SAN DIEGO, CA - Ensysce Biosciences, Inc. (NASDAQ:ENSC), a biotech firm focused on enhancing prescription drug safety, has announced agreements for the immediate exercise of certain outstanding warrants to purchase shares at a reduced price. The transaction involves warrants originally issued in May 2023, which are now exercisable at $1.31 per share, down from $3.637. This move is expected to generate approximately $4.7M in gross proceeds for the company, before accounting for fees and expenses.
The exercised warrants will allow the purchase of up to 3,601,752 shares of common stock, with the shares being registered under a Form S-1 registration statement. In return for the immediate cash exercise of the warrants, Ensysce will issue new unregistered warrants for up to 7,203,504 shares of common stock at an exercise price of $1.06 per share. These new warrants will be immediately exercisable, with half expiring on May 12, 2028, and the remainder having an eighteen-month term from the issuance date.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is slated to close around February 14, 2024, subject to standard closing conditions. Ensysce plans to allocate the net proceeds to prepare for Phase 3 clinical trials of its lead agent PF614, repay debt incurred in late 2023, and for general corporate objectives.
The new warrants were offered privately in compliance with exemptions from the Securities Act of 1933 registration requirements. These securities, along with the shares of common stock upon their exercise, are not registered under the 1933 Act and cannot be offered or sold in the U.S. without SEC registration or an exemption. The company has committed to filing a registration statement with the SEC for the resale of the shares from the new warrants.
This development is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities. Ensysce Biosciences is advancing its proprietary platforms to develop prescription drugs that aim to reduce the risk of abuse and overdose, particularly in pain management treatments.
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