Silo Pharma Inc. (NASDAQ:SILO) shares dropped 22% on Friday after the company announced an at-the-market private placement that could raise up to $11.7 million under Nasdaq regulations.
The clinical-stage biopharmaceutical company has entered into definitive agreements to issue and sell 619,965 shares of common stock together with Series A-3 and Series A-4 warrants, each covering the purchase of up to 619,965 additional shares. The securities are being offered at a combined purchase price of $6.452 per share and related warrants.
The transaction is expected to generate approximately $4 million in gross proceeds at closing, before placement agent fees and other offering-related costs. Silo Pharma could secure a further $7.7 million if all warrants are exercised for cash, although the company noted there is no guarantee that the warrants will be exercised.
Both warrant series carry an exercise price of $6.21 per share and become exercisable immediately upon issuance. The Series A-3 warrants will remain valid for five years from the effective date of the Resale Registration Statement, while the Series A-4 warrants will expire eighteen months after the same date.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the financing, which is scheduled to close on or around July 10, 2026, subject to the satisfaction of customary closing conditions.
Silo Pharma said it plans to use the net proceeds to support working capital requirements and other general corporate purposes. The company is focused on developing therapies targeting stress-related psychiatric conditions, chronic pain and diseases affecting the central nervous system.