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Silo Pharma Announces Closing of $2.1 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

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Silo Pharma (Nasdaq: SILO) has closed a $2.1 million registered direct offering priced at-the-market under Nasdaq rules. The offering included the sale of 763,638 shares of common stock at $2.75 per share. Additionally, in a concurrent private placement, the company issued unregistered warrants to purchase up to 763,638 shares at an exercise price of $2.75 per share, exercisable immediately and expiring in five years.

H.C. Wainwright & Co. acted as the exclusive placement agent. Silo Pharma intends to use the net proceeds for working capital and general corporate purposes. The common stock was offered under a shelf registration statement, while the warrants were offered in a private placement under Section 4(a)(2) of the Securities Act.

Silo Pharma (Nasdaq: SILO) ha chiuso un offerta diretta registrata da 2,1 milioni di dollari a prezzi di mercato secondo le normative Nasdaq. L'offerta ha incluso la vendita di 763.638 azioni ordinarie a 2,75 dollari per azione. Inoltre, in un collocamento privato concomitante, la società ha emesso warrant non registrati per acquistare fino a 763.638 azioni a un prezzo di esercizio di 2,75 dollari per azione, esercitabili immediatamente e con scadenza di cinque anni.

H.C. Wainwright & Co. ha agito come agente di collocamento esclusivo. Silo Pharma intende utilizzare i proventi netti per capitale circolante e scopi aziendali generali. Le azioni ordinarie sono state offerte sotto una dichiarazione di registrazione shelf, mentre i warrant sono stati offerti in un collocamento privato ai sensi della Sezione 4(a)(2) della Securities Act.

Silo Pharma (Nasdaq: SILO) ha cerrado una oferta directa registrada de 2.1 millones de dólares a precio de mercado bajo las reglas de Nasdaq. La oferta incluyó la venta de 763,638 acciones comunes a 2.75 dólares por acción. Además, en una colocación privada concurrente, la empresa emitió opciones no registradas para comprar hasta 763,638 acciones a un precio de ejercicio de 2.75 dólares por acción, que son ejercitables de inmediato y expirarán en cinco años.

H.C. Wainwright & Co. actuó como agente exclusivo de colocación. Silo Pharma tiene la intención de utilizar los ingresos netos para capital de trabajo y propósitos corporativos generales. Las acciones comunes se ofrecieron bajo una declaración de registro shelf, mientras que los warrants se ofrecieron en una colocación privada bajo la Sección 4(a)(2) de la Ley de Valores.

Silo Pharma (Nasdaq: SILO)는 Nasdaq 규정에 따라 시장 가격으로 210만 달러의 등록 직접 공모를 종료했습니다. 이 공모에는 763,638주를 주당 2.75달러에 판매하는 것이 포함되었습니다. 또한, 동시 private placement에서 회사는 주당 2.75달러의 행사가로 763,638주를 구매할 수 있는 비등록 워런트를 발행하였으며, 이는 즉시 행사 가능하며 5년 후 만료됩니다.

H.C. Wainwright & Co.는 독점적인 배치 에이전트로 활동했습니다. Silo Pharma는 순이익을 운영 자본 및 일반 회사 용도에 사용할 계획입니다. 보통주는 shelf 등록 성명서에 따라 제공되었고, 워런트는 증권법 섹션 4(a)(2)에 따라 비공식적으로 제공되었습니다.

Silo Pharma (Nasdaq: SILO) a clôturé une offre directe enregistrée de 2,1 millions de dollars à prix du marché selon les règles de Nasdaq. L'offre comprenait la vente de 763 638 actions ordinaires à 2,75 dollars par action. De plus, lors d'un placement privé simultané, la société a émis des bons non enregistrés permettant d'acheter jusqu'à 763 638 actions à un prix d'exercice de 2,75 dollars par action, exerçables immédiatement et expirant dans cinq ans.

H.C. Wainwright & Co. a agi en tant qu'agent de placement exclusif. Silo Pharma a l'intention d'utiliser les produits nets pour le capital de travail et des fins d'entreprise générales. Les actions ordinaires ont été offertes en vertu d'un avis d'enregistrement shelf, tandis que les bons ont été offerts dans le cadre d'un placement privé en vertu de la section 4(a)(2) de la Securities Act.

Silo Pharma (Nasdaq: SILO) hat ein registriertes Direktangebot über 2,1 Millionen Dollar zu Marktpreisen gemäß den Nasdaq-Regeln abgeschlossen. Das Angebot umfasste den Verkauf von 763.638 Stammaktien zu je 2,75 Dollar pro Aktie. Darüber hinaus hat das Unternehmen im Rahmen einer gleichzeitigen Privatplatzierung nicht registrierte Warrants ausgegeben, um bis zu 763.638 Aktien zu einem Ausübungspreis von 2,75 Dollar pro Aktie zu kaufen, die sofort ausübbar sind und in fünf Jahren ablaufen.

H.C. Wainwright & Co. fungierte als exklusiver Platzierungsagent. Silo Pharma beabsichtigt, die Nettomittel für Betriebs- und allgemeine Unternehmenszwecke zu verwenden. Die Stammaktien wurden unter einer Shelf-Registrierungsmitteilung angeboten, während die Warrants im Rahmen einer Privatplatzierung gemäß Section 4(a)(2) des Securities Act angeboten wurden.

