- Ensysce Biosciences (ENSC, Financial) has announced the exercise of warrants amounting to $2.2 million in gross proceeds.
- New unregistered warrants are issued for up to 1,260,752 shares at an exercise price of $1.90 per share.
- Proceeds will aid in the continued development of the company's TAAP™ and MPAR® programs.
Ensysce Biosciences, Inc. (ENSC), a clinical-stage pharmaceutical company, has announced a significant financial development through the execution of outstanding warrants. This transaction is expected to generate approximately $2.2 million in gross proceeds, a crucial cash infusion for the company, representing a substantial portion of its market capitalization.
The agreement involves the immediate exercise of warrants to purchase 630,376 shares of common stock at $3.24 per share. In return, Ensysce Biosciences will issue new unregistered warrants for up to 1,260,752 shares at a significantly reduced exercise price of $1.90 per share. These warrants are divided into two terms: half with an 18-month term and the other half with a 5-year term. The exercise price is notably lower than the current stock price, potentially leading to future dilution if the new warrants are exercised.
H.C. Wainwright & Co. serves as the exclusive placement agent for this offering. The transaction is anticipated to close around April 24, 2025, subject to customary closing conditions. The company plans to utilize the proceeds for the advancement of its proprietary TAAP™ and MPAR® programs and for working capital purposes, which are vital for Ensysce's mission to create tamper-proof pain treatments that mitigate the risk of opioid abuse and overdose.
