Ensysce Biosciences (ENSC) Stock Is Down 30% Today: What's Going On?
Portfolio Pulse from Henry Khederian
Ensysce Biosciences (ENSC) shares dropped 30% after announcing a $5 million direct offering and private placement. The company issued shares and warrants at a reduced price to fund its programs and working capital. Despite the drop, ENSC has outperformed its historical averages.
August 29, 2024 | 3:10 pm
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NEGATIVE IMPACT
Ensysce Biosciences shares fell 30% due to a $5 million direct offering and private placement, issuing shares and warrants at a reduced price. The funds will support program development and working capital.
The 30% drop in ENSC's stock price is directly linked to the announcement of a $5 million direct offering and private placement, which involved issuing shares and warrants at a reduced price. This dilution typically leads to a decrease in stock price. The funds are intended for program development and working capital, which could be positive in the long term, but the immediate market reaction is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100