Anebulo Pharmaceuticals Announces Private Placement Agreement with 22NW Fund & Institutional Investors

Anebulo Pharmaceuticals, Inc. (NASDAQ: ANEB) recently disclosed in an 8-K filing with the Securities and Exchange Commission that it entered into a securities purchase agreement on December 22, 2024. The agreement, struck with 22NW Fund, LP and other institutional accredited investors, involved a private placement transaction priced at-the-market on The Nasdaq Stock Market LLC.

Under the terms of the Purchase Agreement, Anebulo Pharmaceuticals agreed to issue and sell 15,151,514 shares of its common stock at $0.99 per share, resulting in gross proceeds of approximately $15 million. The Company intends to utilize these funds for working capital purposes. The Private Placement concluded on December 23, 2024.

The agreement includes standard representations, warranties, and contractual obligations by Anebulo Pharmaceuticals, with provisions for registering the shares acquired by the investors for resale. As a consequence of this transaction, Aron English, a company director, now possesses majority voting power over the company’s common stock, potentially leading to a change of control scenario.

Moreover, the Company plans to modify its Loan and Security Agreement by reducing the maximum loan size to about $3 million, effectively lowering the securitization threshold and eliminating any securitization.

In parallel, a press release issued on December 23, 2024, revealed details related to the capital raise. The press release mentioned positive regulatory developments for the Company’s product, intravenous selonabant. Anebulo Pharmaceuticals had discussions with the FDA regarding the drug’s development and proposed clinical testing. The FDA acknowledged the necessity for a treatment for children exposed to cannabis toxicity and suggested an ongoing partnership to drive the pediatric program forward.

Additionally, plans are underway to initiate Phase I clinical testing of intravenous selonabant on healthy adults in the first half of 2025.

This dynamic series of events showcases Anebulo Pharmaceuticals’ commitment to advancing its therapeutic offerings, bolstered by successful fundraising and regulatory progress.

For further details and comprehensive disclosures, interested parties are encouraged to refer to the complete filing available on the Securities and Exchange Commission’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Anebulo Pharmaceuticals’s 8K filing here.

About Anebulo Pharmaceuticals

Anebulo Pharmaceuticals, Inc, a clinical-stage biotechnology company, engages in developing solutions for people suffering from acute cannabinoid intoxication (ACI) and substance addiction. The company's lead product candidate is ANEB-001, a small molecule cannabinoid receptor antagonist, which is in a Phase II clinical trial to address the unmet medical need for a specific antidote for ACI.