Skye Bioscience, Inc. announced that it has entered into a securities purchase agreement with certain investors to issue an aggregate of 581,383,799 shares of common stock at a price of $0.02064041 per share, and accompanying warrants to purchase up to 581,383,799 common shares for an aggregate gross proceeds of $12 million on August 15, 2023. The company issued to certain former stockholders of Bird Rock, an aggregate of 557,159,474 shares of common stock as a result of the participation of such former stockholders in the transaction. The PIPE warrants are exercisable at an exercise price of $0.02064041 per share, subject to adjustment as set forth therein and have a term of ten years from the date of issuance.

The PIPE warrants may be exercised on a cashless basis if there is no effective registration statement registering the shares of common stock underlying the PIPE warrants. The transaction is expected to close on August 18, 2023.