Positive
  • Raised $2.1 million in gross proceeds through a registered direct offering
  • Issued warrants that could potentially bring in additional capital if exercised
  • Strengthened working capital position for general corporate purposes
Negative
  • Potential dilution of existing shareholders due to the issuance of new shares
  • Warrants could lead to further dilution if exercised in the future

Insights

Silo Pharma's successful completion of a registered direct offering, raising $2.1 million, is a noteworthy development for the company. This influx of capital is important for a developmental stage biopharmaceutical company, as it provides the financial resources necessary for advancing their research and clinical trials. Historically, such capital raises can be a double-edged sword for investors. While they bolster the company's balance sheet, they can also lead to dilution of existing shares. However, given the pricing of this offering at-the-market under Nasdaq rules, it indicates investor confidence and demand at the current price levels. Investors should closely monitor how efficiently Silo utilizes these funds, particularly in its ongoing projects related to innovative drug formulations and delivery systems.

The issuance of unregistered warrants alongside the registered shares is a strategic move by Silo Pharma. These warrants, exercisable at $2.75 per share and expiring in five years, offer investors potential upside while providing the company with a future cash infusion if exercised. This approach also hints at Silo's confidence in its long-term prospects. For retail investors, it's essential to recognize the potential for price volatility as these warrants are exercised. Additionally, the private placement under SEC regulation exemptions suggests a targeted approach to sophisticated investors, which can be a positive indicator of the company's market positioning and investor relations strategies.

The legal structure of this offering, combining registered and unregistered securities, reflects a careful navigation of SEC regulations. Filing under Form S-3 allows Silo Pharma to expedite the process and access capital more swiftly, which is vital for a developmental stage company. The private placement of unregistered warrants under Section 4(a)(2) and Regulation D shows a strategic maneuver to involve accredited investors, thereby bypassing the lengthy registration process. This dual approach might also mitigate legal risks while ensuring compliance with securities laws. Retail investors should be aware of the different regulatory requirements and potential restrictions associated with unregistered warrants.

SARASOTA, FL, July 22, 2024 (GLOBE NEWSWIRE) -- Silo Pharma, Inc. (Nasdaq: SILO) (“Silo” or the “Company”), a developmental stage biopharmaceutical company focused on developing novel formulations and drug delivery systems for traditional therapeutics and psychedelic treatments, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules for the purchase and sale of 763,638 shares of common stock at a purchase price of $2.75 per share. In a concurrent private placement, the Company issued unregistered warrants to purchase up to 763,638 shares of common stock at an exercise price of $2.75 per share that are immediately exercisable upon issuance and will expire five years following the date of issuance.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering were approximately $2.1 million before deducting placement agent fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The common stock (but not the unregistered warrants and the shares of common stock underlying the unregistered warrants) described above were offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-276658) that was declared effective by the Securities and Exchange Commission (the “SEC”) on January 30, 2024. The offering of the shares of common stock was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering was filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC’s website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, New York 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

The unregistered warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Regulation D promulgated thereunder and, along with the shares of common stock underlying such unregistered warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the unregistered warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

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

About Silo Pharma

Silo Pharma Inc. (Nasdaq: SILO) is a developmental stage biopharmaceutical company developing novel therapeutics that address underserved conditions including stress-induced psychiatric disorders, chronic pain conditions, and central nervous system (CNS) diseases. Silo focuses on developing traditional therapies and psychedelic treatments in novel formulations and drug delivery systems. The Company’s lead program, SPC-15, is an intranasal treatment targeting PTSD and stress-induced anxiety disorders. SP-26 is a time-release ketamine-loaded implant for fibromyalgia and chronic pain relief. Silo’s two preclinical programs are SPC-14, an intranasal compound for the treatment of Alzheimer’s disease, and SPU-16, a CNS-homing peptide targeting multiple sclerosis (MS). Silo’s research and development programs are conducted through collaborations with Columbia University and the University of Maryland, Baltimore. For more information, visit www.silopharma.com and connect on social media at LinkedIn, X, and Facebook.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of words “could”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “may”, “continue”, “predict”, “potential”, and similar expressions that are intended to identify forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Silo Pharma, Inc. (“Silo” or “the Company”) to differ materially from the results expressed or implied by such statements, including statements pertaining to the intended use of proceeds from the offering, changes to anticipated sources of revenues, future economic and competitive conditions, difficulties in developing the Company’s technology platforms, retaining and expanding the Company’s customer base, fluctuations in consumer spending on the Company’s products and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company disclaims any obligations to publicly update or release any revisions to the forward-looking information contained in this presentation, whether as a result of new information, future events, or otherwise, after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law.

Contact

800-705-0120
investors@silopharma.com


FAQ

How much did Silo Pharma (SILO) raise in its recent offering?

Silo Pharma (SILO) raised approximately $2.1 million in gross proceeds through its registered direct offering.

What was the price per share in Silo Pharma's (SILO) July 2024 offering?

The purchase price in Silo Pharma's (SILO) July 2024 offering was $2.75 per share of common stock.

How many shares did Silo Pharma (SILO) sell in its recent offering?

Silo Pharma (SILO) sold 763,638 shares of common stock in its recent registered direct offering.

What are the terms of the warrants issued by Silo Pharma (SILO) in July 2024?

Silo Pharma (SILO) issued unregistered warrants to purchase up to 763,638 shares at an exercise price of $2.75 per share, exercisable immediately and expiring in five years.

How does Silo Pharma (SILO) plan to use the proceeds from its July 2024 offering?

Silo Pharma (SILO) intends to use the net proceeds from the offering for working capital and general corporate purposes.

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