Silo Pharma Announces Closing of $2 Million Public Offering

Rhea-AI Summary

Silo Pharma (NASDAQ: SILO) has successfully closed a $2 million public offering of 3,333,338 shares of common stock at $0.60 per share, along with Series A-1 and A-2 warrants. The offering includes Series A-1 warrants with a 5-year term and Series A-2 warrants with an 18-month term, both with an exercise price of $0.60 per share. H.C. Wainwright & Co. served as the exclusive placement agent. The developmental stage biopharmaceutical company plans to use the net proceeds for general working capital purposes.

Positive

• Successfully raised $2 million in gross proceeds through public offering
• Long-term financing flexibility through 5-year Series A-1 warrants

Negative

• Significant shareholder dilution through issuance of 3.33M new shares
• Additional potential dilution through warrants for up to 6.67M shares
• Low offering price of $0.60 per share indicates weak market position

Insights

Financial Analyst

Silo Pharma raised $2M through a dilutive offering at a significant discount, indicating potential financial challenges despite securing operating capital.

Silo Pharma has closed a $2 million public offering that reveals concerning signals about the company's financial position. The offering price of $0.60 per share likely represents a substantial discount to recent trading prices, which is typically unfavorable for existing shareholders. The structure of the deal—combining shares with two series of warrants at the same $0.60 exercise price—suggests the company struggled to attract investor interest without significant sweeteners.

The inclusion of both 5-year and 18-month warrants effectively creates potential for further dilution of up to 6.67 million additional shares if all warrants are exercised, though this would bring in additional capital of approximately $4 million. This type of financing often indicates a company facing limited options for raising funds.

For a developmental-stage biopharmaceutical company, $2 million (before deducting placement agent fees and expenses) represents a relatively modest sum that may only provide a limited runway extension. The stated use for "general working capital purposes" rather than specific R&D initiatives might suggest the funds are primarily needed for ongoing operations rather than advancing the company's pipeline.

The exclusive placement by H.C. Wainwright rather than a broader underwriting syndicate also typically indicates a more challenging capital raise. While this financing provides Silo with necessary operating capital, the terms reflect the difficult position developmental biotech companies face in the current funding environment, particularly those without strong clinical data catalysts on the immediate horizon.

SARASOTA, FL, May 16, 2025 (GLOBE NEWSWIRE) -- Silo Pharma, Inc. (Nasdaq: SILO) (“Silo” or the “Company”), a developmental stage biopharmaceutical company focused on novel therapeutics and drug delivery systems, closed on the previously announced public offering of 3,333,338 shares of common stock (or pre-funded warrants in lieu thereof), together with series A-1 warrants (“Series A-1 Warrants”) to purchase up to 3,333,338 shares of common stock and series A-2 warrants (“Series A-2 Warrants”) to purchase up to 3,333,338 shares of common stock at a combined public offering price of $0.60 per share (or pre-funded warrant in lieu thereof) and associated Series A-1 Warrant and Series A-2 Warrant. The Series A-1 Warrants have an exercise price of $0.60 per share, are exercisable upon issuance and expire five years thereafter. The Series A-2 Warrants have an exercise price of $0.60 per share, are exercisable upon issuance and expire eighteen months thereafter.

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 million, before deducting the placement agent’s fees and other offering expenses payable by the Company.  The Company intends to use the net proceeds from this offering for general working capital purposes.

A registration statement on Form S-1 (File No. 333-286777) relating to the securities described above has been filed with the Securities and Exchange Commission, or the SEC, and was declared effective by the SEC on May 15, 2025. The offering will be made only by means of a prospectus, which is part of the effective registration statement. A final prospectus relating to the offering has been filed with the SEC on May 16, 2025. Electronic copies of the final prospectus may be obtained for free on the SEC’s website located at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release does 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 other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Silo Pharma

Silo Pharma Inc. (Nasdaq: SILO) is a developmental stage biopharmaceutical company focused 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 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 factor. 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 their May 2025 public offering?

Silo Pharma raised $2 million in gross proceeds through a public offering of common stock and warrants at $0.60 per share.

What is the exercise price and expiration of SILO's Series A-1 and A-2 warrants?

Both Series A-1 and A-2 warrants have an exercise price of $0.60 per share. Series A-1 warrants expire in 5 years, while Series A-2 warrants expire in 18 months.

How many shares did Silo Pharma offer in their May 2025 public offering?

Silo Pharma offered 3,333,338 shares of common stock, along with warrants to purchase up to an additional 6,666,676 shares.

What will SILO use the proceeds from the May 2025 offering for?

Silo Pharma intends to use the net proceeds from the offering for general working capital purposes.

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

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