SARASOTA, FL - Silo Pharma, Inc. (NASDAQ:SILO), a biopharmaceutical company in the developmental stage, has announced a registered direct offering and concurrent private placement of securities intended to raise approximately $2 million.
The company, which is working on novel formulations and drug delivery systems for both traditional and psychedelic therapeutics, stated that it has entered into definitive agreements for the sale of 917,432 shares of common stock, or common stock equivalents, at $2.18 each.
In addition to the direct offering, Silo Pharma will issue warrants in a private placement, which will allow investors to purchase up to an additional 917,432 shares of common stock at an exercise price of $2.06 per share. These warrants will become exercisable immediately upon issuance and will expire five years from the date of issuance. The closing of the transactions is expected to take place on or about Thursday, subject to customary closing conditions.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. The proceeds from the offering, before deducting fees and other expenses, are earmarked for working capital and general corporate purposes.
Silo Pharma's research includes programs targeting PTSD, stress-induced anxiety disorders, fibromyalgia, chronic pain, Alzheimer's disease, and multiple sclerosis, with collaborations with Columbia University and the University of Maryland, Baltimore.
The information in this article is based on a press release statement from Silo Pharma.
In other recent news, Silo Pharma has initiated steps towards clinical trials for its PTSD treatment, SPC-15, after submitting a pre-Investigational New Drug briefing package to the U.S. Food and Drug Administration. The company's research indicates the potential effectiveness of SPC-15 in treating PTSD and stress-induced anxiety disorder.
In collaboration with Columbia University, Silo Pharma has also reported promising results from a study on a new drug formulation for depression treatment, potentially improving mood stability and extending remission periods for depression patients. In addition, the company has secured an exclusive license to develop, manufacture, and commercialize SPC-15 globally, with finalization anticipated in the first half of 2024.
The company is also set to participate in an FDA-sponsored public meeting to discuss the use of ketamine in emerging therapeutic areas and is currently developing several drug candidates that feature ketamine as a primary therapeutic agent, including SP-26, a time-release ketamine-loaded implant for pain relief.
These developments underscore Silo Pharma's commitment to exploring novel formulations and delivery systems for drugs that address conditions with limited treatment options.
InvestingPro Insights
Silo Pharma's recent announcement of their capital raising strategy through a registered direct offering and concurrent private placement coincides with some noteworthy financial metrics and market performance. According to InvestingPro data, Silo Pharma holds a market capitalization of $6.31 million USD and has demonstrated a strong return over the last three months, with a 45.16% increase. This could signal investor confidence in the company's growth prospects and strategic initiatives.
From the perspective of financial health, Silo Pharma is in a favorable position, as indicated by an InvestingPro Tip that highlights the company's cash reserves being greater than its debt. This could provide Silo Pharma with a solid foundation to fund its ongoing research and development activities without the pressing need for immediate profitability, which aligns with another InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
The company's gross profit margin stands at an impressive 91.9% for the last twelve months as of Q1 2024, which suggests that Silo Pharma is efficient in its cost management relative to revenue generation. This efficiency could be crucial for the company as it continues to invest in research programs targeting various medical conditions.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, which provide further insights into Silo Pharma's market performance and financial health. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for access to these valuable tips.
As Silo Pharma navigates the biopharmaceutical industry, these insights can help investors understand the company's position and potential. With the upcoming earnings date on August 28, 2024, stakeholders will be keen to monitor Silo Pharma's progress and financial outcomes.
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