Ensysce Biosciences Regains Full Compliance with Nasdaq

Rhea-AI Summary

Ensysce Biosciences (NASDAQ:ENSC) has regained full compliance with Nasdaq listing requirements. The company received notice on December 20, 2024, confirming its compliance with the minimum bid price requirement (Rule 5550(a)(2)). This follows their previous compliance with the stockholders' equity requirement (Rule 5550(b)(1)). Having met all requirements outlined in the Nasdaq Hearings Panel decision from November 5, 2024, ENSC will continue trading on The Nasdaq Capital Market.

Positive

• Maintained Nasdaq listing status, avoiding potential delisting
• Achieved compliance with both minimum bid price and stockholders' equity requirements

Negative

• None.

Insights

Market Compliance Analyst

The regained Nasdaq compliance marks a critical milestone for Ensysce Biosciences, particularly given its micro-cap status with a market cap of under $10 million. This development removes a significant regulatory overhang that could have resulted in delisting, which typically leads to reduced liquidity and institutional investment accessibility. Maintaining Nasdaq listing requirements, especially the minimum bid price and stockholders' equity thresholds, is important for small biotech companies to retain market credibility and access to capital markets. However, the company's extremely low market capitalization suggests ongoing fundamental challenges that extend beyond listing compliance. This regulatory achievement, while positive for maintaining market presence, doesn't address the underlying business challenges or capital needs typical of clinical-stage pharmaceutical companies developing pain management solutions. Future dilutive financing remains a significant consideration given the company's development stage and resources.

SAN DIEGO, CALIFORNIA / ACCESSWIRE / December 23, 2024 / Ensysce Biosciences, Inc. (NASDAQ:ENSC) ("Ensysce" or "Company"), a clinical-stage pharmaceutical company developing innovative solutions for severe pain relief while reducing the potential for opioid abuse and overdose, today announced that on December 20, 2024, it received notice from The Nasdaq Stock Market LLC ("Nasdaq") that the Company has demonstrated compliance with the minimum bid price requirement in Listing Rule 5550(a)(2). Ensysce had previously regained compliance with the stockholders' equity requirement in Listing Rule 5550(b)(1). As a result, the Company has met all requirements outlined in the Nasdaq Hearings Panel decision dated November 5, 2024, and Ensysce common stock will continue trading on The Nasdaq Capital Market.

About Ensysce Biosciences

Ensysce Biosciences is a clinical-stage pharmaceutical 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 developing unique, tamper-proof treatment options for pain that minimize the risk of both drug abuse and overdose. 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. 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," "believe" 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:
MZ Group North America
Shannon Devine
203-741-8811
ENSC@mzgroup.us

SOURCE: Ensysce Biosciences Inc.

View the original press release on accesswire.com

FAQ

When did Ensysce Biosciences (ENSC) regain Nasdaq compliance?

Ensysce Biosciences received notice of full Nasdaq compliance on December 20, 2024, after meeting both minimum bid price and stockholders' equity requirements.

What Nasdaq requirements did ENSC need to meet to maintain listing?

ENSC needed to meet two main requirements: the minimum bid price requirement (Rule 5550(a)(2)) and the stockholders' equity requirement (Rule 5550(b)(1)).

Will ENSC continue trading on Nasdaq after regaining compliance?

Yes, Ensysce Biosciences will continue trading on The Nasdaq Capital Market after meeting all requirements outlined in the Nasdaq Hearings Panel decision dated November 5, 2024.

What was the date of the Nasdaq Hearings Panel decision for ENSC?

The Nasdaq Hearings Panel decision for Ensysce Biosciences was dated November 5, 2024.