing price of the Company's common stock on the grant date, (ii)
 have a term of ten (10) years, (iii) vest quarterly in equal installments over a three (3) year period, and (iv) have an aggregate
 value on the grant date of $125,175;

2. the
 RSUs vest quarterly in equal installments over a three (3) year period and are valued at $142,800 on the grant date; and

3. The
 PSUs are valued at $164,880 on the grant date, have a term of ten (10) years, and vest (i) 50% at such time when the volume weighted average price of the Company's
 common stock over a twenty (20) consecutive trading day period is
 at or greater than $3.20, and (ii) 50% at such time when the volume weighted
 average price of the Company's common stock over a twenty (20) consecutive trading day
 period is at or greater than $4.25.

---

| | |
|:---|:---|
| **Item 5.02** | **Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.** |

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*Appointment of Chief Operating Officer*

On February 2, 2023, the Company appointed Robert McRae as the Company's Chief Operating Officer. Mr. McRae previously served as the Company's SVP of Operations and Strategic Development from December 2021 until his appointment as Chief Operating Officer. Except as described herein, there are no arrangements or understandings between Mr. McRae and any other persons pursuant to which he was selected as an officer, and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

There are no family relationships between Mr. McRae and any of the directors or officers of the Company or any of its subsidiaries. As an officer of the Company, Mr. McRae will be eligible to participate in the Company's equity compensation plans, stock purchase plans, and benefit plans, commensurate with his title and position at the Company.

*Robert McRae, age 39, was appointed as our Chief Operating Officer effective February 2, 2023. Previously, Mr. McRae served as Palisade Bio's Senior Vice President of Operations and Strategic Development since December 2021. Prior to joining Palisade Bio, Mr. McRae held multiple positions at Viracta Therapeutics [Nasdaq: VIRX], an oncology focused biotechnology company, including Vice President, Operations and Strategic Alliances (2019-2021), Vice President, Operations (2018-2019), Vice President, Research and Development (2018), and Senior Director, Research and Development Operations and Alliance Management (2017-2018). Prior to Viracta, Mr. McRae held multiple positions at CTI Clinical Trial and Consulting Services, including business development and clinical study management from 2010-2017. Mr. McRae holds a BS in Biological Sciences from Wright State University.*

 

*Employment Terms of Robert McRae*

 

Pursuant to Mr. McRae's appointment as Chief Operating Officer, Mr. McRae will receive a base salary of $400,000 per annum with a target bonus of 40%. The Company anticipates entering into an employment agreement with Mr. McRae.

*Amendment to Employment Terms of J.D. Finley*

 

On February 2, 2023, the Board increased the base salary of Mr. Finley, the Company's Chief Financial Officer and interim Chief Executive Officer, from $440,00 to $490,000 and increased his target bonus to 45% of base salary. The increase in base salary and target bonus was made effective as of October 1, 2022. The Company anticipates entering into an amendment to Mr. Finley's employment agreement to reflect the foregoing.

*Appointment of J.D. Finley to the Board of Directors*

 

On February 2, 2023, the Board appointed J.D. Finley to the Board. Mr. Finley will serve as a Class III member of the Board and will be up for re-election at the Company's 2023 annual meeting of shareholders. Pursuant to Mr. Finley's appointment to the Board, the Board expanded the number of directors from seven (7) to eight (8).

There is no arrangement or understanding between Mr. Finley and any other person pursuant to which Mr. Finley was selected as a member of the Board, and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K. There are no family relationships between Mr. Finley and any of the directors or officers of the Company.

*J.D. Finley, age 65, has served as the Company's Chief Financial Officer since April 2021. Previously, Mr. Finley served as Leading Biosciences, Inc's (the Company's wholly owned subsidiary and predecessor company) Chief Financial Officer since January 2017 and as a member of board of directors of Leading Biosciences, Inc. (the "LBS Board") since December 2014. Prior to joining Leading Biosciences, Inc., Mr. Finley was Chief Executive Officer of PointAcross, Inc., a marketing company, from January 2016 to January 2017. Mr. Finley previously co-founded Proteus Capital Partners, Inc., a firm specializing in providing financing for a variety of businesses, and was CFO at Phillips Capital, a broker/dealer firm specializing in private debt and equity capital raises. From March 2011 to June 2012 Mr. Finley was Executive Vice President, and from June 2012 to April 2014, Mr. Finley was President of Goldmail. Mr. Finley received a B.A. in business administration from Boise State University and an M.S. in Taxation from the University of Denver.*

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| | |
|:---|:---|
| **Item 8.01** | **Other Events** |

---

On February 8, 2023, the Company issued a press release announcing the appointment of Mr. McRae as Chief Operating Officer and the appointment of Mr. Finley to the Board. A copy of the press release is attached as Exhibit 99.01 hereto.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statement and Exhibits.** |

