NAPLES, Fla., May 18, 2021 /PRNewswire/ -- Enveric Biosciences,
Inc. (NASDAQ: ENVB) ("Enveric" or the "Company"), a patient-first
biotechnology company developing novel cannabinoid (CBD) medicines
to improve quality of life for cancer patients, today reported
its financial results for the three months ended March 31, 2021.
David Johnson, Chairman and Chief
Executive Officer, said, "Thus far in 2021, we continued to focus
on making progress on our pipeline of support care therapies,
bolster our management team and Scientific Advisory Board with
talented industry experts and maintain a healthy balance sheet,
which as of March 31, 2021 had
approximately $23 million in cash. As
we approach the second half of this year, we expect to receive
approval and initiate two critical Phase I/II trials in
Glioblastoma Multiforme and Radiation Dermatitis. In parallel, we
opportunistically continue to evaluate strategic investments
similar to our Diverse Biotech license for five molecules,
exclusive supply agreement with PureForm and other undervalued
synergistic investments."
Corporate Updates:
- Appointed Arash Asher M.D.,
Director of Cancer Rehabilitation and Survivorship to Cedars-Sinai
Cancer Center, to Enveric's 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 radiodermatitis and
glioblastoma clinical development plans in detail.
- Appointed Carter Ward as Chief
Financial Officer, effective May 15,
2021. Mr. Ward brings extensive public company leadership
experience in life sciences, SEC reporting and the capital markets.
Mr. Ward is replacing John Van
Buiten, who is expected to remain in a consulting role with
the company, supporting Mr. Ward both during the transition and
moving forward.
- Enhanced Board of Directors with the appointment of Dr.
Douglas D. Lind. Dr. Lind's
extensive and diverse background, working in both healthcare and
finance, will add tremendous value in helping Enveric bring better
treatment options to cancer patients in need.
- On March 10, 2021, the Company
also received $3,267,245 from the
exercise of warrants to purchase 851,099 shares of common
stock.
Financial Results for the Three Months Ended March 31, 2021:
Net cash used in operating activities was $3,162,278 during the three months ended
March 31, 2021, which consisted
primarily of a net loss of $3,250,711, offset by amortization of intangibles
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 expense
related to conversion of warrants of $298,714, increases in prepaid expenses and other
current assets for $66,208, offset by
increases in accounts payable and accrued liabilities of
$59,278.
Enveric's operating expenses increased to $6,764,997 for the quarter ending 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 fees of $5,770,343 and an increase in research and
development costs of $157,952. The
increase in general and administrative fees was primarily driven by
stock-based compensation of $3,591,565, stock option modification expense of
$298,714, and an increase in public
company compliance costs of $582,667.
Net cash provided by financing activities was $24,881,733 during the three months ended
March 31, 2021, which included
$21,614,488 in proceeds from the sale
of common stock, net of offering costs, and $3,267,245 in proceeds from warrant exercises.
Cash as of March 31, 2021 totaled
$22,657,150 and the Company currently
has no debt.
As of May 13, 2021, the Company
had 21,390,290 shares of common stock outstanding.
About Enveric Biosciences
Enveric Biosciences is a
patient-first biotechnology company developing rigorously tested,
novel cannabinoid medicines to improve quality of life for cancer
patients. Initial indications include radiodermatitis, a common and
often severe side effect of radiation therapy, and
chemotherapy-induced neuropathy. For more information, please visit
https://www.enveric.com/.
