Polyrizon Ltd. (NASDAQ:PLRZ) shares moved about 2% higher after the pre-clinical biotechnology company disclosed plans to acquire a controlling interest in Arrow Aviation Ltd., a privately held global aviation services provider.
Under a non-binding memorandum of understanding, Polyrizon intends to purchase a 51% stake in Arrow Aviation for roughly $5.8 million (NIS 18,000,000) in cash. The proposed deal would mark a notable strategic step for Polyrizon, extending its activities beyond biotechnology into the private aviation industry.
According to Polyrizon, Arrow Aviation generates approximately $19 million in unaudited annual revenue and around $3 million in adjusted EBITDA. The company operates a fleet of executive aircraft offering VIP charter services for business and leisure customers, alongside specialized operations such as medical evacuation flights, air rescue missions and cargo transport.
“We believe that this strategic move, upon completion, represents an exciting diversification opportunity for Polyrizon, allowing us to leverage our strong financial position to enter the dynamic private aviation market,” said Tomer Izraeli, CEO of Polyrizon.
The outlined transaction also includes additional elements, such as the transfer of a Hawker 800 aircraft valued at $3.5 million to Arrow Aviation and the cancellation of certain shareholder debts in exchange for convertible notes. The MOU further предусматри mutual call and put options on the remaining 49% stake in Arrow Aviation, which could be exercised after two years.
Polyrizon said it expects to finalize a binding agreement within 30 days, subject to completion of due diligence and standard closing conditions.