In all previous articles on Silo Pharma Inc (OTCMKTS: SILO) I’ve focused the brunt of the conversation on the company’s work in the combination of modern medicine and psychedelics, work that’s proving to yield promising results. Not to mention its recent entrance into the homing peptides space targeting Rheumatoid Arthritis and other autoimmune disorders.
However, in recent articles, you may have noticed something new. The mention of Silo Pharma’s ownership of DatChat Inc (NASDAQ: DATS) stock, a million shares of it to be exact.
Why is this ownership such a big deal?
Silo’s Balance Sheet Is Benefiting Greatly From DatChat Growth
The big deal is how well the company’s IPO went and the benefits Silo’s balance sheet has seen since the IPO. On the close of the company’s first trading day, its shares were worth $3.42 each, meaning that in August, on the date of the IPO, Silo Pharma’s balance sheet got a $3.42 million injection.
Looking at DATS today, you’ll see the growth has been tremendous. At the moment, DatChat shares are worth about $12. Think about what that means for Silo Pharma’s balance sheet and its valuation.
I already believed that Silo was significantly undervalued, and has been for months, but its ownership of DatChat shares brings its undervaluation to the extreme. In fact, these shares represent around two-thirds of the company’s entire market cap.
That gives very little value to the company’s recent patent applications, its work with the University of Maryland, Baltimore on the development of homing peptides for rheumatoid arthritis and other autoimmune disorders, and its work with Maastricht University in the study of psilocybin as a therapeutic for Parkinson’s Disease.
The bottom line here is simple, there’s a clear undervaluation in SILO. This was my belief before the IPO of DATS, but with the value the ownership of shares has added to the company’s balance sheet, the undervaluation is far more clear. Should DATS continue on the upward trend it’s been on since the IPO, the value of shares owned by Silo could quickly become less than the value of the million shares owned on the company’s balance sheet. All told, this looks like a huge opportunity in the making.
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Disclosure. CNA Finance is not a financial advisor or broker dealer. Trading in penny stocks can lead to a significant loss of capital. CNA Finance has a financial relationship with Silo Pharma.