NAPLES, Fla., May 18, 2021 / PRNewswire / – Enveric Biosciences, Inc. (NASDAQ: ENVB) (“Enveric” or the “Company”), a patient-first biotechnology company developing new cannabinoid (CBD) drugs to improve quality of life for cancer patients, today reported financial results for the three months ending 31 March 2021.
David Johnson, Chairman and Chief Executive Officer, said: “So far in 2021, we have continued to focus on advancing our supportive care therapies pipeline, strengthening our management team and scientific advisory board with talented industry and health experts. maintain a healthy balance sheet, which had approximately $ 23 million in cash as of March 31, 2021. As we approach the second half of this year, we expect to receive approval and initiate two pivotal Phase I / II studies in Glioblastoma Multiforme and Radiation Dermatitis. At the same time, continue to opportunistically evaluate strategic investments similar to our Five Molecule Diverse Biotech license, exclusive supply agreement with PureForm and other undervalued synergistic investments. ”
Appointed Arash Asher MD, director of cancer rehabilitation and survival at Cedars-Sinai Cancer Center, to the Enveric Scientific Advisory Board. Enveric Biosciences held its first Scientific Advisory Board meeting on April 25, 2021, during which the Board discussed and reviewed Enveric’s clinical development plans for radiodermatitis and glioblastoma in detail. Appointed Carter Ward as Chief Financial Officer, effective May 15, 2021. Mr. Ward brings extensive leadership experience from publicly traded companies in the life sciences, SEC reporting and capital markets. Mr. Ward will replace John Van Buiten, who is expected to continue in an advisory role to the company and support Mr. Ward throughout the transition and progress. Improved Board of Directors with the appointment of Dr. Douglas D. Lind. The extensive and diverse background of Dr. Lind, who works in both healthcare and finance, will be of tremendous value in helping Enveric provide better treatment options for cancer patients in need. On March 10, 2021, the company also received $ 3,267,245 from the exercise of warrants to purchase 851,099 common stock.
Financial results for the three months ended March 31, 2021:
Net cash used in operating activities was $ 3,162,278 for the three months ended March 31, 2021, which mainly consisted of a net loss of $ 3,250,711, offset by intangible amortization of $ 136,640, other income from the change in fair value of warrant liability of $ 3,813,000, stock-based compensation expense of $ 3,591,565, inducement costs related to the conversion of warrants of $ 298,714, increases in prepaid expenses and other current assets for $ 66,208 offset by increases in accounts payable and accruals from $ 59,278.
Enveric’s operating expenses increased to $ 6,764,997 for the quarter ended March 31, 2021 from $ 836,702 for the three months ended March 31, 2020. This change was primarily driven by an increase in general and administrative expenses of $ 5,770. 343 and an increase in research and development costs of $ 157,952. The increase in general and administrative expenses was mainly driven by share-based compensation of $ 3,591,565, stock option modification costs of $ 298,714 and an increase in the listed company’s compliance costs of $ 582,667.
Net cash from financing activities was $ 24,881,733 for the three months ended March 31, 2021, including $ 21,614,488 in proceeds from the sale of common stock, net of offering costs, and $ 3,267,245 in proceeds from the exercise of warrants . Cash and cash equivalents totaled $ 22,657,150 as of March 31, 2021, and the company is currently out of debt.
As of May 13, 2021, the company had 21,390,290 common shares outstanding.
About Enveric Biosciences
Enveric Biosciences is a patient-first biotechnology company developing rigorously tested new cannabinoid drugs to improve the quality of life of cancer patients. Early indications include radiodermatitis, a common and often serious side effect of radiation therapy, and chemotherapy-induced neuropathy. For more information, please visit https://www.enveric.com/.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements, other than statements of historical fact, may be forward-looking statements or information. In general, forward-looking statements and information may be identified through the use of forward-looking terminology such as “plans”, “expected” or “does not expect”, “proposed”, “expected”, “budgets”, “planned”, “estimate” , “predicts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations on such words and phrases, or through the use of words or phrases that indicate certain actions, events, or results could, could, or could take place or be achieved. Forward-looking statements consist of statements that are not purely historical, including statements about beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements are based on management’s beliefs and on assumptions and information currently available to management. Actual results may differ materially from those contemplated in the forward-looking statements as a result of certain factors, including, but not limited to, the impact of the novel coronavirus (COVID-19) on Enveric’s ongoing and planned clinical trials; the geographic, social and economic impact of COVID-19 on Enveric’s ability to conduct business and raise capital as needed in the future; delays in planned clinical trials; the ability to determine that potential products are effective or safe in preclinical or clinical trials; the ability to create or maintain collaborations for the development of therapeutic candidates; the ability to obtain appropriate or necessary governmental approvals to market potential products; the ability to obtain future financing for development products and working capital and to obtain such financing on commercially reasonable terms; Enveric’s ability to manufacture product candidates on a commercial scale or in collaboration with third parties; changes in the size and nature of competitors; the ability to retain key officers and scientists; and the ability to secure and enforce legal rights in Enveric’s products, including patent protection. A discussion of these and other factors, including risks and uncertainties relating to Enveric, is set forth in the documents Enveric filed with the SEC, including its Annual Report on Form 10-K filed with the SEC on April 1, 2021, as may be supplemented or amended by Enveric’s quarterly reports on Form 10-Q. Enveric disclaims any intention or obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Valter Pinto / Allison Soss
KCSA Strategic communication
212.896.1254 / 212.896.1267
Caitlin Kasunich / Raquel Cona
KCSA Strategic communication
212.896.1241 / 516.779.2630
ENVERIC BIOSCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET
From March 31
As of December 31
Prepaid Expenses and Other Current Assets
Total current assets
Intangible fixed assets, net
Liabilities and equity (deficit)
Debts and accrued liabilities
Liabilities related to warrants
Liabilities and contingent liabilities (Note 6)
Preference stock, par value $ 0.01, 20,000,000 shares authorized, 0
and 3,275,407 shares issued and outstanding on March 31, 2021
December 31, 2020 respectively
Common stock, $ 0.01 par value, 100,000,000 shares authorized,
19,449,975 and 10,095,109 shares issued and outstanding on
March 31, 2021 and December 31, 2020 respectively
Extra paid-in capital
Accumulated other comprehensive loss
Total liabilities and equity
ENVERIC BIOSCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BUSINESS STATEMENTS AND GENERAL LOSS
For the three months ended March 31
General and administrative expenses
Research and development
Total operating costs
Loss due to operations
Other income (costs)
Expenses for incentives
Change in fair value of warrant liabilities
Total other income (costs)
Other comprehensive loss
Foreign currency conversion
Net loss per share – basic and diluted
Weighted average number of ordinary and diluted shares outstanding
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SOURCE Enveric Biosciences