ROCKVILLE, Md. - Shuttle Pharmaceuticals Holdings, Inc. (NASDAQ:SHPH), a specialty pharmaceutical company, announced today its plan to initiate a Rights Offering to raise up to $4.5 million. The offering will allow current SHPH stockholders to purchase units consisting of common stock, warrants, and a stake in its subsidiary, Shuttle Diagnostics, Inc.
The company revealed that the units would be priced at 90% of the volume-weighted average price (VWAP) of SHPH common stock for the five trading days before the closing. Each unit will include one share of common stock, a warrant to purchase an additional share at $2.35, and a percentage of equity interest in Shuttle Diagnostics.
In a strategic move to secure funding, SHPH has reached an agreement with SRO LLC, which has committed to purchasing $2.25 million of the units. SRO LLC also offered a backstop commitment to acquire any unsold units up to an additional $2.25 million if the Rights Offering does not reach its target.
Shuttle Pharmaceuticals, established by faculty members from Georgetown University Medical Center, focuses on developing treatments to enhance the efficacy of radiation therapy for cancer patients. The company aims to improve cancer cure rates and patient quality of life by developing radiation sensitizers.
The information in this article is based on a press release statement from Shuttle Pharmaceuticals Holdings, Inc.
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