Silo Pharma Announces Closing of $2.5 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Silo Pharma (NASDAQ:SILO), a developmental stage biopharmaceutical company, has completed its previously announced registered direct offering, raising $2.5 million in gross proceeds. The offering consisted of 2,857,143 shares of common stock priced at $0.875 per share.

In a concurrent private placement, the company issued unregistered warrants to purchase up to 2,857,143 shares at an exercise price of $0.75 per share. The warrants are immediately exercisable and will expire five years after the registration statement becomes effective. H.C. Wainwright & Co. served as the exclusive placement agent, and the proceeds will be used for working capital and general corporate purposes.

Positive

• Secured $2.5 million in additional funding through stock offering
• Warrants issued at $0.75 per share, below the offering price of $0.875
• Immediate access to working capital for corporate operations

Negative

• Significant dilution for existing shareholders with 2.86M new shares
• Additional potential dilution from 2.86M warrant shares
• Offering price represents a discount to market value

Insights

Financial Analyst

Silo Pharma closed a $2.5M offering at a significant discount, potentially diluting shareholders while extending runway for its developmental pipeline.

Silo Pharma has secured $2.5 million in financing through a registered direct offering of 2,857,143 shares at $0.875 per share. This pricing represents an at-the-market transaction under Nasdaq rules, though investors also received unregistered warrants to purchase an equivalent number of shares at an even lower exercise price of $0.75.

The structure of this deal merits close attention. The warrant component, exercisable immediately and valid for five years, creates potential additional dilution beyond the initial share issuance. If all warrants are eventually exercised, they would contribute approximately $2.14 million in additional capital, but would further dilute existing shareholders.

For a developmental stage biopharmaceutical company focusing on novel drug delivery systems including psychedelic treatments, capital needs are typically substantial and ongoing. This funding extends Silo's operational runway but at the cost of equity dilution. The company's statement that proceeds will be used for "working capital and general corporate purposes" suggests these funds may primarily support ongoing operations rather than accelerate specific pipeline advancements.

H.C. Wainwright's involvement as placement agent lends some institutional credibility to the transaction, though their fees will reduce the net proceeds available to Silo. The offering's structure, combining registered shares with unregistered warrants through a private placement, is a common approach for smaller public biotechs to attract investors while navigating regulatory requirements.

SARASOTA, FL, Oct. 01, 2025 (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 2,857,143 shares of common stock at a purchase price of $0.875 per share. In a concurrent private placement, the Company issued unregistered warrants to purchase up to 2,857,143 shares of common stock at an exercise price of $0.75 per share that are immediately exercisable upon issuance and will expire five years from the effective date of a registration statement registering for resale the shares of common stock underlying the warrants.

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

The gross proceeds to the Company from the offering were approximately $2.5 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 is a diversified developmental-stage biopharmaceutical and cryptocurrency treasury company. Its therapeutic focus is on addressing underserved conditions, including stress-induced psychiatric disorders, chronic pain, and central nervous system (CNS) diseases. The Company’s portfolio includes innovative programs such as SPC-15 for PTSD, SP-26 for fibromyalgia and chronic pain, and preclinical assets targeting Alzheimer’s disease and multiple sclerosis. Silo’s research is conducted in collaboration with leading universities and laboratories. silopharma.com

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 using 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 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 press release, whether as a result of new information, future events, or otherwise, after the date of this press release 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 October 2025 offering?

Silo Pharma raised $2.5 million in gross proceeds through a registered direct offering of common stock priced at $0.875 per share.

What is the exercise price of SILO's warrants issued in October 2025?

The warrants were issued with an exercise price of $0.75 per share, exercisable immediately and expiring five years from the registration statement's effective date.

How many shares did Silo Pharma (SILO) issue in the October 2025 offering?

Silo Pharma issued 2,857,143 shares of common stock and warrants to purchase an additional 2,857,143 shares.

Who was the placement agent for Silo Pharma's October 2025 offering?

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

How will Silo Pharma use the proceeds from its October 2025 offering?

The company intends to use the net proceeds for working capital and general corporate purposes.