SARASOTA, FL - Silo Pharma, Inc. (NASDAQ:SILO), a biopharmaceutical company specializing in novel therapies, has announced a registered direct offering and concurrent private placement expected to close on or about July 22, 2024. The transactions involve the sale of 763,638 common shares at $2.75 each, with gross proceeds anticipated to be around $2.1 million before fees and expenses.
The offering, priced at-the-market under Nasdaq rules, also includes unregistered warrants to purchase an equivalent number of common shares at the same price, exercisable immediately and expiring five years post-issuance. H.C. Wainwright & Co. serves as the exclusive placement agent for the offering.
Silo Pharma intends to allocate the net proceeds towards working capital and general corporate purposes. The common stock is being offered pursuant to a shelf registration statement declared effective by the SEC on January 30, 2024. Prospective investors can obtain the final prospectus supplement and accompanying prospectus from the SEC's website or directly from the placement agent.
The unregistered warrants and the shares of common stock underlying them are offered in a private placement under specific exemptions from registration requirements and, as such, may not be sold in the United States absent an effective registration or an applicable exemption.
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where it would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Silo Pharma is focused on developing treatments for psychiatric disorders, chronic pain, and CNS diseases. Its lead program, SPC-15, targets PTSD and stress-induced anxiety disorders, while SP-26 is a time-release ketamine-loaded implant for fibromyalgia and chronic pain. The company also has preclinical programs for Alzheimer’s disease and multiple sclerosis, conducted in collaboration with Columbia University and the University of Maryland, Baltimore.
The information reported is based on a press release statement.
In other recent news, Silo Pharma Inc. has made considerable advancements in its Alzheimer's and PTSD drug development. The biopharmaceutical company secured an exclusive global license to develop its Alzheimer's medication, SPC-14, which targets specific receptors to treat cognitive and neuropsychiatric symptoms.
Simultaneously, Silo Pharma obtained exclusive rights to develop and market the drug candidate SPC-15 for stress-related disorders and PTSD through a licensing deal with Columbia University.
The company has also initiated a pivotal Good Laboratory Practice study for its SPC-15 intranasal therapeutic for PTSD, marking a significant step towards human clinical trials. In addition, Silo Pharma has reported promising results from a study on a new drug formulation for depression treatment, potentially improving mood stability and extending remission periods for patients.
In financial developments, Silo Pharma announced a registered direct offering and concurrent private placement of securities, aiming to raise approximately $2 million for working capital and general corporate purposes. The company also amended its Master License Agreement with the University of Maryland, demonstrating ongoing commitment to the terms of the agreement.
Lastly, Silo Pharma has made strides in the development of its SP-26 ketamine implant for chronic pain, with preclinical research showing promising results. These are the recent developments in the company's ongoing commitment to creating novel formulations and drug delivery systems for traditional therapeutics and psychedelic treatments.
InvestingPro Insights
Silo Pharma, Inc. (NASDAQ:SILO) has been navigating the biopharmaceutical landscape with a clear strategy, as evidenced by the recent financial maneuvers including their direct offering and private placement. With a market capitalization of $12.79 million, the company has shown a significant return over the last week, with a 243.56% increase. This may reflect investor confidence or speculative interest following the announcement of their capital raise.
InvestingPro Tips highlight that Silo Pharma holds more cash than debt on its balance sheet, which is a positive indicator of the company’s liquidity and financial health. This could be particularly reassuring to potential investors considering the company's plans to allocate the net proceeds towards working capital and general corporate purposes.
Moreover, the company's gross profit margin stands at an impressive 91.9% for the last twelve months as of Q1 2024, suggesting that Silo Pharma has been effective in managing its production costs and maintaining profitability at the gross level.
Still, it is worth noting that the company's P/E ratio is currently negative at -0.99, indicating that it may not be profitable at this time. Analysts do not anticipate the company will be profitable this year, which is consistent with the high operating income margin of -5452.86% for the same period. This could be a point of consideration for those looking at the long-term viability of their investment.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/SILO. Readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable insights that could further inform investment decisions. Currently, there are 17 additional InvestingPro Tips that could provide further context on Silo Pharma's performance and outlook.
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