Ensysce Biosciences Inc. (NASDAQ: ENSC) announced the closing of a $2 million convertible preferred stock financing, representing the second tranche under a November 2025 agreement that provides up to $20 million in funding over 24 months.

The San Diego-based clinical-stage company develops analgesics designed to resist abuse and overdose. The financing carries a fixed conversion price of $0.55 per share, with an alternative conversion price based on average common stock prices prior to conversion.

The financing structure includes 100% warrant coverage with an 18-month term and additional 100% warrant coverage with a five-year term, both exercisable at the fixed conversion price and subject to adjustment.

According to the company, the capital will support its analgesic programs and general corporate operations. Ensysce also receives federal grant support for its MPAR program.

"This financing reflects continued investor confidence in Ensysce's differentiated analgesic programs, which we believe have the potential to reinvent pain management," stated Dr. Lynn Kirkpatrick, the company's chief executive officer.

Ensysce focuses on developing opioids for severe pain treatment using its Trypsin-Activated Abuse Protection and Multi-Pill Abuse Resistance platforms. The company's product candidates remain in clinical development and have not received regulatory approval.