Enveric Biosciences Announces Closing of $10 Million Public Offering

Rhea-AI Summary

Enveric Biosciences (NASDAQ: ENVB) has closed its underwritten public offering, raising approximately $10 million through the sale of 20,000,000 shares of common stock and warrants. After costs, the company received net proceeds of about $9.2 million. The funds will be allocated for working capital and general corporate purposes. The offering included a 45-day option for the underwriter to purchase an additional 3,000,000 shares and/or warrants. This public offering was conducted under an effective shelf registration statement with the SEC.

Positive

• Raised approximately $10 million in gross proceeds.
• Received net proceeds of about $9.2 million for working capital.
• Potential for growth through additional shares/warrants option.

Negative

• Dilution of existing shares due to new stock issuance.

NAPLES, Fla., Feb. 15, 2022 /PRNewswire/ - Enveric Biosciences (NASDAQ: ENVB) ("Enveric" or the "Company"), a neuroscience company developing next-generation, psychedelic-inspired mental health and oncology treatments, today announced the closing of its previously announced underwritten public offering of 20,000,000 shares of its common stock and warrants to purchase up to 20,000,000 shares of its common stock for gross proceeds of approximately $10 million, before deducting underwriting discounts and commissions and other offering expenses. A.G.P./Alliance Global Partners acted as sole book-running manager for the offering. In addition, Enveric granted the underwriter a 45-day option to purchase up to an additional 3,000,000 shares of common stock and/or warrants to purchase up to an additional 3,000,000 shares of common stock at the public offering price, which the underwriter has partially exercised for warrants to purchase up to 3,000,000 shares of common stock.

All the securities being sold in the offering were offered by Enveric. At closing, Enveric received net proceeds from the offering of approximately $9.2 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from this offering for working capital and to fund other general corporate purposes.

This offering was made pursuant to an effective shelf registration statement on Form S-3 (No. 333-257690) previously filed with the U.S. Securities and Exchange Commission (the "SEC") that was declared effective by the SEC on July 9, 2021, and to a prospectus supplement and accompanying prospectus. The final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement may be also obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022 or via telephone at 212-624-2060 or email: prospectus@allianceg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Enveric Biosciences

Enveric Biosciences (NASDAQ: ENVB) is an innovative biotechnology company developing next-generation mental health and oncology treatments and clinical discovery platform, leveraging psychedelic-derived molecules for the mind and synthetic cannabinoids for the body. Enveric's robust pipeline supports drug discovery efforts and clinical development programs to enable the potential commercialization of effective treatments for millions of patients in need around the world. For more information, please visit www.enveric.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statements that express the current beliefs and expectations of management, including but not limited to statements related to the intended use of proceeds therefrom and expected clinical development of Enveric's drug product candidates. Any statements contained herein that do not describe historical facts are forward-looking statements that are subject to risks and uncertainties, market and other conditions, that could cause actual results, performance and achievements to differ materially from those discussed in such forward-looking statements. These and other risks are discussed in Enveric's filings with the SEC, including, without limitation, its Annual Report on Form 10-K, filed on April 1, 2021, and its periodic reports on Form 10-Q and Current Reports on Form 8-K. Enveric cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date they were made. Enveric undertakes no obligation to update or revise forward-looking statements, except as otherwise required by law, whether as a result of new information, future events or otherwise.

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SOURCE Enveric Biosciences

FAQ

What was the purpose of Enveric Biosciences' public offering on February 15, 2022?

The proceeds from the public offering will be used for working capital and general corporate purposes.

How much did Enveric Biosciences raise in their public offering?

Enveric raised approximately $10 million in gross proceeds from the public offering.

What are the net proceeds received by Enveric Biosciences after the public offering expenses?

Enveric received approximately $9.2 million in net proceeds after deducting underwriting discounts and expenses.

What options were granted to the underwriter in the public offering?

The underwriter was granted a 45-day option to purchase up to an additional 3,000,000 shares and/or warrants.

What are the potential implications of the public offering for ENVB shareholders?

The offering may lead to share dilution due to the increase in common stock issued.