Silo Pharma to Issue 619,965 Shares, Raise $4M Upfront and $11.7M Potential
SILO•Silo Pharma will issue 619,965 common shares (or pre-funded warrants) and matching series of warrants at $6.452 per share, generating $4 million upfront and up to $7.7 million if all warrants are exercised. Warrants have a $6.21 exercise price and expire in a tiered 18-month or five-year structure.
1. Offering Structure
Silo Pharma entered agreements to issue 619,965 common shares or pre-funded warrants and equal numbers of Series A-3 and Series A-4 warrants at an at-the-market price of $6.452 per share or pre-funded warrant. H.C. Wainwright & Co. is serving as exclusive placement agent.
2. Expected Proceeds and Use
The company expects to receive approximately $4 million in gross proceeds upon closing, before fees and expenses, with the potential to collect an additional $7.7 million if all warrants are exercised for cash. Net proceeds are earmarked for working capital and general corporate purposes.
3. Warrant Terms
All warrants are exercisable immediately at a $6.21 strike price. The short-term Series A-4 warrants expire 18 months after the effective date of the resale registration statement, while the Series A-3 warrants expire five years after that effective date.
4. Stock Impact and Dilution
This financing will increase the company’s share count and introduce potential dilution if warrants are exercised, but it bolsters cash runway for Silo’s developmental-stage biopharmaceutical programs addressing psychiatric, pain and CNS indications.
