Silo Pharma, Inc. (Nasdaq: SILO), a developmental stage biopharmaceutical company, announced today the successful closing of its previously announced public offering, raising approximately $2 million in gross proceeds. The Sarasota, Florida-based company, which focuses on novel therapeutics and drug delivery systems, completed the transaction on May 16, 2025.
The offering consisted of 3,333,338 shares of common stock (or pre-funded warrants in lieu thereof), along with Series A-1 and Series A-2 warrants to purchase up to an additional 3,333,338 shares each. The combined public offering price was set at $0.60 per share and associated warrants.
According to the company's announcement, the Series A-1 warrants have an exercise price of $0.60 per share, are immediately exercisable upon issuance, and will expire after five years. The Series A-2 warrants share the same $0.60 exercise price and immediate exercisability but have a shorter expiration period of eighteen months.
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering, which was conducted through a registration statement on Form S-1 (File No. 333-286777) that was declared effective by the Securities and Exchange Commission on May 15, 2025.
Therapeutic Pipeline and Strategic Focus
Silo Pharma's development portfolio targets several underserved conditions, with a particular focus on stress-induced psychiatric disorders, chronic pain, and central nervous system (CNS) diseases. The company's lead programs include:
- SPC-15, being developed for post-traumatic stress disorder (PTSD)
- SP-26, targeting fibromyalgia and chronic pain
- Preclinical assets aimed at Alzheimer's disease and multiple sclerosis
The company conducts its research in collaboration with leading universities and laboratories, leveraging academic expertise to advance its therapeutic candidates.
Eric Weisblum, CEO of Silo Pharma, commented on the significance of the financing: "This successful offering strengthens our financial position as we continue to advance our innovative pipeline of CNS and pain therapeutics. Our focus remains on addressing conditions with significant unmet medical needs through novel approaches to treatment."
Financial Details and Use of Proceeds
The gross proceeds from the offering amounted to approximately $2 million, before deducting the placement agent's fees and other offering expenses payable by the company. Silo Pharma has indicated that it intends to use the net proceeds for general working capital purposes, which will likely support ongoing research and development activities for its therapeutic candidates.
The offering was conducted under a registration statement filed with the SEC, with a final prospectus relating to the offering filed on May 16, 2025. Electronic copies of the final prospectus are available on the SEC's website and through H.C. Wainwright & Co.
Market Context and Company Outlook
As a developmental stage biopharmaceutical company, Silo Pharma operates in a competitive landscape where capital raising is essential for advancing clinical programs. The company's focus on psychiatric disorders, chronic pain, and CNS diseases addresses significant market opportunities with substantial unmet medical needs.
The global PTSD therapeutics market is projected to grow significantly in the coming years, driven by increasing awareness and diagnosis rates. Similarly, the chronic pain management market represents a multi-billion dollar opportunity, with fibromyalgia affecting an estimated 4 million U.S. adults, according to the CDC.
For Alzheimer's disease and multiple sclerosis, two of the conditions targeted by Silo's preclinical assets, there remains significant need for novel therapeutic approaches despite recent advances in treatment options.
Industry analysts note that while the $2 million raise is relatively modest by biopharmaceutical standards, it provides Silo Pharma with additional runway to advance its programs toward key development milestones that could potentially attract larger partnership or financing opportunities in the future.
