Enveric Biosciences, (NASDAQ: ENVB), raised $5,000,000 through an IPO on Thursday, a day after it had reversed its stock split in order to keep its Nasdaq listing. The newly-consolidated shares of the company plunged sharply.
The price of 1,67 million shares was $3, which is well below Thursday’s $3.90 adjusted for split-adjustment closing price. The stock sale came immediately after Enveric completed a 1-for-15 reverse split on Wednesday – a move designed to lift its shares above Nasdaq’s $1 minimum requirement and allow further fundraising.
As of the time of publication, shares had fallen by over 40% on Friday in pre-market trade to $2.32. This offering includes Series A warrants that expire in five years, and Series B warrants that expire in 18 months.
Enveric has also announced that the U.S. Patent and Trademark Office granted a Notice Of Allowance for its lead molecule EB003, a compound neuroplastogenic being developed as a treatment for depression and anxiety.
According to CEO Joseph Tucker, the patent includes compositions and methods of using novel tryptamine-derived compounds that enhance neuroplasticity while preventing hallucinations.
Tucker, in a press release said that the EB-003 may allow for treatment to take place without a health professional present. “This would mark a significant shift compared to previous generations of psychedelics,” Tucker added.
Enveric’s third-quarter 2024 loss was $2.1m, compared to $2.8m in the 2023 period. At the end of September 30, Enveric had cash in excess of $3.1 million.
As it progresses EB003 to clinical trials, the company intends to use proceeds from this offering for product development.