- SenesTech recently issued new unregistered warrants and closed on an exercise of certain existing warrants, raising approximately $2.3 million in aggregate gross proceeds
- The company plans to use the proceeds of the warrant exercise to continue with its rollout of the Evolve(TM) product line (Evolve Rat and Evolve Mouse), the industry’s only soft bait product line to control rodent populations by restricting fertility
- The company’s Evolve products, controlling rodents through rodent birth control versus poisons, represent safer alternatives to second-generation rodenticides, which threaten numerous species that ingest poisoned rodents, contaminated feces, contaminated soils, and sometimes the poisoned baits themselves
- The U.S. Environmental Protection Agency is expected to come up with tighter regulations on second-generation poisons, positioning SenesTech for continued growth as demand increases
SenesTech (NASDAQ: SNES), the leader in fertility control to manage animal pest populations, recently issued new unregistered warrants to purchase up to an aggregate of 1,011,004 shares of common stock at $4.35 per unit in a private placement. The company also closed on an exercise of certain existing warrants to purchase 505,502 shares of its common stock at a reduced exercise price of $4.60 per unit, raising approximately $2.3 million in aggregate gross proceeds. SenesTech intends to use the net proceeds from this transaction for working capital and general corporate purposes (https://ibn.fm/o12H7).
“In a simple sense, we believe that the proceeds allow us to continue with our rollout of the Evolve(TM) product line. We believe that this financing will enable us to execute these plans,” said Joel Fruendt, SenesTech President and CEO.
Evolve(TM) Product Line
SenesTech introduced Evolve(TM) soft bait for rats in October 2023 as a superior solution for effective rodent control. The product contains cottonseed oil, an active ingredient extracted from cotton plants. The compound, SenesTech says, interferes with the reproductive systems of both male and female rats, restricting their fertility using different approaches.
In male rats, Evolve reduces sperm count, motility, and viability. In female rats, it disrupts estrous cycles (the recurring patterns of ovarian activity during the rats’ reproductive phases), affects follicles (sacs inside the ovaries that house growing eggs), and reduces pregnancy rates. These effects, which are both dose and time-dependent, help control rat populations.
To expand its addressable market, SenesTech introduced in May the Evolve(R) Mouse, a mouse product that uses the company’s breakthrough fertility control solution. “We would expect the market for a mouse product would at least double the addressable market for the Evolve product line,” conveyed Fletcher Cline, President of DIY Pest Control, one of SenesTech’s distributors and online retailers (https://ibn.fm/gZ2N8).
The appeal of SenesTech’s Evolve Rat and Evolve Mouse products is driven by numerous factors. First, both products are designated as ‘minimum risk’ by the U.S. Environmental Protection Agency (“EPA”), under FIFRA 25(b), meaning they pose little or no risk to human health and the environment. Secondly, according to Fruendt, the Evolve product line is a viable alternative to historical lethal methods for rodent infestations, which are failing and are under increased scrutiny for their impact on food webs.
Negative Impact of Second-Generation Rodenticides
The second-generation poisons are anticoagulants, blocking the blood’s ability to block. They cause death by triggering internal bleeding, with the same fate befalling predators or scavengers that eat the poisoned rodent, especially if the quantity of poison ingested is large enough. The poisons may also indirectly cause death by predisposing predatory birds to collide with a vehicle or fly into a building.
The supporting evidence exists: A 2023 draft evaluation by EPA, for instance, found that rodenticides, including second-generation compounds, threaten numerous species of animals, from predatory birds such as hawks, eagles, and owls to animals like wolves, foxes, skunks, and coyotes. Additionally, rodent poisons have also been detected in cockroaches, beetles, geckos, shellfish, snails, slugs, and dead frogs, which may have eaten poisoned prey, contaminated soil, contaminated rodent feces, and, in some instances, the poisons (https://ibn.fm/pVIqK).
The already devastating consequences of using these rodenticides are compounded by their long half-lives. Some testing suggests that the second-generation poisons can remain in rat livers for almost a year post-ingestion before losing potency. This trait eliminates any time-dependent poisonous attribute, predisposing predators and scavengers to harm regardless of when they actually feed on the poisoned rodents.
These poisons have also been shown to pose a threat to children because of the potential for accidental poisoning of people. In light of this revelation, the EPA in 2008 imposed rules banning the sale of second-generation rodenticides in settings where nonprofessionals could purchase them. They must also be sold in large quantities. The rules, however, had loopholes that still ensure accessibility for many consumers. As concerns continue to mount, the EPA has proposed tighter restrictions and is undertaking an evaluation that will guide the future use of these poisonous compounds.
Better Alternatives
But, as the country awaits EPA’s decisions and potential restrictions, it is increasingly becoming clear that rodents can be controlled without poisons. Edible compounds that reduce fertility are an available and viable alternative approach alongside snap traps and ecologically based rodent management.
For its part, SenesTech holds that its Evolve product line is the industry’s only soft bait product line to control rodent populations by restricting fertility. In this regard, the company is ideally positioned as the rodent control market looks for safer alternatives to poisons. And in recognizing the impact of rodent control products on food chains and webs, SenesTech has engineered the Evolve product line to pose no risk to non-target animals.
According to SenesTech, the low active levels in Evolve are designed for the body mass of rats and mice, “so larger mammals would need to repeatedly ingest a substantial amount over several weeks to see any effects.” Additionally, the company has observed that birds appear more tolerant because they have different intestinal tracks and modes of digestion (https://ibn.fm/OSJWd).
To tap into future and emerging opportunities while catering to its addressable market, SenesTech’s R&D team is continuously working on improving its products. “Future iterations may incorporate different active ingredients or enhanced formulations based on ongoing research and feedback,” the company says.
For more information, visit the company’s website at www.SenesTech.com.
NOTE TO INVESTORS: The latest news and updates relating to SNES are available in the company’s newsroom at https://ibn.fm/SNES
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