Ensysce Biosciences, Inc. (ENSC) stock surged 21.45% in the pre-market trading session at the price of $1.84 after announcing its earnings report for the third quarter of 2021.
Ensysce Biosciences is a clinical-stage biotechnology firm that develops tamper-proof opioids to control overdoses and drug abuse. The company uses its Multi-Pill Abuse Resistance and Trypsin-Activated Abuse Protection platforms to produce safer prescription drugs.
ENSC Third Quarter 2021 Financial Results
On 15th November 2021, ENSC reported its financial results for the third quarter ended 30th September 2021 and presented corporate updates.
Financial Highlights
ENSC reported a net loss of $17.2 million for the third quarter of 2021. For the same period in 2020, net income was $1.6 million. The company acquired $10 million in funding from the convertible note financing on 5th November 2021. For the third quarter of 2021, funding under federal grants totaled $1.2 million. Funding under federal grants was $0.8 million for the same quarter of the previous year.
ENSC reported research and development costs of roughly $1.7 million for the third quarter ended 30th September 2021. R&D expenses were $0.9 million for the three months ended on 30th September of 2020. For the third quarter of 2021, general and administrative costs totaled $16.4 million. G&A expenses were approximately $0.3 million for last year’s same quarter. As of 30th September 2021, ENSC reported cash and cash equivalents of roughly $6.8 million.
Completion of Convertible Note Financing
On 8th November 2021, ENSC published the completion of its private placement for senior secured convertible notes for an aggregate investment of $15 million. The company will use total gross proceeds worth $15 million for its general working capital plans. The first closing provided $5 millions of funding on 24th September 2021. On 5th November 2021, the second closing provided $10 million of funding.
The Notes are exchangeable into common stock shares at a conversion price of $5.87. The Notes had issued with an original discount of 6%. The Warrants have the right to purchase common stock shares at an exercise price of $7.63 and are exercisable for five years after the issuance.