NEW JERSEY , Dec. 04, 2020 (GLOBE NEWSWIRE) — Silo Pharma, Inc. (OTCQB: SILO) a developmental stage biopharmaceutical company focused on the use of psilocybin as a therapeutic, today announced that it has been requested by the OTC Markets Group (“the OTC Markets”) to comment on recent promotional activity.
The Company became aware of certain promotional activities concerning its common stock on December 1, 2020, through a notification from OTC Markets, which included three (3) electronic newsletters (collectively, the “Materials”) prepared by third parties; one of which was prepared and circulated by each of Profitable Trader Authority, Penny Stock Prophet and OTC TIP Reporter, respectively. The Company was not aware of the Materials prior to receiving copies from the OTC Markets.
Beginning in May 2020, the Company has used Hayden IR as its investor relations firm. Hayden’s role is to provide certain investor/public relations, internet development, communications and consulting services on the Company’s behalf. In addition, in October 2020, the Company engaged Emerging Markets Consulting, LLC to assist with the design, development and dissemination of corporate information, and it engaged CNA Finance, LLC and Jolt Communications, Inc. to provide certain marketing services and strategic advice, including the preparation of a feature articles, assistance with publication of unique and industry articles, and dissemination of content via social media and traditional channels.
Based upon inquiry of management, directors, control persons and third-party service providers, neither the Company, nor its officers were involved, directly or indirectly, with the creation, distribution or payment of the Materials, nor did they have notice of or editorial control over the content of the Materials prior to their dissemination. In addition, based upon inquiry of third-party service providers engaged by the Company to provide investor relations services, public relations services, marketing, or other related services including promotion of the Company or its securities in the last twelve months, the materials were unrelated to any work performed by any of the third-party providers .
The Company acknowledges that the distribution of the materials coincided with higher than average trading volume in the Company’s common stock, however, the Company has no knowledge or opinion as to whether or not the materials themselves affected trading activity. Many other factors, including but not limited to recently issued press releases, could have had an impact on trading volume. Specifically, on December 2, 2020, the Company announced that it has entered into an investigator-sponsored study agreement with Maastricht University of the Netherlands for a Phase 2B Investigator lead study using psychedelics psilocybin and LSD to treat Parkinson’s Disease. This announcement follows the Company’s efforts, which began earlier this year, to explore opportunities to expand its business by seeking to acquire and/or develop intellectual property or technology rights from universities and researchers to treat rare neurological disorders. Additional significant actions taken and announcements made by the Company this year have included the formation of a wholly-owned subsidiary, Silo Pharma, Inc., in the State of Florida, securing of the domain name www.silopharma.com, the completion of an approximately $2.5 million private placement offering of common stock, the listing on the OTCQB Venture Market, addition of Kevin Munoz MD to its Board of Directors, entering into of a commercial evaluation agreement with the University of Maryland Baltimore for Central Nervous-Homing Peptides, creation a Scientific Advisory Board and appointment of Dr. Matthew Hopkins of Johns Hopkins University and Dr. Joshua Woolley of University of California, San Francisco, and the filing of three U.S. provisional patent applications with the U.S. Patent and Trademark Office pertaining to the central nervous system delivery of unique anti-inflammatory therapeutics coupled with psilocybin. The Company believes that such actions and announcements may have been a significant factor in the increase in the trading volume of its common stock.
The Company recognizes that the statements made by the unrelated third parties may be deemed to have encouraged investors to purchase common stock of the Company in the open market. Further, the Company has determined that certain statements included in the Materials might be misleading and/or incomplete. The Company disclaims any potentially misleading or exaggerated statements in the materials, and readers of the materials should not place undue reliance on the materials. The Company does not condone the use of sensational language to describe the Company’s business prospects or any statements made regarding the urgency of investing in the Company’s common stock, or any other similar statements. The Company further notes that investing in the Company’s securities involves certain risks and uncertainties that investors should review prior to making any investment decision. The Company encourages all investors to undertake proper due diligence and carefully consider all investment decisions and directs all potential investors to rely on its filings and disclosures made with the SEC, which are accessible at www.sec.gov and available on the disclosure page for SILO on the OTC Markets website at www.otcmarkets.com.
Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
The OTC Markets has further requested that the Company state whether it has issued any shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance. The Company represents, as disclosed in its filings with the Securities and Exchange Commission (“SEC”), that is has issued instruments allowing conversion to equity securities at fixed prices constituting a discount to the current market rate at the time of the issuance, as more fully described below.
In April 2013, the Company entered into a Stock Purchase Agreement with an accredited investor for the sale of 4,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”) for $400,000. In October 2019, the Company entered into a Securities Purchase Agreements with accredited investors for the sale of a convertible promissory note in the aggregate principal amount of $330,000 (the “Notes”), and a warrant to purchase up to 1,650,000 shares of the Company’s common stock, for net proceeds of $295,000, net of origination issue discount of $30,000 and fees of $5,000. In November 29, 2019, the Company entered into a Series B Preferred Stock Purchase Agreements with accredited investors for the sale of an aggregate of 115 shares of the Company’s Series B Preferred stock (the “Series B Preferred Stock”), plus warrants to purchase an aggregate of 575,000 shares of common stock, exercisable at a price of $0.20 per share, for gross proceeds of $115,000. In April 2020, the Company entered into Exchange Agreements with the holders of our Series B Convertible Preferred Stock pursuant to which the holders agreed to exchange their Series B Preferred Stock for an aggregate of 1,437,500 shares of our Common Stock, at a price of $0.08 per share, and with the holders of our Notes pursuant to which the holders agreed to exchange their Notes for an aggregate of 4,125,000 shares of our Common Stock, at a price of $0.08 per share. After the exchanges, there are no share of our Series B Convertible Preferred Stock or Notes outstanding. On August 3, 2020, we converted 4,000 Series A Preferred Stock into 2,000,000 shares of our common stock, at a price of $0.20 per share. After the conversion, there are no shares of our Series A Preferred Stock outstanding.
About Silo Pharma
Silo Pharma, Inc. is a developmental stage biopharmaceutical company focused on merging traditional therapeutics with psychedelic research for people suffering from indications such as depression, PTSD, Parkinson’s, and other rare neurological disorders. Silo’s mission is to identify assets to license and fund the research which we believe will be transformative to the well-being of patients and the health care industry. For more information, visit www.silopharma.com.
Safe Harbor and Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of words “could”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “may”, “continue”, “predict”, “potential” and similar expressions that are intended to identify forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Silo Pharma, Inc. (“Silo” or “the Company”) to differ materially from the results expressed or implied by such statements, including changes to anticipated sources of revenues, future economic and competitive conditions, difficulties in developing the Company’s technology platforms, retaining and expanding the Company’s customer base, fluctuations in consumer spending on the Company’s products and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company disclaims any obligations to publicly update or release any revisions to the forward-looking information contained in this presentation, whether as a result of new information, future events or otherwise, after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law.
Investor Relations Contact: