Sarasota biopharmaceutical company raises $2.5M with stock offering

A Sarasota biopharmaceutical company raised $2.5 million through a registered direct offering this week. Silo Pharma (Nasdaq: SILO) closed its previously announced offering Oct. 1 for the purchase and sale of 2,857,143 shares of common stock at a price of $0.875 per share, according to a statement. 

In a concurrent private placement, the company issued unregistered warrants to purchase up to 2,857,143 shares of common stock at an exercise price of $0.75 per share that are immediately exercisable upon issuance and will expire five years from the effective date.

New York-based H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

While the gross proceeds from the offering were about $2.5 million, placement agent fees and other offering expenses owed by the company will be deducted, according to the statement.

Silo Pharma plans to use the net proceeds from the offering for working capital and general corporate purposes.

Headquartered at 677 N. Washington Blvd., Silo Pharma reported $72,102 in revenue and a $4.39 million net loss in 2024, compared with $72,102 in revenue and a $3.7 million net loss in 2023.

Silo Pharma is a developmental-stage biopharmaceutical company focused on stress-induced psychiatric disorders, chronic pain and central nervous system diseases. In August, it also launched a cryptocurrency treasury strategy targeting multi-chain asset growth.