Ensysce completes Cy Biopharma acquisition, lines up up to $77 million financing
The deal brings Ensysce a Phase 2-stage CRPS therapy with FDA Orphan Drug Designation, funded through a two-tranche private placement.
Ensysce Biosciences announced on August 6, 2026 that it had completed its acquisition of Cy Biopharma, a privately held clinical-stage biotech developing novel neuroplastogenic therapies for Complex Regional Pain Syndrome, which has U.S. FDA Orphan Drug Designation.1
The transaction closed August 5, 2026 as a stock-for-stock merger. Cy Biopharma's equityholders will receive an aggregate of 282,122 shares of Series C Preferred Stock, representing 282,122,000 shares on an as-converted-to-common basis.1
Alongside the merger, Ensysce entered a private placement to raise approximately $43 million in gross proceeds over two tranches, issuing 120,260 shares of Series C Preferred Stock at $321.79 per share for the initial tranche of 66,811 shares, and $402.24 per share for the second tranche of up to 53,449 shares tied to a milestone closing.1 The first tranche is expected to close on August 7, 2026, with the milestone closing subject to achievement of a clinical trial milestone.1 The release separately describes the financing as up to $77 million, combining $21.5 million in initial private placement proceeds, $17.1 million of Cy Biopharma's pre-acquisition convertible note cash, and up to $38.6 million upon the clinical milestone.1
The private placement was led by Ally Bridge Group, with participation from Perceptive Advisors, Dellora Investments, Ikarian Capital and Adage Capital Partners, L.P.1
Proceeds are intended to carry CY-200 through topline data from a randomized Phase 2 trial assessing efficacy, safety and tolerability in CRPS Type 1 patients, and to prepare for registrational development.1
As part of the leadership changes, Lynn Kirkpatrick resigned as President effective at closing, while James Morrison, Cy's founder, was appointed President and a director effective at closing, with plans to become CEO upon stockholder approval of related proposals.1 Ensysce expects to file a proxy statement with the SEC covering the Series C Preferred Stock conversion.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.