Polyrizon Ltd. (PLRZ), a pre-clinical biotechnology company developing intranasal protective hydrogel technologies, has signed a non-binding Memorandum of Understanding to acquire a 51% stake in Arrow Aviation Ltd., a global private aviation operator.
Under the terms of the MOU, Polyrizon intends to purchase the majority stake on a fully diluted basis through a cash investment of NIS 18 million (approximately $5.8 million). The move marks a strategic diversification into the high-growth private aviation sector.
Arrow Aviation generates approximately $19 million in annual unaudited revenue and $3 million in adjusted EBITDA. The company operates a fleet of executive jets and provides VIP private flights for business and leisure, as well as specialized services for government and public entities, including medical evacuations, air rescue, special-needs transport, medical tourism, and hazardous-materials cargo operations.
As part of the proposed transaction, a third party will transfer a Hawker 800 aircraft valued at $3.5 million to Arrow Aviation in exchange for a convertible note issued by Polyrizon. In addition, Arrow Aviation's existing shareholders will forgive outstanding shareholder loans in return for Polyrizon convertible notes, enabling Arrow Aviation to become debt-free following closing.
The MOU also includes mutual call and put options on the remaining 49% of Arrow Aviation's shares, exercisable after two years based on agreed valuation multiples tied to revenue or EBITDA. This structure could ultimately allow Polyrizon to acquire full ownership of the aviation company.
Polyrizon said the potential acquisition aligns with its strategy to explore revenue-generating opportunities in high-growth sectors while leveraging its strong financial position. The company cited industry forecasts projecting the private aviation market to reach $41.38 billion by 2030.
A definitive agreement is expected within 30 days, subject to due diligence and customary closing conditions.
Polyrizon continues to advance its core intranasal hydrogel platforms, including its core intranasal hydrogel platforms, including its Capture & Contain (C&C) and Trap & Target (T&T) technologies, which are being developed for viral and allergen protection as well as intranasal drug delivery.
The company announced a reverse stock split 1-for-6 on November 28, 2025.
PLRZ closed yesterday's trading at $15.76, up 4.23% and rose further in the pre-market to $15.90, up 0.89%.
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