Silo Pharma Inc (OTCMKTS: SILO) is likely to scream for the top as soon as the opening bell rings this morning, and for good reason. The company announced that it has entered into a strategic agreement that will pad its balance sheet with $1 million in non-dilutive funding. Here’s what’s going on:
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Silo Pharma Announces Licensing Agreement
In the press release, Silo Pharma said that it entered into an agreement to license technology covered by provisional patent applications. These patent applications were filed by SILO with the United States Patent and Trademark Office surrounding the potential treatment of patients with cancer.
In particular, these patent applications relate to using a novel peptide with Psilocybin as a therapeutic option.
As part of the agreement, SILO will receive an upfront cash payment of $500,000. Moreover, the company will receive equity, currently valued at $500,000 from a NASDAQ listed company.
In a statement, Eric Weisblum, CEO at SILO, had the following to offer:
We are excited about this opportunity as we continue to execute our plan to bring novel therapeutics to patients inflicted with neurological disorders and rare diseases, which we hope will bring about breakthroughs that can lead to improved care. This agreement is structured to provide $500,000 in an upfront cash payment as well as equity currently valued at $500,000 from a NASDAQ listed company. The Agreement also provides for Silo to collect royalties should the technology be commercialized.
Why This News Is Huge
The news released by Silo Pharma this morning proved to be overwhelmingly positive. First and foremost, the company is adding $1 million to its balance sheet as a result of this agreement, and every penny is being added without diluting value for existing shareholders.
Moreover, the agreement serves to validate the company’s work.
Think about it, for some time now, SILO has been explaining that Psilocybin has various therapeutic benefits. Now, a NASDAQ listed company sees value in what the company is doing with the magic mushroom derivative, further serving to validate the company’s efforts.
All in all, this news is exciting and highly likely to move the needle at the open of the market.
The bottom line here is simple. I’ve been outlining the fact that SILO is a heavily undervalued stock embarking on science that has the potential to provide answers for patients with few effective therapeutic options.
Today’s news only serves to validate the company’s work, and my opinion that it is on the right path. All in all, if you’re not paying attention to SILO stock yet, you’re missing out!
Disclaimer: The author is not a financial advisor or broker dealer. The views expressed above are those of the author and not necessarilly those of the publication nor company being covered. CNA Finance has a monetary agreement with Silo Pharma.