Ensysce Biosciences Secures Second \$2 Million Tranche from \$20 Million Financing Agreement to Advance Groundbreaking Pain Programs

Key Developments and Investment Highlights

Ensysce Biosciences, Inc. (NASDAQ: ENSC), a clinical-stage biopharmaceutical company focused on developing innovative pain management solutions with built-in abuse and overdose protection, has announced the successful closing of a second convertible preferred stock financing of \$2 million. This funding is part of a previously established commitment from November 2025, which provides access to up to \$20 million over a 24-month period.

• Second Tranche Secured: The latest \$2 million investment comes under a larger financing agreement, demonstrating ongoing investor support for Ensysce’s business strategy and R&D pipeline.
• Convertible Preferred Stock Terms: The tranche features a fixed conversion price of \$0.55 per share, with an alternate conversion price tied to the average market price of Ensysce’s common stock prior to conversion.
• Warrant Coverage: Investors receive 100% warrant coverage with an 18-month term and an additional 100% warrant coverage with a five-year term. Both warrant tranches are exercisable at the fixed conversion price, with standard adjustment provisions.
• Use of Proceeds: The capital will finance Ensysce’s flagship analgesic programs and support general corporate initiatives, ensuring operational momentum and continued R&D progress.
• Federal Grant Support: Supplementary funding from federal grants, particularly for Ensysce’s Multi-Pill Abuse Resistance (MPAR^®) program, further strengthens the company’s financial position.

CEO Commentary

Dr. Lynn Kirkpatrick, CEO of Ensysce Biosciences, emphasized the importance of this financing round, stating: “This financing reflects continued investor confidence in Ensysce’s differentiated analgesic programs, which we believe have the potential to reinvent pain management. Along with additional funds through our federal grant support for our MPAR program, we continue to advance the development of transformative treatments for patients in severe pain.”

About Ensysce Biosciences and Its Technology

Ensysce Biosciences is driving innovation in the field of severe pain treatment by developing a new class of highly novel opioids. The company’s proprietary Trypsin-Activated Abuse Protection (TAAP™) and Multi-Pill Abuse Resistance (MPAR^®) platforms are designed to deliver tamper-proof and safe pain management options that minimize the risks of drug abuse and overdose. Ensysce’s pipeline is underpinned by a robust global intellectual property portfolio, positioning the company as a leader in next-generation analgesic solutions.

Potential Shareholder Impacts & Price-Sensitive Information

• Share Dilution Risk: The convertible preferred stock arrangement and associated warrants may result in dilution for existing shareholders if the instruments are converted or exercised at the specified prices.
• Financing Confidence: The securing of this second tranche reinforces investor confidence in Ensysce’s business model and may be interpreted positively by the market, potentially impacting the share price.
• Regulatory and Clinical Progress: While the company’s products are still in clinical development and not yet approved, the ongoing funding supports critical clinical milestones that could be value drivers if achieved.
• Grant Support: Additional non-dilutive federal grant funding for the MPAR program provides financial stability and reduces dependency on equity financing.

Forward-Looking Statements and Risks

Investors should note that Ensysce’s product candidates are still undergoing clinical testing and have not received regulatory approval. There are inherent risks and uncertainties, including potential delays in clinical development, inability to demonstrate safety and efficacy, regulatory hurdles, and the risk of dilution from further capital raises. The company’s business is also subject to risks related to partnerships, intellectual property, and commercial success of its pipeline.

Contacts

Company Contact:
Lynn Kirkpatrick, Ph.D., CEO — (858) 263-4196

Investor Relations Contact:
Shannon Devine, MZ North America — Main: 203-741-8811, [email protected]

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current expectations. Investors should consult Ensysce Biosciences’ filings with the SEC and consider seeking professional advice before making investment decisions.

View Ensysce Biosciences, Inc. Historical chart here