Ensysce Biosciences Announces Results of Special Meeting of Stockholders

Rhea-AI Summary

Ensysce Biosciences held a special meeting of stockholders on September 8, 2022, where key resolutions were approved. Stockholders voted in favor of:

• Issuing shares of common stock to certain investors, ensuring compliance with Nasdaq Listing Rule 5635(d).
• Implementing a Reverse Stock Split at a ratio between one-for-five and one-for-twenty.
• Increasing the number of authorized shares of common stock.

The decisions aim to strengthen the company’s capital structure and support ongoing clinical development initiatives.

Positive

• Approval of share issuance to comply with Nasdaq regulations.
• Adoption of a reverse stock split to potentially enhance stock price.
• Increase in authorized shares allows for future capital raising.

Negative

• Reverse stock split may dilute existing shareholder value.
• Reliance on investor confidence for share issuance could signal underlying financial instability.

SAN DIEGO, CA / ACCESSWIRE / September 8, 2022 / Ensysce Biosciences, Inc. ("Ensysce" or the "Company") (NASDAQ:ENSC)(OTC PINK:ENSCW), a clinical-stage biotech company applying transformative chemistry to improve prescription drug safety to reduce abuse and overdose, today announced the results of the special meeting of stockholders held September 8, 2022. This meeting was held virtually, and the following resolutions were submitted and adopted by the stockholders:

• The approval of, for purposes of complying with Nasdaq Listing Rule 5635(d), the full issuance and exercise of shares of common stock issued by the Company to certain investors.
• The approval of an amendment to our Certificate of Incorporation to authorize the Company's Board of Directors to combine outstanding shares of the Company's common stock into a lesser number of outstanding shares, a "Reverse Stock Split," by a ratio of not less than one-for-five and not more than one-for-twenty, with the exact ratio to be set within this range by the Board in its sole discretion.
• The approval of an amendment to our Certificate of Incorporation to effect an increase in the number of authorized shares of common stock.

About Ensysce Biosciences

Ensysce Biosciences is a clinical-stage biotech company using its proprietary technology platforms to develop safer prescription drugs. Leveraging its Trypsin Activated Abuse Protection (TAAP^TM) and Multi-Pill Abuse Resistance (MPAR™) platforms, the Company is in the process of developing a unique, tamper-proof treatment option for pain that minimizes the risk of both drug abuse and overdoses. Ensysce's products are anticipated to provide safer options to treat patients suffering from severe pain and assist in preventing deaths caused by medication abuse, reducing the human and economic costs. The platforms are covered by an extensive worldwide intellectual property portfolio for a wide array of prescription drug compositions. For more information, please visit www.ensysce.com.

Forward-Looking Statements

Statements contained in this press release that are not purely historical may be deemed to be forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws. Without limiting the foregoing, the use of words such as "may," "intends," "can," "might," "will," "expect," "plan," "possible" and other similar expressions are intended to identify forward-looking statements. The product candidates discussed are in clinic and not approved and there can be no assurance that the clinical programs will be successful in demonstrating safety and/or efficacy, that Ensysce will not encounter problems or delays in clinical development, or that any product candidate will ever receive regulatory approval or be successfully commercialized. All forward-looking statements are based on estimates and assumptions by Ensysce's management that, although Ensysce believes to be reasonable, are inherently uncertain. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that Ensysce expected. In addition, Ensysce's business is subject to additional risks and uncertainties, including among others, the initiation and conduct of preclinical studies and clinical trials; the timing and availability of data from preclinical studies and clinical trials; expectations for regulatory submissions and approvals; potential safety concerns related to, or efficacy of, Ensysce's product candidates; the availability or commercial potential of product candidates; the ability of Ensysce to fund its continued operations, including its planned clinical trials; the dilutive effect of stock issuances from our fundraising; and Ensysce's and its partners' ability to perform under their license, collaboration and manufacturing arrangements. These statements are also subject to a number of material risks and uncertainties that are described in Ensysce's most recent quarterly report on Form 10-Q and current reports on Form 8-K, which are available, free of charge, at the SEC's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which it was made. Ensysce undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required under applicable law.

Ensysce Biosciences Company Contact:

Lynn Kirkpatrick, Ph.D.
Chief Executive Officer
(858) 263-4196

Ensysce Biosciences Investor Relations Contact:

Shannon Devine
MZ North America
Main: 203-741-8811
ENSC@mzgroup.us

SOURCE: Ensysce Biosciences Inc.

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https://www.accesswire.com/715263/Ensysce-Biosciences-Announces-Results-of-Special-Meeting-of-Stockholders

FAQ

What were the results of the Ensysce Biosciences stockholder meeting on September 8, 2022?

Stockholders approved share issuance, a reverse stock split, and an increase in authorized shares.

What is the purpose of the reverse stock split approved by Ensysce Biosciences?

It aims to increase the stock price and improve liquidity.

How will the increased authorized shares benefit Ensysce Biosciences?

It allows the company to raise additional capital for clinical development.

What regulations did Ensysce Biosciences comply with by issuing new shares?

They complied with Nasdaq Listing Rule 5635(d) regarding securities issuance.

What could be the effect of the reverse stock split on shareholders of Ensysce Biosciences?

It may dilute existing shareholder value, depending on the final ratio set.