SenesTech announces reduced price warrant exercise

PHOENIX - SenesTech, Inc. (NASDAQ:SNES), a developer of fertility control solutions for rodents with a market capitalization of $3.11 million, disclosed the initiation of definitive agreements for the immediate exercise of certain outstanding warrants. According to InvestingPro analysis, the company is currently trading below its Fair Value, despite showing strong revenue growth of 38% in the last twelve months. These warrants, initially issued on August 23, 2024, and set to purchase 374,718 shares at $4.35 each, will now be exercised at a reduced price of $2.90 per share.

The transaction, expected to close around March 11, 2025, is contingent on Stockholder Approval and customary closing conditions. H.C. Wainwright serves as the exclusive placement agent for the deal. The exercise of these warrants is projected to generate approximately $1.1 million in gross proceeds, excluding placement agent fees and other expenses. This capital raise comes at a crucial time, as InvestingPro data indicates the company has been quickly burning through cash, though it maintains a healthy current ratio of 6.32, suggesting strong short-term liquidity.

In addition, SenesTech plans to issue new short-term warrants in a private placement, which could potentially raise an additional $4.3 million if fully exercised. These new warrants will allow the purchase of up to 1,498,872 shares at the same reduced price of $2.90, becoming exercisable upon Stockholder Approval and expiring eighteen months thereafter.

The shares of common stock issuable upon the exercise of the existing warrants have been registered under an effective registration statement on Form S-3, while the new short-term warrants have not been registered under the Securities Act of 1933 or state securities laws. Consequently, these warrants and the shares they represent may only be offered or sold in compliance with registration requirements or an applicable exemption.

The company anticipates using the net proceeds for working capital and general corporate purposes. SenesTech emphasizes its commitment to humane animal pest management and healthier environments through its products like Evolve™ rodent birth control. For deeper insights into SenesTech’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

This press release contains forward-looking statements, including expectations regarding the closing conditions, intended use of proceeds, and the exercise of the new warrants. These statements are subject to various risks, uncertainties, and other factors that could influence actual results. The information in this article is based on a press release statement.

In other recent news, SenesTech, Inc. has been in the spotlight due to several key developments. The company has seen a significant upgrade in its stock target by H.C. Wainwright, raising the price target to $10.00 from $3.50, while maintaining a Buy rating. This upgrade follows SenesTech’s consistent revenue growth, improved gross profits, and reduced operating costs. The company’s Evolve™ Rodent Birth Control product, its top-selling item, has been instrumental in driving over half of its total revenues. Additionally, SenesTech has expanded its market presence by shipping Evolve to a major warehousing and distribution company in the Midwest, marking its entry into this sector. The product’s availability on TractorSupply.com further enhances its e-commerce reach, complementing its presence on platforms like Amazon and Walmart.com. SenesTech also announced a strategic partnership with Evicom to distribute Evolve in New Zealand and Australia, aligning with New Zealand’s Predator Free 2050 initiative. These recent developments underscore SenesTech’s strategic expansion and focus on sustainable rodent control solutions.

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