Silo Pharma, Inc. (NASDAQ: SILO) shares lost strength Friday. Silo, a diversified developmental-stage biopharmaceutical company with a therapeutic focus on addressing underserved conditions, including stress-induced psychiatric disorders, chronic pain, and central nervous system (CNS) diseases, today announced that it has entered into definitive agreements for the issuance and sale of 619,965 shares of its common stock (or pre-funded warrants in lieu thereof), Series A-3 warrants to purchase up to an aggregate of 619,965 shares of common stock and short-term Series A-4 warrants to purchase up to an aggregate of 619,965 shares of common stock, at a purchase price of $6.452 per share (or pre-funded warrant in lieu thereof) and associated warrants in a private placement priced at-the-market under NASDAQ rules.
“The warrants,” according to this morning’s news release, “will have an exercise price of $6.21 per share and will be exercisable immediately upon issuance. The Series A-3 warrants will expire five years after the effective date of the Resale Registration Statement (as defined below) and the short-term Series A-4 warrants will expire eighteen months after the effective date of the Resale Registration Statement.”
The aggregate gross proceeds to the Company from the offering are expected to be approximately $4 million, before deducting placement agent fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the warrants, if fully exercised on a cash basis, will be approximately $7.7 million.
SILO sank $1.51, or 19.5%, to $6.22.
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