Shuttle Pharmaceuticals Announces Pricing of $4.25 Million Private Placement Priced At-the-Market

Rhea-AI Summary

Shuttle Pharmaceuticals (SHPH) has secured a $4.25 million private placement through a securities purchase agreement with an accredited investor. The company will issue 1,180,877 shares of common stock or pre-funded warrants at $3.60 per share, priced at-the-market under Nasdaq rules. The proceeds will support potential acquisitions, marketing, and general corporate purposes. WestPark Capital serves as the exclusive placement agent, with the offering expected to close around June 23, 2025. The securities are offered only to accredited investors and are not registered under the Securities Act of 1933. Shuttle Pharma has agreed to file registration statements for the resale of the shares and warrant-eligible shares.

Positive

• Secured $4.25 million in additional funding through private placement
• Proceeds will support potential acquisitions and marketing initiatives
• Priced at-the-market under Nasdaq rules, indicating fair market value

Negative

• Potential dilution for existing shareholders with issuance of 1,180,877 new shares
• Securities are currently unregistered, limiting immediate tradability
• Placement agent fees and offering expenses will reduce net proceeds

Insights

Biotech Investment Analyst

Shuttle Pharma secures $4.25M financing at $3.60/share to fund potential acquisitions and operations; dilutive but provides operational runway.

Shuttle Pharmaceuticals has secured $4.25 million in fresh capital through a private placement priced at $3.60 per share. This at-the-market pricing indicates the financing wasn't done at a discount, which is relatively positive for existing shareholders compared to the deeply discounted financings often seen with smaller biotech companies.

The company will issue approximately 1.18 million new shares (or pre-funded warrants), which will increase the outstanding share count and create some dilution for existing shareholders. This capital raise appears modest in size, suggesting the company needed operational funding rather than a major cash infusion for late-stage clinical trials.

The stated use of proceeds includes potential acquisitions, marketing, and general corporate purposes. This signals the company may be looking to expand its pipeline or capabilities through M&A rather than solely focusing on its current radiation sensitizer development programs. For early-stage biotech companies like Shuttle, this financing provides essential runway to advance their programs without immediately returning to the capital markets.

WestPark Capital's involvement as the exclusive placement agent suggests a targeted offering to select investors rather than a broader public offering. The closing expected around June 23 provides near-term certainty on the capital position. While this financing strengthens Shuttle's balance sheet, investors should watch for details on any potential acquisition targets, as the success of such moves will be critical in determining the long-term value created from this new capital.

GAITHERSBURG, Md., June 20, 2025 (GLOBE NEWSWIRE) -- Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH) (“Shuttle Pharma” or the “Company”), a discovery and development stage specialty pharmaceutical company focused on improving outcomes for cancer patients treated with radiation therapy (RT), today announced that it entered into a securities purchase agreement with an accredited investor for aggregate gross proceeds of $4.25 million, before deducting fees to the placement agent and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering for potential acquisitions, marketing and other general corporate purposes.

In connection with the offering, the Company will issue 1,180,877 shares of common stock (or pre-funded warrants to purchase shares of common stock) at a purchase price of $3.60 per share, priced at-the-market under Nasdaq rules.

The offering is expected to close on or about June 23, 2025, subject to the satisfaction of customary closing conditions.

WestPark Capital, Inc. is acting as the exclusive placement agent in connection with the offering.

Additional details regarding the offering will be available in a Form 8-K to be filed by the Company with the Securities and Exchange Commission (the "SEC").

The securities described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock and the shares issuable upon exercise of the pre-funded warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Shuttle Pharmaceuticals

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.

Cautionary Note Regarding Forward Looking Statements

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, closing of the offering, and use of proceeds. 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, 2024, filed with the SEC on February 26, 2025, 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 Pharma disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact

Shuttle Pharmaceuticals
Chris Cooper
Chief Executive Officer
info@shuttlepharma.com

Investor Contacts
Lytham Partners, LLC
shph@lythampartners.com

FAQ

What is the size and price of Shuttle Pharmaceuticals (SHPH) private placement offering?

Shuttle Pharmaceuticals announced a $4.25 million private placement with shares priced at $3.60 per share, issuing 1,180,877 shares or pre-funded warrants.

How will Shuttle Pharmaceuticals (SHPH) use the proceeds from the private placement?

The company plans to use the net proceeds for potential acquisitions, marketing initiatives, and other general corporate purposes.

When is the expected closing date for SHPH's private placement?

The private placement is expected to close on or about June 23, 2025, subject to customary closing conditions.

Who is the placement agent for Shuttle Pharmaceuticals' private placement?

WestPark Capital, Inc. is acting as the exclusive placement agent for the offering.

Will the new SHPH shares be immediately tradable?

No, the securities are unregistered but the company has agreed to file registration statements with the SEC for the resale of the shares and warrant-eligible shares.