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Shuttle Pharmaceuticals Holdings, Inc. (NASDAQ:SHPH), a biopharmaceutical company, has finalized a funding round with $790,000 in gross proceeds, according to a recent 8-K filing with the Securities and Exchange Commission. The Delaware-based company, which specializes in pharmaceutical preparations, announced the completion of its offering on Monday, October 21, 2024.
The offering consisted of senior secured convertible notes and warrants, which closed with an additional $231,579 in investments. This second closing brought in $220,000 in proceeds, adding to the initial $600,000 secured in investments on Thursday, October 14, 2024. Notably, the company's CEO, Dr. Anatoly Dritschilo, contributed $237,500 to the first closing.
Investors in the second closing received convertible notes and 88,544 warrants, with the warrants exercisable at $1.49 per share, which is 125% of the closing price of Shuttle Pharmaceuticals' common stock the day before the closing.
This move by Shuttle Pharmaceuticals comes as the company continues its efforts to advance its pharmaceutical development programs. The funding is expected to support ongoing research and development activities.
The information about the closing of the funding round and the specifics of the securities offered is based on the company's latest SEC filing.
In other recent news, Shuttle Pharmaceuticals has made significant strides in its glioblastoma treatment trials and secured a patent for selective histone deacetylase (HDAC) inhibitors aimed at enhancing cancer treatments. The company has expanded its Phase 2 clinical trial for glioblastoma therapy to include two additional sites.
Furthermore, Shuttle Pharmaceuticals has been granted a U.S. patent for its selective HDAC inhibitors, a significant advancement in its quest to enhance cancer treatments.
In the financial realm, the company is grappling with a Nasdaq delisting over an equity shortfall and is actively exploring options to regain compliance. Shuttle Pharmaceuticals has also entered into an Amendment Agreement with Alto Opportunity Master Fund, which includes a $600,000 payment as collateral on an outstanding $1.2 million note.
The company's stockholders approved a one-for-eight reverse stock split and plan to restate its financial statements for 2022 and the first quarter of 2024 due to identified accounting errors, which will increase the net loss attributable to common stockholders from $3.1 million to $3.7 million for 2022.
In addition to these developments, Shuttle Pharmaceuticals has published promising research on a new compound, SP-1-303, showing potential in inhibiting the growth of estrogen receptor-positive breast cancer cells.
Lastly, the company announced executive team changes, with the appointment of Timothy Lorber as the new Chief Financial Officer, while Michael Vander Hoek, the current CFO, will focus on his role as Vice President of Regulatory.
These are the recent developments for Shuttle Pharmaceuticals.
InvestingPro Insights
Shuttle Pharmaceuticals' recent funding round of $790,000 comes at a critical time for the company, as revealed by InvestingPro data. The company's market capitalization stands at a modest $2.86 million, reflecting its current position in the pharmaceutical sector. This capital raise is particularly significant given that SHPH is "quickly burning through cash," according to an InvestingPro Tip.
The company's financial health presents a mixed picture. On one hand, SHPH "holds more cash than debt on its balance sheet," which is a positive sign for its short-term liquidity. However, the company is "not profitable over the last twelve months," with an adjusted operating income of -$5.75 million for the last twelve months as of Q2 2024.
Investors should note that SHPH has seen a "significant return over the last week," with a 7.98% price total return. This recent uptick contrasts sharply with its longer-term performance, as the stock has "fallen significantly over the last three months" (-61.5%) and "taken a big hit over the last six months" (-59.76%).
For those considering an investment in SHPH, it's worth noting that InvestingPro offers 11 additional tips for this stock, providing a more comprehensive analysis of its potential. These insights could be particularly valuable given the company's recent funding activities and its current market position.
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