Arrow Aviation, an Israeli private aviation company, has signed an MOU with Polyrizon, a pre-clinical-stage biotechnology company developing intranasal protective solutions. Under the terms of the non-binding agreement, Polyrizon intends to acquire a 51 per cent stake in Arrow on a fully diluted basis through a cash investment of NIS 18,000,000 (approximately $5.8 million), marking a strategic expansion into the high-growth private aviation sector.

Arrow Aviation, with annual unaudited revenues of approximately $19 million and adjusted EBITDA of approximately $3 million, is a leading provider of private aviation services, operating a fleet of executive jets and delivering uncompromising, high-standard VIP flights tailored to diverse needs. Arrow Aviation offers private flights for leisure or business, including destination stays, escorts and seamless connections to subsequent destinations. Its services extend to the public sector, supporting government offices and public entities with specialised flights, such as ambulance and medical evacuations, air rescues, special-needs transport, medical tourism and cargo operations, including the handling of sensitive and hazardous materials under special licences. Arrow Aviation serves business, private and public clients with personalised, point-to-point solutions, underpinned by a passion for aviation, extensive industry expertise and a full operational infrastructure, featuring a complete aircraft fleet and dozens of highly skilled pilots holding professional licences for private, commercial, hazardous materials and other specialised flights.

“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, a market set to grow to $41.38 billion by 2030, through a potential acquisition of a high-growth, high-potential company,” says Tomer Izraeli, CEO of Polyrizon. “We believe that the potential acquisition of Arrow Aviation's established operations and commitment to excellence align perfectly with our plan to explore revenue-generating investment opportunities in high-growth sectors that potentially will enhance value for our shareholders and clients alike.”

The proposed transaction includes ancillary 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 (convertible in Polyrizon ordinary shares) issued by Polyrizon. Additionally, existing Arrow Aviation shareholders will forgive outstanding shareholder debts owed by Arrow Aviation in return for convertible notes (convertible in Polyrizon ordinary shares) from Polyrizon, enabling Arrow Aviation to emerge debt-free from institutional obligations post-closing. The MOU also outlines 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 financial metrics like EBITDA or revenue, which may result in Polyrizon acquiring 100 per cent of Arrow Aviation on a fully diluted basis.