Silo Pharma Announces Pricing of $2 Million Public Offering

Rhea-AI Summary

Silo Pharma (NASDAQ: SILO) has announced the pricing of a $2 million public offering consisting of 3,333,338 shares of common stock (or pre-funded warrants) along with Series A-1 and A-2 warrants. The offering is priced at $0.60 per share with associated warrants. Both Series A-1 and A-2 warrants have an exercise price of $0.60, with A-1 warrants expiring in 5 years and A-2 warrants in 18 months.

H.C. Wainwright & Co. is serving as the exclusive placement agent. The offering is expected to close around May 16, 2025. The company plans to use the net proceeds for general working capital purposes. The offering is made through an effective SEC registration statement on Form S-1.

Positive

• Access to $2 million in additional capital for working capital purposes
• Successfully secured institutional placement agent H.C. Wainwright & Co.

Negative

• Potential significant dilution for existing shareholders due to new share issuance
• Additional dilution risk from warrant exercises at $0.60 per share
• Low offering price indicating potential market weakness

SARASOTA, FL, May 15, 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, today announced the pricing of a 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 will have an exercise price of $0.60 per share, are exercisable upon issuance and will expire five years thereafter. The Series A-2 Warrants will have an exercise price of $0.60 per share, are exercisable upon issuance and will expire eighteen months thereafter. The closing of the offering is expected to occur on or about May 16, 2025, subject to the satisfaction of customary closing conditions. 

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

The gross proceeds to the Company from the offering are expected to be 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 preliminary prospectus relating to the offering has been filed with the SEC.  When available, 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 completion of the offering, the satisfaction of customary closing conditions related to the offering, 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

What is the size and price of Silo Pharma's (SILO) May 2025 public offering?

Silo Pharma's public offering consists of 3,333,338 shares priced at $0.60 per share, along with Series A-1 and A-2 warrants, for total gross proceeds of approximately $2 million.

How will Silo Pharma (SILO) use the proceeds from its $2M offering?

Silo Pharma intends to use the net proceeds from the $2 million offering for general working capital purposes.

What are the terms of the warrants in Silo Pharma's May 2025 offering?

The offering includes Series A-1 warrants expiring in 5 years and Series A-2 warrants expiring in 18 months, both with an exercise price of $0.60 per share.

Who is the placement agent for Silo Pharma's (SILO) May 2025 offering?

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

When is Silo Pharma's (SILO) public offering expected to close?

The offering is expected to close on or about May 16, 2025, subject to customary closing conditions.