AUSTIN, Texas - Anebulo Pharmaceuticals, Inc. (NASDAQ: ANEB), a clinical-stage biopharmaceutical company with a current market capitalization of $25.67 million, focused on treating acute cannabinoid intoxication, has announced the successful closure of a $15 million capital raise. This funding comes as the company prepares to embark on a Phase I study for its lead product candidate, selonabant, in the first half of 2025.
The private placement, involving the sale of 15.2 million shares at $0.99 each, saw participation from 22NW, Nantahala Capital, and an existing investor. The transaction is set to finalize by December 24, adhering to Nasdaq's at-the-market pricing rules. According to InvestingPro data, the stock has experienced significant pressure, down 63% over the past six months, though analysts maintain an $8.00 price target.
Additionally, Anebulo will revise its Loan and Security Agreement, reducing the borrowing limit to approximately $3 million and removing any securitization. This amendment follows an agreement that allowed the company to borrow up to $10 million, although no funds have been borrowed to date. InvestingPro analysis shows the company maintains a healthy current ratio of 3.45, indicating strong short-term liquidity position.
Anebulo's CEO, Richie Cunningham, expressed gratitude for the investors' continued support, highlighting the absence of stock discounts or warrant coverage in the deal. The FDA has recognized the lack of treatments for children suffering from cannabis toxicity, proposing a collaborative effort to advance the development of selonabant for this pediatric condition.
Selonabant, a small molecule antagonist of the cannabinoid receptor type-1 (CB1), is designed to counteract the adverse effects of acute cannabinoid intoxication. The company has completed a Phase 2 study where oral selonabant demonstrated efficacy in reversing the central nervous system effects of THC in adults. Anebulo plans to focus on the intravenous formulation of selonabant for pediatric patients, which may offer a quicker path to regulatory approval compared to the adult oral product.
The company's commitment to addressing cannabis toxicity in children is further underscored by a market assessment conducted by a top pharmaceutical consulting firm, confirming the viability of the pediatric condition as a commercial opportunity. With a beta of -1.1, InvestingPro data suggests the stock could provide portfolio diversification benefits as it typically moves opposite to broader market trends.
This announcement is based on a press release statement from Anebulo Pharmaceuticals, Inc.
In other recent news, Anebulo Pharmaceuticals announced its fourth-quarter 2024 financial results, including a net loss of $8.2 million, an improvement from the previous fiscal year's loss of $11.7 million. The company also highlighted its progress in product development, particularly an intravenous formulation of selonabant for treating acute cannabis poisoning. Anebulo has received a $1.9 million grant from the National Institute of Drug Abuse (NIDA) to support this project and anticipates completing Investigational New Drug activities by the end of 2024.
In addition, the company was awarded an initial $0.9 million grant from NIDA, with an additional $1 million contingent upon achieving certain milestones. The funding will aid in the development of emergency treatment for acute cannabis-induced toxicities, especially in children. The drug, intravenous selonabant, has completed a Phase 2 clinical trial and the company is currently conducting an observational study in emergency departments.
Furthermore, Anebulo Pharmaceuticals has introduced a new equity compensation policy for non-employee directors. Benchmark has maintained its Speculative Buy rating on Anebulo and reaffirmed an $8.00 price target on the company's shares. These recent developments reflect Anebulo's efforts to advance its medical research and improve its financial performance.
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