Polyrizon (NASDAQ: PLRZ) signs MOU to acquire 51% stake in Arrow Aviation

Polyrizon Ltd. (NASDAQ: PLRZ) signed a non-binding memorandum of understanding to acquire a 51% stake in Arrow Aviation Ltd., a private aviation company, for approximately $5.8 million in cash.

The biotechnology company, which develops intranasal protective solutions, announced the agreement represents a strategic expansion into the private aviation sector. Arrow Aviation reported annual unaudited revenues of approximately $19 million and adjusted EBITDA of approximately $3 million.

Arrow Aviation operates a fleet of executive jets and provides private aviation services to business, private, and public clients. The company offers services including private flights, medical evacuations, air rescues, and cargo operations.

The proposed transaction includes additional arrangements such as the transfer of a Hawker 800 aircraft valued at $3.5 million to Arrow Aviation by a third party in exchange for a convertible note issued by Polyrizon. Existing Arrow Aviation shareholders will forgive outstanding debts owed by the company in return for convertible notes from Polyrizon.

The MOU includes mutual call and put options on the remaining 49% of Arrow Aviation shares, exercisable after two years based on agreed valuation multiples. These options could result in Polyrizon acquiring 100% of Arrow Aviation.