Exhibit
4.1


 


DESCRIPTION
OF CAPITAL STOCK


 


The
following description sets forth certain material terms and provisions of our securities that are registered under Section 12
of the Securities Exchange Act of 1934, as amended. This description also summarizes relevant provisions of Delaware law. The
following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable
provisions of Delaware law and our certificate of incorporation and our bylaws, copies of which are incorporated by reference
as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.1 is a part. In addition, you should be aware that the
summary below does not give full effect to the terms of the provisions of statutory or common law, and we encourage you to read
our certificate of incorporation, our bylaws and the applicable provisions of Delaware law for additional information. In this
description, references to “we,” “us,” “our,” “our company” and “Enveric”
refer to Enveric Biosciences, Inc. and its subsidiaries.


 


As
of March 30, 2021, our authorized capital stock consisted of 100,000,000 shares of common stock, $0.01 par value per share; and
20,000,000 shares of preferred stock, $0.01 par value per share. As of March 29, 2021, there were 19,450,507 shares of our common
stock and 0 shares of our Series B Convertible Preferred Stock (“Series B Preferred Stock”) issued and outstanding.


 


Common
Stock


 


Pursuant
to our certificate of incorporation, holders of our common stock are entitled to one vote for each share held on all matters submitted
to a vote of our stockholders. Holders of our common stock have no cumulative voting rights. All shares of our common stock validly
authorized and issued, fully paid and nonassessable.


 


Holders
of our common stock have no preemptive, redemption, conversion or subscription rights. No sinking fund provisions are applicable
to our common stock. Upon liquidation, dissolution or winding-up, holders of our common stock are entitled to share in all assets
remaining after payment of all liabilities and the liquidation preferences of any of our outstanding shares of preferred stock.
Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of our common stock are entitled
to receive dividends, if any, as may be declared from time to time by our board of directors out of our assets which are legally
available. Such dividends, if any, are payable in cash, in property or in shares of capital stock.


 


The
holders of a majority of the shares of our capital stock, represented at the special meeting or by proxy, are necessary to constitute
a quorum for the transaction of business at any meeting. If a quorum is present, an action by stockholders entitled to vote on
a matter is approved if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the
action, with the exception of the election of directors, which requires a plurality of the votes cast.


 


Preferred
Stock


 


Our
board of directors has the authority, without further action by the stockholders, to issue up to 20,000,000 shares of preferred
stock in one or more series and to fix the designations, powers, preferences, privileges, and relative participating, optional,
or special rights as well as the qualifications, limitations, or restrictions of the preferred stock, including dividend rights,
conversion rights, voting rights, terms of redemption, and liquidation preferences, any or all of which may be greater than the
rights of the common stock. Our board of directors, without stockholder approval, can issue convertible preferred stock with voting,
conversion, or other rights that could adversely affect the voting power and other rights of the holders of common stock. Preferred
stock could be issued quickly with terms calculated to delay or prevent a change of control or make removal of management more
difficult. Additionally, the issuance of preferred stock may have the effect of decreasing the market price of our common stock,
and may adversely affect the voting and other rights of the holders of common stock.


 


Series
B Preferred Stock


 


Each
share of our non-voting Series B Preferred Stock is convertible into one share of our common stock (subject to adjustment) at
any time at the option of the holders, provided that each holder would be prohibited from converting Series B Preferred Stock
into shares of our common stock if, as a result of such conversion, such holder, together with its affiliates, would own more
than 9.99% of the total number of shares of our common stock then issued and outstanding. This limitation may be waived with respect
to a holder upon such holder’s provision of not less than 61 days’ prior written notice to us.


 




    	 



     


    

 


In
the event of liquidation, dissolution, or winding up, each holder of Series B Preferred Stock may elect to receive either (i)
in preference to any payments made to the holders of our common stock and any other junior securities, a payment for each share
of Series B Preferred Stock then held equal $0.01, plus an additional amount equal to any dividends declared but unpaid on such
shares, and any other fees or liquidated damages then due and owing thereon or (ii) the amount of cash, securities or other property
to which such holder would be entitled to receive with respect to each share of Series B Preferred Stock if such share of Series
B Preferred Stock had been converted to common stock immediately prior to such liquidation, dissolution, or winding up (without
giving effect to any conversion limitations).


 


Shares
of Series B Preferred Stock are not entitled to receive any dividends, unless and until specifically declared by the board of
directors. However, holders of Series B Preferred Stock are entitled to receive dividends on shares of Series B Preferred Stock
equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends actually paid on shares of our common
stock when such dividends are specifically declared by our board of directors. We have no right to redeem or repurchase any shares
of Series B Preferred Stock. Shares of Series B Preferred Stock are not otherwise entitled to any preemptive rights, redemption
rights, mandatory sinking fund or analogous fund provisions.


 


The
foregoing summary of the terms of the Series B Preferred Stock is qualified in its entirety by reference to the provisions of
the Certificate of Designations of Series B Convertible Preferred Stock.


