SenesTech announces $4.4 million from warrant exercise transaction

SURPRISE, Ariz. - SenesTech, Inc. (NASDAQ:SNES), a fertility control company for animal pest populations trading at $5.09 per share with a market cap of $9.2 million, announced Tuesday it has entered into definitive agreements for the immediate exercise of certain outstanding warrants to purchase 1,458,872 shares of common stock at $2.90 per share. The company has demonstrated strong momentum, with revenue growing 40% in the last twelve months.

The transaction is expected to generate approximately $4.4 million in gross proceeds before deducting placement agent fees and other expenses, a crucial capital raise for the company which InvestingPro data shows has been quickly burning through cash despite maintaining more cash than debt on its balance sheet. H.C. Wainwright is acting as the exclusive placement agent for the transaction.

As part of the agreement, SenesTech will issue new unregistered short-term warrants to purchase up to 1,458,872 shares of common stock at an exercise price of $4.15 per share. These new warrants will be priced at $0.125 per warrant in a private placement priced at-the-market under Nasdaq rules.

The new warrants will be exercisable immediately and expire fifteen months after the effective date of the resale registration statement. If fully exercised, these warrants could potentially generate an additional $6.0 million in gross proceeds.

SenesTech plans to use the net proceeds for working capital and general corporate purposes, according to the press release statement.

The transaction is expected to close on or about July 1, subject to customary closing conditions. While the resale of shares from the existing warrants has been registered under an effective registration statement, the new short-term warrants have not been registered under the Securities Act of 1933.

SenesTech develops and markets fertility control products for managing animal pest populations, including ContraPest, an EPA-registered contraceptive for rats, and Evolve products for rodents. The stock has shown significant momentum, returning over 53% in the past six months. InvestingPro subscribers have access to 13 additional key insights about SNES, including detailed analysis of its financial health score of 2.37 and comprehensive growth metrics.

In other recent news, SenesTech reported a 17% increase in revenue for the first quarter of 2025, reaching $485,000. The company’s EVOLVE product line saw a significant sales surge, accounting for 79% of total sales and contributing to an improved gross margin of 64.5%. This marks the ninth consecutive quarter of year-over-year revenue growth for SenesTech. Additionally, the company registered an additional $711,227 worth of common stock for sale under its existing at-the-market offering program, expanding its ability to raise capital. The shares are being offered through H.C. Wainwright & Co., LLC. SenesTech also announced deployments of its EVOLVE product in major U.S. cities, including Chicago and New York, with plans for further international expansion. The company is targeting cash flow breakeven at $1.5 million in quarterly revenue. Despite challenges in international market approvals, SenesTech continues to focus on high-margin products and expanding its reach in municipal and international markets.

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