---

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| | |
|:---|:---|
| **Exhibit**<br> **No.** | **Description** |
| 99.01 | [Press Release dated February 8, 2023](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 8, 2023 | Palisade Bio, Inc. | Palisade Bio, Inc. |
|  |  |  | */s/ J.D. Finley* |
|  |  | By: | J.D. Finley |
|  |  |  | Interim Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**Palisade Bio Promotes Robert McRae to Chief Operating Officer** 

 

*Mr. McRae is an industry veteran with a proven track record of operational, clinical, and strategic business development execution* 

**Carlsbad, CA – February 8, 2023** – <u>Palisade Bio, Inc.</u> (Nasdaq: PALI) (the "Company"), a clinical stage biopharmaceutical company advancing therapies for acute and chronic gastrointestinal (GI) complications, today announced the promotion of Robert McRae to Chief Operating Officer. Additionally, the Company has announced the appointment of J.D. Finley, interim Chief Executive Officer of Palisade Bio, to its Board of Directors.

"Over the past year, Rob's leadership and expertise have been incredibly valuable across multiple fronts including operations and business development. With his track record of execution and close proximity to the ongoing development efforts with LB1148, we believe he is ideally qualified to serve as our Chief Operating Officer. We are grateful for his continued guidance and insight. We remain dedicated to the development of therapies for acute and chronic GI complications and we believe we are positioning the Company for solid execution and potential optionality," commented Mr. Finley.

Mr. McRae joined Palisade Bio as Senior Vice President, Operations and Strategic Development in December 2021. In his new role as Chief Operating Officer, Mr. McRae will be responsible for the oversight of the overall corporate operations as well as executing the strategic R&D and business development related initiatives for the advancement of Palisade.

Mr. McRae added, "Since joining Palisade Bio in late 2021, I have been involved in many key aspects of the Company's internal operations and advancements of its development programs. I am pleased to step into this new role to help further the Company's pipeline and, importantly, develop much needed therapeutics that target and improve the integrity of the intestinal barrier."

Mr. McRae's experience includes roles in clinical operations and management of global clinical trials in indications across all phases of development. Prior to joining Palisade Bio, Mr. McRae held several positions at Viracta Therapeutics including VP, Operations & Strategic Alliances. During his tenure Viracta, he was instrumental in developing strategic academic and pharmaceutical partnerships as well as guiding R&D operations including clinical, regulatory and translational activities to effectively execute global trials. Mr. McRae also supported Viracta's transition from private to public. Prior to joining Viracta, Mr. McRae held positions in both business development and study management for a global clinical research organization. Mr. McRae conducted molecular biology and microbiology research at Wright State University and the United States Air Force Research Laboratory.

**About Palisade Bio** 

Palisade Bio is a biopharmaceutical company focused on developing therapeutics that protect the integrity of the intestinal barrier. The Company utilizes over three decades of research and established science that links the role of intestinal barrier biology and human disease to develop novel therapeutics that target and improve the integrity of the intestinal barrier.

The Company's lead program, LB1148, is a broad-spectrum serine protease inhibitor that acts to neutralize digestive enzymes, potentially reducing intestinal damage. In clinical studies, LB1148 has demonstrated positive results in reducing the incidence and severity of post-surgical abdominal adhesions and potentially accelerating the time to return of postoperative bowel function. LB1148's current Phase 2 study is evaluating its effectiveness in reducing intra-abdominal adhesions, accelerating return of gastrointestinal function, and the prevention of post-operative ileus in subjects undergoing elective bowel resection (PROFILE).

The Company believes that addressing the disruption of the intestinal barrier can fundamentally change the way diseases are treated and establish new standards of patient care. For more information, please go to <u>www.palisadebio.com</u>.

**Forward Looking Statements**

This communication contains "forward-looking" statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the Company's intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: progress of studies, including opening additional clinical trial sites, timing of results or data, progress and completion of patient enrollment, including timing thereof and the Company's co-development partner's expectation to complete enrollment; regulatory progress and strategy, including potential registration and commercialization of LB1148; the extent of the cash runway; the closing of the underwritten public offering; and expected proceeds from financings. Any statements contained in this communication that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements are based upon the Company's current expectations. Forward-looking statements involve risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the Company's ability to advance its clinical programs, the uncertain and time-consuming regulatory approval process; the Company's ability to achieve additional financing to fund future operations and the Company's ability to comply with the continued listing requirements for Nasdaq. Additional risks and uncertainties can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission ("SEC") on March 17, 2022, Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the SEC on November 14, 2022, as well as discussions of potential risks, uncertainties, and other important factors in our subsequent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

**Investor Relations Contact**

JTC Team, LLC

Jenene Thomas

833-475-8247

<u>PALI@jtcir.com</u>

Source: Palisade Bio