SenesTech, Inc. Announces Closing of $5 Million Public Offering

Rhea-AI Summary

SenesTech (NASDAQ: SNES) closed a public offering of 1,428,572 shares at $3.50 each, generating approximately $5 million in gross proceeds. The offering included Series A and Series B warrants, both with an exercise price of $3.165, expiring five years and thirteen months respectively. Proceeds will be utilized for general corporate purposes. Additionally, existing warrants were amended to reduce their exercise price to $3.165 per share. The offering was facilitated by H.C. Wainwright & Co.

Positive

• Generated approximately $5 million in gross proceeds from the offering.
• Warrants amended to a lower exercise price of $3.165, potentially increasing future funding options.

Negative

• Dilution risk due to the issuance of new shares and warrants.
• Current stock performance may be negatively impacted by the offering.

PHOENIX, Nov. 18, 2022 /PRNewswire/ -- SenesTech, Inc. (NASDAQ: SNES, "SenesTech" or the "Company") (www.senestech.com) the rodent fertility control experts and inventors of the only EPA registered contraceptive for male and female rats, ContraPest®, today announced the closing of its previously announced public offering of 1,428,572 shares of its common stock (or pre-funded warrants in lieu thereof), Series A warrants to purchase up to 1,428,572 shares of its common stock ("Series A Warrants"), and Series B warrants to purchase up to 1,428,572 shares of its common stock ("Series B Warrants", together with Series A Warrants, collectively the "Series Warrants"), at an offering price to the public of $3.50 per share (or pre-funded warrant in lieu thereof) and associated Series Warrants. The Series A Warrants have an exercise price of $3.165 per share, are exercisable immediately upon issuance, and will expire five years following the date of issuance. The Series B Warrants have an exercise price of $3.165 per share, are exercisable immediately upon issuance, and will expire thirteen months following the date of issuance.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering. 

The gross proceeds to the Company from the offering were approximately $5 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes.

The Company also agreed to have certain existing warrants to purchase up to an aggregate of (i) 27,430 shares of common stock at an exercise price of $44.32 and an expiration date of July 29, 2026 and (ii) 85,034 shares of common stock at an exercise price of $34.50 and an expiration date of April 27, 2026 be amended effective upon the closing of the offering. The amended warrants have a reduced exercise price of $3.165 per share and will expire five years following the closing of the offering.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-267991) originally filed with the Securities and Exchange Commission ("SEC") on October 24, 2022 and became effective on November 16, 2022. The public offering was made only by means of a prospectus, which is part of the effective registration statement. Electronic copies of the final prospectus may be obtained for free on the SEC's website located at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

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

About SenesTech

We are "The Pest Control Difference" for the 21st century. We are rodent fertility control specialists fueled by our passion to create a healthy environment by virtually eliminating rodent pest populations. We keep an inescapable truth in mind. Two rats and their descendants can be responsible for the birth of up to 15,000 rat pups after a year. We invented ContraPest, the only U.S. EPA registered contraceptive for male and female rats. ContraPest fits seamlessly into all integrated pest management programs, greatly improving the overall goal of effective rat management. We strive for clean cities, efficient businesses and happy households – with a product that was designed to be effective and sustainable without killing rats. At SenesTech, we don't just eliminate rats. We make a better world.

For more information visit https://senestech.com/ and https://contrapeststore.com.

Safe Harbor Statement

This press release may contain certain statements relating to future results which are forward-looking statements. These forward-looking statements are subject to risks and uncertainties including, among other things, the intended use of proceeds from the public offering. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements, depending on factors including risks and uncertainties related to market and other conditions; whether the contemplated offering will be successful and whether the Company will be able to regain and maintain compliance with Nasdaq's continued listing criteria; the size of the potential markets for the Company's product candidates and its ability to service those markets; and the Company's current and future capital requirements and its ability to raise additional funds to satisfy its capital needs. Additional information concerning the Company and its business, including a discussion of factors that could materially affect the Company's financial results are contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 under the heading "Risk Factors," as well as the Company's subsequent filings with the SEC. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware, except as required by law.

CONTACT:

Investors: Robert Blum, Joe Dorame, Joe Diaz, Lytham Partners, LLC,
602-889-9700, senestech@lythampartners.com

Company: Tom Chesterman, Chief Financial Officer, SenesTech, Inc.,
928-779-4143

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SOURCE SenesTech, Inc.

FAQ

What was the purpose of SenesTech's public offering on November 18, 2022?

SenesTech's public offering aimed to generate funds for general corporate purposes, raising approximately $5 million.

How many shares did SenesTech offer in its public offering?

SenesTech offered 1,428,572 shares of its common stock in the public offering.

What are the exercise prices and expiration dates for the Series A and B warrants?

Both Series A and B warrants have an exercise price of $3.165 and expire five years and thirteen months after issuance, respectively.

Who acted as the placement agent for SenesTech's public offering?

H.C. Wainwright & Co. served as the exclusive placement agent for SenesTech's public offering.

What are the potential impacts of SenesTech's public offering on shareholders?

The public offering may lead to shareholder dilution and could negatively affect the current stock performance.