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CAMBRIDGE, Mass. - Ernexa Therapeutics Inc. (NASDAQ:ERNA) completed the second closing of its previously announced securities purchase agreement, raising approximately $6 million in gross proceeds, the cell therapy developer announced Tuesday. The financing comes at a crucial time for the company, which according to InvestingPro data, has been rapidly burning through cash with a concerning current ratio of 0.21, indicating potential liquidity challenges.
The company issued 3,181,145 shares of common stock and 622,134 prefunded warrants in this second closing. This follows an initial closing on April 2, 2025, which generated approximately $1.1 million through the issuance of 662,269 shares and 33,983 prefunded warrants.
A remaining subscription amount of $190,248 for 121,255 shares has not yet been received, according to the company statement based on a press release.
The second closing required stockholder approval under Nasdaq listing rules, which was obtained at Ernexa’s annual meeting on June 2, 2025.
The financing announcement comes as the company’s stock has experienced significant volatility, with InvestingPro data showing a 91% decline over the past year. "This financing strengthens our balance sheet and provides critical runway to advance our pipeline of cell therapies targeting cancers and autoimmune diseases," said Sanjeev Luther, President and CEO of Ernexa Therapeutics.
The company plans to use the net proceeds for general working capital and to repay certain notes. The prefunded warrants have a nominal exercise price of $0.075 per share.
Ernexa Therapeutics focuses on developing cell therapies for advanced cancer and autoimmune diseases. Its technology centers on engineering induced pluripotent stem cells and transforming them into induced mesenchymal stem cells. The company’s lead product, ERNA-101, is designed to treat ovarian cancer. With a market capitalization of $17.67 million and impressive gross profit margins of 93.46%, the company shows potential despite current challenges. InvestingPro subscribers can access 12 additional key insights and detailed financial metrics to better evaluate the company’s prospects.
All share amounts reflect a 1-for-15 reverse stock split that took effect on June 12, 2025.
In other recent news, Ernexa Therapeutics has announced a 1-for-15 reverse stock split, aiming to consolidate its shares and meet Nasdaq’s minimum bid price requirement. This move will reduce the number of outstanding shares from approximately 110.4 million to about 7.4 million, with no fractional shares issued. The reverse split was approved by shareholders and is part of Ernexa’s strategy to maintain access to capital markets. Additionally, Ernexa reported promising results from a study on its cell therapy product, ERNA-101, for ovarian cancer, showcasing its potential to slow tumor growth and enhance immune response. The study’s findings were presented at the AACR Annual Meeting 2025 in Chicago. In financial developments, Ernexa completed a securities purchase agreement to raise capital, involving the sale of 58.3 million shares and pre-funded warrants. The company also announced a corporate rebranding from Eterna Therapeutics to Ernexa Therapeutics, effective March 26, 2025, as part of its evolving business strategy. These developments reflect Ernexa’s ongoing efforts to strengthen its financial position and advance its clinical programs.
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