 


Anti-Takeover
Effects of Certain Provisions of our Certificate of Incorporation, Bylaws and the DGCL


 


Delaware
Law


 


We
are subject to Section 203 of the Delaware General Corporation Law (“DGCL”), which prohibits a publicly-held Delaware
corporation from engaging in a business combination with an interested stockholder, generally a person which together with its
affiliates owns, or within the last three years has owned, 15% of our voting stock, for a period of three (3) years after the
date of the transaction in which the person became an interested stockholder, unless the business combination is approved in a
prescribed manner. Subject to certain exceptions, Section 203 prevents a publicly held Delaware corporation from engaging in a
“business combination” with any “interested stockholder” for three years following the date that the person
became an interested stockholder, unless either the interested stockholder attained such status with the approval of our board
of directors, the business combination is approved by our board of directors and stockholders in a prescribed manner or the interested
stockholder acquired at least 85% of our outstanding voting stock in the transaction in which it became an interested stockholder.
A “business combination” includes, among other things, a merger or consolidation involving our company and the “interested
stockholder” and the sale of more than 10% of our company’s assets. In general, an “interested stockholder”
is any entity or person beneficially owning 15% or more of our outstanding voting stock and any entity or person affiliated with
or controlling or controlled by such entity or person.


 


Potential
Effects of Authorized but Unissued Stock


 


We
have shares of common stock and preferred stock available for future issuance without stockholder approval. We may utilize these
additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, to facilitate
corporate acquisitions or payment as a dividend on the capital stock.


 


The
existence of unissued and unreserved common stock and preferred stock may enable our board of directors to issue shares to persons
friendly to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party
attempt to obtain control of our company by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the
continuity of our company’s management. In addition, our board of directors has the discretion to determine designations,
rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges
and liquidation preferences of each series of preferred stock, all to the fullest extent permissible under the DGCL and subject
to any limitations set forth in our amended and restated certificate of incorporation, as amended. The purpose of authorizing
our board of directors to issue preferred stock and to determine the rights and preferences applicable to such preferred stock
is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing
desirable flexibility in connection with possible financings, acquisitions and other corporate purposes, could have the effect
of making it more difficult for a third-party to acquire, or could discourage a third party from acquiring, a majority of our
outstanding voting stock.


 






    	 



     


    

 


Limitations
of Director Liability and Indemnification of Directors, Officers and Employees


 


Section
145 of the DGCL permits indemnification of directors, officers, agents and controlling persons of a corporation under certain
conditions and subject to certain limitations. Section 145 empowers a corporation to indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding whether civil, criminal,
administrative or investigative, by reason of the fact that he or she is or was a director, officer or agent of the corporation
or another enterprise if serving at the request of our company. Depending on the character of the proceeding, a corporation may
indemnify against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred in connection with such action, suit or proceeding if the person indemnified acted in good faith and in a manner he or
she reasonably believed to be in or not opposed to, the best interests of the corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his or her conduct was unlawful. In the case of an action by or in the right
of the corporation, no indemnification may be made with respect to any claim, issue or matter as to which such person shall have
been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such
action or suit was brought shall determine that despite the adjudication of liability such person is fairly and reasonably entitled
to indemnity for such expenses which the court shall deem proper. Section 145 further provides that to the extent a present or
former director or officer of a corporation has been successful in the defense of any action, suit or proceeding referred to above
or in the defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including attorneys’
fees) actually and reasonably incurred by such person in connection therewith.


 


Listing


 


Our
common stock is currently listed on The Nasdaq Capital Market under the trading symbol “ENVB.”


 


Transfer
Agent and Registrar


 


The
Transfer Agent and Registrar for our common stock and warrants is Equiniti Trust Company.


 


Warrants


 


There
are issued and outstanding registered warrants (the “Warrants”) to purchase an aggregate of 11,220 shares of
our common stock, at an exercise price of $411.50 per whole share. The current exercise rate of the Warrants is 1/100 share per
Warrant. However, no fractional shares of common stock will be issued in connection with the exercise of the Warrants. The exercise
price and exercise rate of the Warrants are subject to certain customary adjustments in the event of stock dividends and distributions,
stock splits, stock combinations, reclassifications or similar events affecting our common stock.


 


The
Warrants are exercisable at any time until 5:00 p.m., New York City time, November 21, 2022. A holder will not have the right
to exercise any portion of the Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99%
of the number of shares of our common stock outstanding immediately after giving effect to the exercise, as such percentage ownership
is determined in accordance with the terms of the Warrants. However, any holder may increase or decrease such percentage to any
other percentage not in excess of 9.99% upon at least 61 days’ prior notice from the holder to us. Subject to applicable
laws, the Warrants may be offered for sale, sold, transferred or assigned without our consent.


 




    	 



     


    

 


In
the event of a fundamental transaction, such as a reorganization, recapitalization or reclassification of our common stock, the
sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with
or into another person, the acquisition of more than 50% of our outstanding common stock, or any person or group becoming the
beneficial owner of 50% of the voting power represented by our outstanding common stock, the holders of the Warrants will be entitled
to receive upon exercise of the Warrants the kind and amount of securities, cash or other property that the holders would have
received had they exercised the Warrants immediately prior to such fundamental transaction.


 


The
Warrants were issued in registered form under a warrant agency agreement between us and the warrant agent. The warrant agent is
Equiniti Trust Company.


 


On
December 30, 2020, we received a written notice from Listing Qualifications Department of The Nasdaq Stock Market LLC indicating
that the Warrants would be suspended from listing on the Nasdaq Capital Market. A Form 25-NSE was filed with the SEC on December
30, 2020, which removed the Warrants from listing and registration on the Nasdaq Capital Market. The terms of the Warrants are
not affected by the delisting, and the Warrants may still be exercised in accordance with their terms to purchase our common stock. We anticipate that the Warrants will be quoted on the over-the-counter markets operated by OTC Markets Group
under the symbol “AMRHW.”


 


Except
as otherwise provided in the Warrants or by virtue of such holder’s ownership of shares of our common stock, the holder
of a Warrant does not have the rights or privileges of a holder of our common stock, including any voting rights, until the holder
exercises the Warrant.