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Shuttle Pharma Pays Off Senior Secured Convertible Note

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Shuttle Pharmaceuticals (Nasdaq: SHPH) has fully paid off its Senior Secured Convertible Note issued in January 2023, which had an initial balance of $4.3 million. The company made $1.3 million in cash payments and issued 1,094,970 shares, bringing total outstanding shares to 2,946,099. In October 2024, the company secured $790,000 in gross proceeds through a convertible note and warrant offering, including $237,500 from CEO Dr. Anatoly Dritschilo.

The company is advancing its Phase 2 clinical trial for glioblastoma treatment, with five out of six trial sites ready to begin treating patients. The trial will initially include 40 patients randomized into two dose groups, with plans to add 14 more patients once the optimal dose is determined. The trial is expected to complete in 18-24 months.

Shuttle Pharmaceuticals (Nasdaq: SHPH) ha completamente estinto il proprio Prestito Convertibile Garantito Senior emesso a gennaio 2023, che aveva un saldo iniziale di 4,3 milioni di dollari. L'azienda ha effettuato pagamenti in contante per 1,3 milioni di dollari e ha emesso 1.094.970 azioni, portando il totale delle azioni in circolazione a 2.946.099. Nel mese di ottobre 2024, l'azienda ha ottenuto 790.000 dollari in proventi lordi tramite un'offerta di prestito convertibile e warrant, inclusi 237.500 dollari dal CEO Dr. Anatoly Dritschilo.

L'azienda sta portando avanti il proprio studio clinico di fase 2 per il trattamento del glioblastoma, con cinque dei sei siti di prova pronti a iniziare a curare i pazienti. Lo studio includerà inizialmente 40 pazienti randomizzati in due gruppi di dosaggio, con piani di aggiungere 14 pazienti in più una volta determinato il dosaggio ottimale. Si prevede che lo studio si concluda in 18-24 mesi.

Shuttle Pharmaceuticals (Nasdaq: SHPH) ha pagado completamente su Nota Convertible Garantizada Senior emitida en enero de 2023, que tenía un saldo inicial de 4,3 millones de dólares. La compañía realizó pagos en efectivo por 1,3 millones de dólares y emitió 1.094.970 acciones, llevando el total de acciones en circulación a 2.946.099. En octubre de 2024, la compañía aseguró 790.000 dólares en ingresos brutos a través de una oferta de nota convertible y warrants, incluyendo 237.500 dólares del CEO Dr. Anatoly Dritschilo.

La compañía está avanzando en su ensayo clínico de fase 2 para el tratamiento del glioblastoma, con cinco de los seis sitios de ensayo listos para comenzar a tratar pacientes. El ensayo incluirá inicialmente 40 pacientes randomizados en dos grupos de dosis, con planes de añadir 14 pacientes más una vez que se determine la dosis óptima. Se espera que el ensayo se complete en 18-24 meses.

Shuttle Pharmaceuticals (Nasdaq: SHPH)는 2023년 1월에 발행된 Senior Secured Convertible Note를 전액 상환했습니다. 초기 잔액은 430만 달러였으며, 회사는 130만 달러의 현금 지급을 했고 1,094,970주를 발행하여 총 발행 주식 수를 2,946,099주로 늘렸습니다. 2024년 10월, 회사는 CEO Dr. Anatoly Dritschilo로부터 237,500달러를 포함하여 79만 달러의 매출을 확보했습니다.

회사는 2상 임상 시험을 진행 중이며, 6개의 시험 사이트 중 5개가 환자 치료를 시작할 준비가 되어 있습니다. 이 시험은 처음에 40명의 환자를 무작위로 두 개의 용량 그룹에 배정할 것이며, 최적의 용량이 결정되면 14명의 환자를 추가할 계획입니다. 이 시험은 18-24개월 이내에 완료될 것으로 예상됩니다.

Shuttle Pharmaceuticals (Nasdaq: SHPH) a entièrement remboursé sa Note Convertible Garantie Senior émise en janvier 2023, qui avait un solde initial de 4,3 millions de dollars. L'entreprise a effectué des paiements en espèces de 1,3 million de dollars et a émis 1.094.970 actions, portant le nombre total d'actions en circulation à 2.946.099. En octobre 2024, la société a sécurisé 790.000 dollars de produits bruts grâce à une offre de note convertible et de bons de souscription, dont 237.500 dollars venant du PDG Dr. Anatoly Dritschilo.

