SoFi CEO enters prepaid forward contract on 1.5 million shares
SAN DIEGO - Ensysce Biosciences, Inc. (NASDAQ:ENSC), a clinical-stage pharmaceutical company focused on developing pain relief solutions with a reduced potential for opioid abuse and overdose, has secured approximately $1.1 million through the sale of common stock and warrants. According to InvestingPro data, the company, currently valued at $4.57 million, maintains a healthy balance sheet with more cash than debt, though analysts don’t expect profitability this year. The transaction includes a registered direct offering and a concurrent private placement, expected to close today, subject to customary closing conditions.
In the direct offering, Ensysce sold 315,188 shares (or equivalents) at $3.49 each, priced at-the-market under Nasdaq rules. Additionally, in the private placement, the company agreed to issue unregistered Series A-5 and Series A-6 warrants, each to purchase up to 315,188 shares of common stock. The stock, which has seen significant volatility, currently trades near $3.25, down over 70% in the past year. InvestingPro analysis reveals 13 additional key insights about ENSC’s market position and future prospects. These warrants have exercise prices of $3.24 per share and are exercisable immediately upon issuance. The Series A-5 warrants will last eighteen months, while the Series A-6 warrants extend for five years.
H.C. Wainwright & Co. served as the exclusive placement agent for this offering. The gross proceeds from the sale, before deducting agent fees and other expenses, are expected to be around $1.1 million. Ensysce plans to allocate the net proceeds towards further development of its TAAP™ and MPAR® programs and for working capital purposes.
The securities in the registered direct offering are being sold pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) and declared effective on January 17, 2023. The prospectus supplement related to the offering will be available on the SEC’s website.
The unregistered warrants and the shares of common stock underlying them are offered in a transaction exempt from public offering registration requirements and may not be reoffered or resold in the U.S. without registration or an applicable exemption.
Ensysce Biosciences is advancing a new class of opioids that employ its proprietary Trypsin-Activated Abuse Protection (TAAP™) and Multi-Pill Abuse Resistance (MPAR®) technologies, aiming to create safer treatment options for severe pain and reduce medication abuse-related deaths. Financial data from InvestingPro shows the company achieved impressive revenue growth of 133% in the last twelve months, though it currently operates with negative gross profit margins of -38.57%.
This fundraising move comes as part of Ensysce’s efforts to advance its product pipeline and deliver on its mission to transform the analgesic market. The information for this article is based on a press release statement.
In other recent news, Ensysce Biosciences, Inc. announced positive interim results from a clinical trial of its drug candidate PF614-MPAR, which is designed for overdose protection. The trial, identified as PF614-MPAR-102, tested a 100 mg dosage and demonstrated significant overdose protection when participants consumed a dose greater than prescribed. The study showed a substantially lower maximum blood concentration of oxycodone in subjects taking PF614-MPAR compared to those taking PF614 alone. No unexpected adverse events were reported during the trial. The drug combines an immediate release solution with an extended release capsule and has received Breakthrough Therapy designation from the U.S. Food and Drug Administration. The development of PF614-MPAR is supported by a $14 million award from the National Institute on Drug Abuse. The ongoing trial will further evaluate potential food effects and repeat dosing over several days. These interim results will assist Ensysce in finalizing the drug product for commercialization.
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