Shuttle Pharma Announces Pricing of $5.75 Million Underwritten Offering

Rhea-AI Summary

Shuttle Pharmaceuticals Holdings (Nasdaq: SHPH) has announced the pricing of a $5.75 million underwritten public offering, consisting of 19,166,667 shares of common stock at $0.30 per share. The offering, expected to close on March 13, 2025, is being conducted on a firm commitment basis with WestPark Capital as the Sole Book-Runner.

The net proceeds will fund three key initiatives:

• Phase II clinical trial for lead product candidate
• Marketing and advertising services
• Working capital and general corporate purposes

Shuttle Pharma, founded in 2012 by Georgetown University Medical Center faculty, focuses on improving outcomes for cancer patients treated with radiation therapy by developing radiation sensitizers to enhance treatment effectiveness while limiting side effects.

Positive

• Secured $5.75 million in additional funding
• Firm commitment basis offering provides certainty of capital raise
• Funding secured for Phase II clinical trial advancement

Negative

• Significant shareholder dilution with 19.17M new shares
• Low offering price at $0.30 per share indicates weak market position
• Additional capital raising may be needed for future operations

Insights

Financial Analyst

Shuttle Pharmaceuticals' $5.75 million offering represents a substantial capital raise but comes with significant dilution for existing shareholders. The offering price of $0.30 per share represents a 28.6% discount to the current $0.4201 trading price - a concerning discount that signals weak institutional demand.

The issuance of 19,166,667 new shares will dramatically expand the outstanding share count, causing severe dilution for current investors. Given the company's small market cap of approximately $1.8 million, this offering will more than triple their capital base but at the cost of significant equity dilution.

The allocation of proceeds toward their Phase II clinical trial for their lead radiation sensitizer candidate is strategically sound from an operational perspective. However, the financing structure suggests urgent capital needs and financing alternatives. The addition of "marketing and advertising services" as a use of proceeds is unusual for a clinical-stage pharmaceutical company that typically prioritizes R&D spending.

This offering appears necessary to fund ongoing operations and advance clinical development, but the pricing terms reveal challenging market conditions for SHPH. The firm commitment structure with WestPark Capital as book-runner provides certainty of funding, but investors should recognize this offering significantly alters the company's capital structure and ownership concentration.

Biotech Industry Specialist

This financing round represents a critical inflection point for Shuttle Pharma's radiation sensitizer platform. While securing $5.75 million provides essential runway to advance their lead candidate into Phase II testing, the offering terms reflect the challenging funding environment for early-stage oncology companies with unproven assets.

The company's radiation sensitizer approach targeting improved outcomes for cancer radiotherapy patients addresses a genuine unmet need. Radiation therapy remains a cornerstone of cancer treatment, but enhancing its efficacy while reducing side effects could substantially improve patient outcomes across multiple cancer types.

However, the 28.6% discount to market price suggests institutional investors required significant concessions to participate. This raises questions about market confidence in either the company's technology platform or its execution capabilities. The massive dilution from this offering indicates the company had alternatives to secure necessary capital.

The Georgetown University origins provide some scientific credibility, but investors should note that radiation sensitizer development has historically faced challenges in clinical translation despite strong preclinical rationales. The success of the upcoming Phase II trial will be make-or-break for validating their approach. Without detailed efficacy signals from earlier studies disclosed in this announcement, investors should approach cautiously while acknowledging that positive Phase II data could dramatically change the company's trajectory.

GAITHERSBURG, Md., March 12, 2025 (GLOBE NEWSWIRE) -- Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH) (“Shuttle Pharma”), a discovery and development stage specialty pharmaceutical company focused on improving outcomes for cancer patients treated with radiation therapy (RT), announced today the pricing of an underwritten public offering of 19,166,667 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) at a public offering price of $0.30 per share (the “Offering”). The aggregate gross proceeds to Shuttle Pharma from the Offering are expected to be approximately $5.75 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Shuttle Pharma. The Offering is expected to close on March 13, 2025, subject to the satisfaction of customary closing conditions.

Shuttle Pharma intends to use the net proceeds from the Offering to fund Shuttle Pharma’s Phase II clinical trial for its lead product candidate, for marketing and advertising services, and for working capital and general corporate purposes.

The Offering is being conducted on a firm commitment basis. WestPark Capital, Inc. acted as the Sole Book-Runner in connection with the Offering.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-284889), which was declared effective by the Securities and Exchange Commission (the “SEC”) on March 7, 2025. The Offering is being made only by means of a written prospectus that forms a part of the registration statement. A final prospectus relating to the Offering will be filed with the SEC. When available, copies of the final prospectus relating to the Offering may be obtained from WestPark Capital, Inc., 1800 Century Park East, Suite 220, Los Angeles, CA 90077, tel: 310-203-2919, e-mail: jstern@wpcapital.com and will be available on the SEC’s website.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Shuttle Pharmaceuticals

Founded in 2012 by faculty members of the Georgetown University Medical Center, Shuttle Pharma is a discovery and development stage specialty pharmaceutical company focused on improving the outcomes for cancer patients treated with radiation therapy (RT). Our mission is to improve the lives of cancer patients by developing therapies that are designed to maximize the effectiveness of RT while limiting the side effects of radiation in cancer treatment. Although RT is a proven modality for treating cancers, by developing radiation sensitizers, we aim to increase cancer cure rates, prolong patient survival and improve quality of life when used as a primary treatment or in combination with surgery, chemotherapy and immunotherapy. For more information, please visit our website at www.shuttlepharma.com.

Safe Harbor Statement

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements concerning the development of our company. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The reader is cautioned not to rely on such forward-looking statements. Such forward-looking statements relate to future events or our future performance. In evaluating these forward-looking statements, you should consider various factors, including our expectations regarding the success and/or completion of our Phase 2 clinical trials; our success in completing any newly initiated clinical trials, commencing new trials and obtaining regulatory approval following such trials; challenges and uncertainties inherent in product research and development; the uncertainty regarding future commercial success; risks and uncertainties associated with market conditions and the Company’s ability to satisfy the closing conditions related to the Offering. These and other factors may cause our actual results to differ materially from any forward-looking statements. Forward-looking statements are only predictions and actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the “Risk Factors” section of Shuttle Pharma’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 26, 2025 and Shuttle Pharma’s Registration Statement on Form S-1/A filed with the SEC on March 5, 2025, as well other SEC filings. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, Shuttle Pharmaceuticals specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Shuttle Pharmaceuticals
Anatoly Dritschilo, M.D., CEO
240-403-4212
info@shuttlepharma.com

Investor Contacts
Lytham Partners, LLC
Robert Blum
602-889-9700
shph@lythampartners.com

FAQ

How much did Shuttle Pharmaceuticals (SHPH) raise in their March 2025 public offering?

Shuttle Pharmaceuticals raised $5.75 million through an underwritten public offering of 19,166,667 shares at $0.30 per share.

What is the price per share for SHPH's March 2025 public offering?

The public offering price was set at $0.30 per share.

How will SHPH use the proceeds from their March 2025 offering?

The proceeds will fund their Phase II clinical trial, marketing and advertising services, and working capital and general corporate purposes.

When is SHPH's March 2025 public offering expected to close?

The offering is expected to close on March 13, 2025, subject to customary closing conditions.

Who is the underwriter for SHPH's March 2025 public offering?

WestPark Capital, Inc. acted as the Sole Book-Runner for the offering.