L'entreprise fait avancer son essai clinique de phase 2 pour le traitement du glioblastome, avec cinq des six sites d'essai prêts à commencer à traiter les patients. L'essai comprendra initialement 40 patients randomisés en deux groupes de dosage, avec des plans d'ajouter 14 patients supplémentaires une fois que la dose optimale sera déterminée. L'essai devrait se terminer dans 18 à 24 mois.

Shuttle Pharmaceuticals (Nasdaq: SHPH) hat seine Senior Secured Convertible Note, die im Januar 2023 ausgegeben wurde, vollständig zurückgezahlt, die einen ursprünglichen Saldo von 4,3 Millionen Dollar hatte. Das Unternehmen leistete Barzahlungen in Höhe von 1,3 Millionen Dollar und gab 1.094.970 Aktien aus, wodurch die Gesamtzahl der ausgegebenen Aktien auf 2.946.099 erhöht wurde. Im Oktober 2024 sicherte sich das Unternehmen über ein Angebot von Wandelschuldverschreibungen und Warrants 790.000 Dollar Bruttoerlöse, darunter 237.500 Dollar vom CEO Dr. Anatoly Dritschilo.

Das Unternehmen schreitet mit seiner Phase-2-Studie zur Behandlung von Glioblastomen voran, wobei fünf von sechs Studienstandorten bereit sind, mit der Behandlung von Patienten zu beginnen. Die Studie wird zunächst 40 Patienten umfassen, die in zwei Dosierungsgruppen randomisiert werden, mit dem Plan, 14 weitere Patienten hinzuzufügen, sobald die optimale Dosis bestimmt ist. Die Studie soll in 18-24 Monaten abgeschlossen sein.

Positive
  • Successfully paid off $4.3M convertible note ahead of schedule
  • Secured new funding of $790,000 through convertible note and warrant offering
  • Five clinical trial sites ready to begin patient treatment
  • CEO demonstrated confidence by investing $237,500 personally
Negative
  • Significant share dilution with issuance of 1,094,970 new shares
  • Additional dilution potential from new convertible note offering
  • Extended timeline of 18-24 months for trial completion

Insights

The payoff of the $4.3 million Senior Secured Convertible Note significantly improves Shuttle Pharma's balance sheet and financial flexibility. The company managed this through a combination of $1.3 million in cash payments and equity issuances of 1,094,970 shares. The new $790,000 convertible note offering, including insider participation from the CEO, provides bridge funding for their Phase 2 glioblastoma trial.

The market opportunity is substantial, targeting 400,000 potential patients in the US receiving curative radiation therapy, with projected growth of 22% over five years. However, investors should note the dilutive impact of the equity issuances, bringing total shares outstanding to 2,946,099.

The Phase 2 trial design for Shuttle Pharma's radiation sensitizer shows strategic targeting of IDH wild-type, methylation negative glioblastoma - an aggressive form of brain cancer with poor survival rates. The two-stage trial approach (40 initial patients split between two dosage groups, followed by 14 additional patients at the optimal dose) is well-structured to determine both optimal dosing and statistical significance for survival outcomes.

The focus on patients with treatment options (currently only radiation therapy) and poor prognosis (less than 12-month survival) positions this trial to potentially demonstrate meaningful clinical benefit. The 18-24 month trial timeline is reasonable for this indication.

GAITHERSBURG, Md., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH) (“Shuttle Pharma”), a discovery and development stage specialty pharmaceutical company focused on improving outcomes for cancer patients treated with radiation therapy (RT), today announced that, during the third quarter of this year, it paid off the entirety of the outstanding balance due under its Senior Secured Convertible Note (“Note”) issued on January 11, 2023.

