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CARLSBAD, CA - Qualigen Therapeutics, Inc. (NASDAQ:QLGN), whose stock has surged over 47% in the past six months according to InvestingPro data, announced Tuesday it has closed a $41 million private investment in public equity (PIPE) financing led by Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI). The financing represents a significant boost for the company, which currently maintains a market capitalization of approximately $9.12 million.
According to the company’s press release statement, Faraday Future invested $30 million in common and preferred stock, representing approximately 55% of pro forma beneficial ownership. Faraday’s Founder and Global Co-CEO YT Jia personally invested about $4 million with a two-year voluntary lockup, representing approximately 7% ownership. (InvestingPro subscribers have access to 12 additional investment tips about QLGN, including detailed analysis of its financial health and market performance.)
Other investors in the financing include SIGN Foundation, a blockchain technology company backed by Binance Labs, Sequoia Capital, IDG, and Circle.
The financing marks a strategic shift for Qualigen, which plans to rebrand as CXC10 and focus on Web3 and cryptocurrency businesses. The company intends to use the majority of the funds to establish this new crypto venture while maintaining its existing business operations.
The new crypto business will center on three areas: a digital asset treasury called C10, an AI-powered crypto trading agent named BesTrade, and real-world asset products including a stablecoin.
As part of the transaction, Jerry Wang joins Qualigen as Co-CEO, while YT Jia will serve as Chief Advisor. Koti Meka, CFO of Faraday Future, has been appointed as CFO of Qualigen.
Kevin Richardson, Co-CEO of Qualigen, stated that the financing "provides the capital, strategic support, and leadership required to initiate a bold transformation of our company."
The company did not specify a timeline for the rebranding or launch of its new crypto products. According to InvestingPro analysis, the company currently maintains a FAIR financial health rating, with analysts not anticipating profitability this year. The stock currently trades at $5.38, showing a year-to-date return of approximately 28%.
In other recent news, Qualigen Therapeutics has announced significant developments. The company regained compliance with Nasdaq’s minimum stockholders’ equity requirement through a $4.5 million private placement of Series A-3 Preferred Stock. This move comes after Qualigen received a notice from Nasdaq regarding its failure to meet the $2.5 million stockholders’ equity requirement earlier this year. Additionally, Faraday Future has announced a strategic investment of approximately $30 million in Qualigen, which would result in Faraday holding about 55% of Qualigen’s common stock.
Qualigen has also secured multiple patents for its cancer drug QN-302 across 25 countries, including Europe, India, China, and Russia. These patents, which cover the product and its manufacturing methods, extend protection into 2040. Furthermore, Qualigen appointed Kevin Chen as an independent member of its Board of Directors. Chen is currently the Chief Economist and Chief Investment Officer of Horizon Financial and holds board positions at several publicly listed companies.
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