Forward-Looking Statements
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. Generally, forward-looking statements and information
may be identified by the use of forward-looking terminology such as
"plans", " expects" or "does not expect", "proposed", "is
expected", "budgets", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases, or by the use of words or
phrases which state that certain actions, events or results may,
could, would, or might occur or be achieved. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such forward-looking
statements are based on the beliefs of management as well as
assumptions made by and information currently available to
management. Actual results could differ materially from those
contemplated by 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 its business and raise
capital in the future when needed; delays in planned clinical
trials; the ability to establish that potential products are
efficacious or safe in preclinical or clinical trials; the ability
to establish or maintain collaborations on the development of
therapeutic candidates; the ability to obtain appropriate or
necessary governmental approvals to market potential products; the
ability to obtain future funding for developmental products and
working capital and to obtain such funding on commercially
reasonable terms; Enveric's ability to manufacture product
candidates on a commercial scale or in collaborations with third
parties; changes in the size and nature of competitors; the ability
to retain key executives and scientists; and the ability to secure
and enforce legal rights related to Enveric's products, including
patent protection. A discussion of these and other factors,
including risks and uncertainties with respect to Enveric, is set
forth in Enveric's filings 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 revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Investor Contacts
Valter
Pinto / Allison Soss
KCSA Strategic Communications
212.896.1254 / 212.896.1267
valter@kcsa.com / asoss@kcsa.com
Media Contacts
Caitlin
Kasunich / Raquel Cona
KCSA Strategic Communications
212.896.1241 / 516.779.2630
ckasunich@kcsa.com / rcona@kcsa.com
ENVERIC
BIOSCIENCES, INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
As of March
31,
|
|
|
As of December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
22,657,150
|
|
|
$
|
1,578,460
|
|
Prepaid expenses and
other current assets
|
|
|
767,298
|
|
|
|
700,710
|
|
Total current
assets
|
|
|
23,424,448
|
|
|
|
2,279,170
|
|
|
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
|
2,362,177
|
|
|
|
1,817,721
|
|
Total
assets
|
|
$
|
25,786,625
|
|
|
$
|
4,096,891
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity (Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
626,947
|
|
|
$
|
681,250
|
|
Total
liabilities
|
|
|
626,947
|
|
|
|
681,250
|
|
|
|
|
|
|
|
|
|
|
Warrant
liabilities
|
|
|
6,168,000
|
|
|
|
-
|
|
Total
liabilities
|
|
|
6,794,947
|
|
|
|
681,250
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred Stock,
$0.01 par value, 20,000,000 shares authorized, 0
and 3,275,407 shares issued and outstanding as of March 31,
2021
and December 31, 2020, respectively
|
|
|
-
|
|
|
|
32,754
|
|
Common stock, $0.01
par value, 100,000,000 shares authorized,
19,449,975 and 10,095,109 shares issued and outstanding as of
March 31, 2021 and December 31, 2020, respectively
|
|
|
194,499
|
|
|
|
100,951
|
|
Additional paid-in
capital
|
|
|
33,952,988
|
|
|
|
15,222,770
|
|
Accumulated
deficit
|
|
|
(15,010,268)
|
|
|
|
(11,759,557)
|
|
Accumulated other
comprehensive loss
|
|
|
(145,541)
|
|
|
|
(181,277)
|
|
Total
shareholders' equity
|
|
|
18,991,678
|
|
|
|
3,415,641
|
|
Total liabilities
and shareholders' equity
|
|
$
|
25,786,625
|
|
|
$
|
4,096,891
|
|
ENVERIC
BIOSCIENCES, INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
$
|
6,607,045
|
|
|
$
|
836,702
|
|
Research and
development
|
|
|
157,952
|
|
|
|
-
|
|
Total operating
expenses
|
|
|
6,764,997
|
|
|
|
836,702
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(6,764,997)
|
|
|
|
(836,702)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Inducement
expense
|
|
|
(298,714)
|
|
|
|
-
|
|
Change in fair value
of warrant liabilities
|
|
|
3,813,000
|
|
|
|
-
|
|
Interest
expense
|
|
|
-
|
|
|
|
(261,759)
|
|
Total other income
(expense)
|
|
|
3,514,286
|
|
|
|
(261,759)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
(3,250,711)
|
|
|
|
(1,098,461)
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
35,736
|
|
|
|
(12,698)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
$
|
(3,214,975)
|
|
|
$
|
(1,111,159)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
- basic and diluted
|
|
$
|
(0.20)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, basic and diluted
|
|
|
16,220,661
|
|
|
|
5,653,820
|
|
View original
content:http://www.prnewswire.com/news-releases/enveric-biosciences-reports-first-quarter-2021-financial-results-301293139.html
SOURCE Enveric Biosciences