Polyrizon Ltd. has entered the private‑aviation sector by signing a non‑binding memorandum of understanding to acquire a 51 % stake in Arrow Aviation Ltd., a global provider of VIP jet charter, medical evacuation, and cargo services. The deal will be financed with a cash outlay of NIS 18 million (about $5.8 million) and the transfer of a Hawker 800 aircraft valued at $3.5 million, which will be exchanged for a convertible note. Arrow’s existing debt will be forgiven in return for additional convertible notes, allowing the company to emerge debt‑free.
Polyrizon, a pre‑clinical biotechnology firm focused on intranasal hydrogel technologies, reported a market capitalization of $25.12 million and a current ratio of 44.04. The company has no revenue and a negative EBITDA of $3.13 million for the last twelve months, but it holds a strong cash position that enables it to pursue high‑growth opportunities outside its core research activities.
Arrow Aviation reported unaudited annual revenues of approximately $19 million and an adjusted EBITDA of about $3 million. The transaction will eliminate Arrow’s debt, though the exact amount of debt forgiven was not disclosed. The company’s fleet of executive jets, including the newly transferred Hawker 800, positions it to capture a growing share of the private‑aviation market, projected to reach $41.38 billion by 2030.
The transaction structure includes a two‑year call and put option period for the remaining 49 % stake, with valuation multiples tied to revenue or EBITDA. Polyrizon will hold a convertible note that can be exercised at a predetermined price, while Arrow shareholders will receive convertible notes in exchange for debt forgiveness. The deal is subject to due diligence, but no adverse findings have been reported to date.
Polyrizon’s CEO, Tomer Izraeli, said the acquisition represents a strategic diversification into a high‑growth sector that could generate new revenue streams and enhance shareholder value. The move allows Polyrizon to leverage its cash reserves to acquire a profitable, cash‑generating business, offsetting its own lack of earnings and positioning the company for long‑term growth. Analysts noted that the private‑aviation market’s projected expansion and Arrow’s established operations provide a compelling tailwind for Polyrizon’s diversification strategy.
The market reacted positively to the announcement, with analysts highlighting the strategic fit and the potential for Arrow to contribute significant revenue to Polyrizon’s financials. The deal is seen as a bold step that could reshape Polyrizon’s business model and improve its long‑term prospects.
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