SenesTech announces warrant exercise for $6.3M in gross proceeds

SenesTech (SNES) announced the entry into definitive agreements for the immediate exercise of certain outstanding warrants to purchase an aggregate of 1,458,872 shares of the company’s common stock originally issued by the company on July 1, at the existing exercise price of $4.15 per share. The closing of the warrant exercise transaction is expected to occur on or about August 5, subject to satisfaction of customary closing conditions. H.C. Wainwright is acting as the exclusive placement agent for the transaction. As consideration for the exercise of such existing warrants for cash, the company will issue new unregistered short-term warrants to purchase up to an aggregate of 2,188,308 shares of common stock at an exercise price of $5.25 per share at a purchase price of $0.125 per warrant in a private placement priced at-the-market under Nasdaq rules. The new short-term warrants will be exercisable immediately and will expire fifteen months following the effective date of the resale registration statement registering the shares of common stock issuable upon exercise of the short-term warrants. The aggregate gross proceeds from the exercise of the existing warrants along with the aggregate purchase price of the new short-term warrants are expected to be approximately $6.3M, before deducting placement agent fees and other offering expenses payable by the company. The potential gross proceeds from the new short-term warrants, if fully exercised on a cash basis, will be approximately $11.5M.