The initial balance of the Note was $4.3 million and was originally repayable over a 26-month period ending March 11, 2025. During the term of the note, Shuttle Pharma made periodic cash payments totaling $1.3 million and equity issuances totaling 1,094,970 shares (on a post reverse split basis). As a result, the Company now has a total of 2,946,099 shares outstanding. Additionally, in October 2024, Shuttle Pharma closed on a convertible note and warrant offering, receiving a total of $790,000 in gross proceeds, including $237,500 invested by the Company’s Chief Executive Officer, Dr. Anatoly Dritschilo.

“The elimination of the convertible note along with obtaining the bridge funding provides us with added flexibility to advance our ongoing Phase 2 clinical trial for the treatment of patients with glioblastoma,” commented Shuttle Pharma's Chairman and CEO, Anatoly Dritschilo, M.D. “Over the past few months, Shuttle Pharma has made progress on a number of key activities. Along with our paydown of the convertible note and raising interim bridge funding, we have entered into agreements with six trial sites, five of which are now fully prepared to begin treating patients in the Phase 2 clinical trial. I look forward to maintaining our focus towards achieving our goal of increasing cancer cure rates, prolonging patient survival, and improving the quality of life for patients suffering from glioblastoma.”

The Phase 2 clinical trial has begun enrolling patients with the most aggressive brain tumors out there – IDH wild-type, methylation negative glioblastoma. Presently, radiation is the only approved standard of care for this particular group of patients, with more than half of the patients surviving for less than 12 months after diagnosis. Shuttle Pharma’s Phase 2 clinical trial will consist initially of 40 patients randomized into two different doses (20 @ 1,200 mg/day and 20 @ 960 mg/day) to determine an optimal dose. Once the Company determines the optimal dose, it will then add an additional 14 patients on the optimal dosage allowing for the achievement of statistical significance with the end point being that of survival as compared to historical controls. The Company expects the trial to be completed over a period of 18 to 24 months.

An estimated 800,000 patients in the US are treated with radiation therapy for their cancers yearly. According to the American Cancer Society and the American Society of Radiation Oncologists, about 50% are treated for curative purposes and the balance for therapeutic care. The market opportunity for radiation sensitizers lies with the 400,000 patients treated for curative purposes, with this number expected to grow by more than 22% over the next five years.

More information about the Phase 2 study (NCT06359379) can be found at www.clinicaltrials.gov.

About Shuttle Pharmaceuticals

Founded in 2012 by faculty members of the Georgetown University Medical Center, Shuttle Pharma is a discovery and development stage specialty pharmaceutical company focused on improving the outcomes for cancer patients treated with radiation therapy (RT). Our mission is to improve the lives of cancer patients by developing therapies that are designed to maximize the effectiveness of RT while limiting the side effects of radiation in cancer treatment. Although RT is a proven modality for treating cancers, by developing radiation sensitizers, we aim to increase cancer cure rates, prolong patient survival and improve quality of life when used as a primary treatment or in combination with surgery, chemotherapy and immunotherapy. For more information, please visit our website at www.shuttlepharma.com.

Safe Harbor Statement

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements concerning the development of our company. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the “Risk Factors” section of Shuttle Pharma’s Annual Report on Form 10-K for the year ended December 31, 2023, as amended, filed with the SEC on September 4, 2024, as well as other SEC filings. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, Shuttle Pharmaceuticals specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Shuttle Pharmaceuticals
Anatoly Dritschilo, M.D., CEO
240-403-4212
info@shuttlepharma.com

Investor Contacts
Lytham Partners, LLC
Robert Blum
602-889-9700
shph@lythampartners.com 


FAQ

How much did Shuttle Pharma (SHPH) pay to settle its Senior Secured Convertible Note?

Shuttle Pharma paid $1.3 million in cash and issued 1,094,970 shares to fully settle the $4.3 million Senior Secured Convertible Note.

How many patients will be enrolled in Shuttle Pharma's (SHPH) Phase 2 glioblastoma trial?

The trial will initially enroll 40 patients in two dose groups, with plans to add 14 more patients after determining the optimal dose, for a total of 54 patients.

How much funding did Shuttle Pharma (SHPH) raise in October 2024?

Shuttle Pharma raised $790,000 in gross proceeds through a convertible note and warrant offering in October 2024.

Shuttle Pharmaceuticals Holdings, Inc.

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