Silo Pharma Plunges 12.88% on $2M Public Offering

On May 16, 2025, Silo Pharma experienced a significant drop of 12.88% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

Silo Pharma recently announced the pricing of a $2 million public offering, which included the issuance of 3.33 million shares of common stock. The offering also featured Series A-1 and A-2 warrants, with exercise prices set at $0.60 per share. These warrants are exercisable upon issuance and will expire within 18 months, providing investors with options to purchase additional shares at a predetermined price.

The public offering is expected to generate approximately $2 million in gross proceeds for the company, before accounting for placement agent fees and other expenses. This capital raise is aimed at supporting Silo Pharma's ongoing operations and potential expansion initiatives. However, the dilution effect of issuing new shares has raised concerns among existing shareholders, who may see a reduction in their ownership stakes.