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Shuttle Pharmaceuticals Announces Private Placement of $4.3 Million of Senior Secured Convertible Note and Warrants ROCKVILLE, Md.

Key Takeaway: Shuttle Pharmaceuticals Holdings, Inc. has announced a private placement of a $4.3 million senior secured convertible note and warrant to an institutional investor. The company is set to receive initial gross proceeds of $4 million, with the potential for an additional $2.4 million if the attached warrants are exercised. This funding aims to support Shuttle's mission to enhance cancer patient outcomes during radiation therapy while minimizing side effects. The note includes flexible repayment options and bears an interest rate of 5% per annum.

Market Sentiment Analysis

POSITIVE FACTORS

  • Secured $4.3 million for development projects.
  • Potential for additional proceeds of $2.4 million from warrants.
  • Focus on improving cancer treatment outcomes.
  • Convertible note structure provides flexible payment options.

CONCERNS & RISKS

  • Convertible note bears interest at 5%, increasing financial obligations.
  • Funding reliant on the exercise of warrants by investors.
  • Market risks associated with the performance of Shuttle Pharmaceuticals stock.

Full Press Release Details

Pharmaceuticals Announces Private Placement of $4.3 Million of Senior Secured Convertible Note and Warrants
Md., Jan. 12, 2023 /PRNewswire/ - Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH), a discovery and development stage
specialty pharmaceutical company focused on improving the outcomes of cancer patients treated with radiation therapy (RT) while reducing
side effects, announced the issuance of a $4.3 million senior secured convertible note and warrant to an institutional investor. Shuttle
Pharmaceuticals will receive initial gross proceeds of $4.0 million. In addition, the four-year warrant to purchase up to approximately
1.018 million shares of Shuttle Pharmaceuticals' common stock at an exercise price of $2.35 per share, upon exercise, would result
in additional proceeds of approximately $2.4 million if the warrants are exercised by the investor.
note amortizes on a monthly basis and Shuttle Pharmaceuticals can make such monthly amortization payments in cash or, subject to equity
conditions, in registered common stock or a combination thereof. For equity repayment, the security is convertible into shares of Shuttle
Pharmaceuticals' common stock at the lower of (i) $2.35 (ii) 90% of the three lowest daily VWAPs of the 15 trading days prior to
the payment date or (iii) 90% of the VWAP of the trading day prior to payment date. The convertible security is repayable over 26 months
and bears interest at the rate of 5% per annum.
Securities, LLC acted as placement agent for the offering.
Shuttle Pharmaceuticals
in 2012 by faculty members of the Georgetown University Medical Center, Shuttle Pharmaceuticals is a discovery and development stage
specialty pharmaceutical company focused on improving the outcomes of 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 www.shuttlepharma.com.
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
relating to the expected trading commencement and closing dates. 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. 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 the IPO prospectus filed with the SEC. 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.
more information, please contact:
Anatoly Dritschilo, M.D., CEO
Lytham Partners, LLC
Robert Blum, Joe Dorame or Joe Diaz

Frequently Asked Questions

What is the purpose of Shuttle Pharmaceuticals' recent funding?

Shuttle Pharmaceuticals aims to improve cancer treatment outcomes while reducing side effects.

How much has Shuttle Pharmaceuticals raised in their private placement?

Shuttle Pharmaceuticals announced a $4.3 million senior secured convertible note offering.

What is the exercise price for the warrants issued?

The exercise price for the warrants is set at $2.35 per share.

What is the interest rate on the convertible note?

The convertible note bears an interest rate of 5% per annum.

When was Shuttle Pharmaceuticals founded?

Shuttle Pharmaceuticals was founded in 2012 by Georgetown University Medical Center faculty.

Last updated: Jan 12, 2023