TAO Synergies Announces $11 Million Private Placement

Rhea-AI Summary

TAO Synergies (Nasdaq: TAOX) announced a $11 million private placement dated October 13, 2025 with existing investors, advisor James Altucher, and new investor DCG. The company will sell 11,000 shares of newly issued Series E convertible preferred stock at a stated value of $1,000 per share, convertible at $8.00 per common share, plus five‑year common stock purchase warrants with an $8.00 exercise price. The offering was made to accredited investors under Section 4(a)(2)/Reg D and is expected to close on or about October 15, 2025, subject to customary closing conditions. The company agreed to file registration statement(s) to cover resale of the unregistered securities.

Positive

• $11 million capital raise secured
• Purchase supported by existing investors and new investor DCG
• Series E stated value of $1,000 per share
• Registration rights agreed for resale of unregistered securities

Negative

• Potential dilution of up to 1,375,000 shares on conversion
• Additional dilution possible if warrants are exercised

Insights

Capital markets analyst

TAO Synergies secures a $11 million private placement via convertible preferred stock and warrants, led by existing backers and DCG.

The company sold 11,000 shares of Series E convertible preferred stock at a stated value of $1,000 per share, convertible at $8.00 per share, alongside five‑year warrants exercisable at $8.00. The financing was priced above the five‑day trailing average and closed to accredited investors under Section 4(a)(2) and Regulation D.

Completion depends on customary closing conditions and the expected close on or about Oct. 15, 2025. The company agreed to file registration statements under registration rights; until effective, the securities remain unregistered. Watch for the closing confirmation, the SEC registration filing and timing, and any disclosures on dilution from conversion or warrant exercises.

Financing supported by existing stockholders, TAO Strategy Advisor James Altucher, and new investor DCG

NEW YORK, Oct. 13, 2025 /PRNewswire/ -- TAO Synergies Inc. (Nasdaq: TAOX) (the "Company"), a digital asset treasury company focused on Bittensor (TAO), the premier cryptotoken for decentralized artificial intelligence (DeAI), today announced that it has entered into a securities purchase agreement with existing investors, James Altucher and a new investor, DCG, for a $11 million financing.

"TAO Synergies' latest financing further supports its continuing strategic investments not only in TAO tokens, but also in potential opportunities to earn revenue and accrue additional TAO within the Bittensor ecosystem," said James Altucher. "We are pleased to welcome our new strategic investor DCG, a leader in the cryptocurrency and blockchain industry and a major investor and incubator in the Bittensor ecosystem. We have strong conviction in Bittensor's vision for decentralized intelligence and believe its network model will be a key driver of innovation and value creation in the years ahead."

The financing involves the sale of 11,000 shares of the Company's newly issued Series E convertible preferred stock ("preferred stock"), with a stated value of $1,000 per share which is convertible into shares of the Company's common stock, and associated five-year common stock purchase warrants, in a private placement priced above the five-day trailing average price. The shares of Series E preferred stock have a conversion price of $8.00 per share. The warrants have an exercise price of $8.00 per common share.

The transaction is expected to close on or about October 15, 2025, subject to the satisfaction of customary closing conditions.

The securities described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act") and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants sold in the offering, have not been registered under the Act or applicable state securities laws. Accordingly, such securities 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, the Company has agreed to file one or more registration statements with the SEC covering the resale of the unregistered securities to be issued in the offering.

This press release shall 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 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 TAO Synergies

TAO Synergies Inc. is the first pure-play public company focused on the convergence between cryptocurrency and artificial intelligence. The Company's differentiated cryptocurrency treasury strategy is centered exclusively on the acquisition of TAO, the native cryptocurrency of Bittensor, a decentralized blockchain network for machine learning and AI. TAO Synergies Inc. seeks to stake TAO for revenue generation and capital appreciation, a strategy that underscores its mission to create significant value for shareholders. Visit The Tao Daily, a comprehensive media, news, and insight platform dedicated to Bittensor (TAO) and the TAO ecosystem, and taosynergies.com for more information.

Forward-Looking Statements 

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Such forward-looking statements are subject to risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. These and other factors are identified and described in more detail in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to update these forward-looking statements. 

Contact
800-811-5591
ir@taosynergies.com

View original content:https://www.prnewswire.com/news-releases/tao-synergies-announces-11-million-private-placement-302582503.html

SOURCE TAO Synergies Inc.

FAQ

What did TAO Synergies (TAOX) announce on October 13, 2025?

TAO Synergies announced a $11 million private placement selling 11,000 Series E convertible preferred shares and warrants.

When is the TAOX private placement expected to close?

The transaction is expected to close on or about October 15, 2025, subject to customary closing conditions.

What is the conversion and exercise price in the TAOX financing?

The Series E conversion price is $8.00 per common share and the warrants have an $8.00 exercise price.

How many common shares could TAOX issue if all Series E preferred convert?

If fully converted, the Series E could convert into up to 1,375,000 common shares (11,000×$1,000 ÷ $8.00).

Who are the investors participating in TAOX's $11M financing?

The financing is supported by existing stockholders, advisor James Altucher, and new investor DCG.

Will TAO Synergies register the securities sold in the private placement?

Yes; the company agreed to file one or more registration statements to cover resale of the unregistered securities.