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SOUTH SAN FRANCISCO - Quince Therapeutics, Inc. (NASDAQ:QNCX), a clinical-stage biotech company with a market capitalization of $54.11 million and a "FAIR" financial health rating according to InvestingPro, has secured a private placement agreement with institutional and accredited investors that will provide approximately $11.5 million in upfront proceeds, the company announced in a press release.
The financing, priced at $1.325 per share, represents a 10% premium over the company’s previous closing price of $1.20. The agreement includes the issuance of 8,671,928 shares of common stock (or pre-funded warrants) along with accompanying warrants that could generate up to an additional $10.4 million if exercised in full. According to InvestingPro analysis, the company maintains a healthy current ratio of 4.05 and holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly.
Healthcare-focused institutional investor Nantahala Capital is leading the private placement, with participation from existing stockholders including ADAR1 Capital Management and members of Quince’s senior management team.
Quince plans to use the proceeds to fund its pivotal Phase 3 NEAT clinical trial for Ataxia-Telangiectasia (A-T), a rare disease, as well as for working capital and general corporate purposes. The company expects the funding to support operations into the second quarter of 2026, or potentially the second half of 2026 if all warrants are exercised.
The warrants have an exercise price of $1.20 per share, will be immediately exercisable, and will expire five years from issuance. The private placement is expected to close during the week of June 16, 2025, subject to customary closing conditions. Despite recent market volatility, QNCX has demonstrated strong performance with a 74.83% return over the past year, and appears undervalued based on InvestingPro’s Fair Value analysis. Discover 6 more exclusive InvestingPro Tips and comprehensive financial metrics by subscribing to InvestingPro.
Citizens Capital Markets is serving as the lead placement agent, with Maxim Group LLC and Brookline Capital Markets acting as co-placement agents.
The securities being offered have not been registered under the Securities Act of 1933 and may not be sold in the United States without registration or an applicable exemption.
In other recent news, Quince Therapeutics has announced a private placement agreement expected to generate approximately $11.5 million in upfront proceeds, with the potential for an additional $10.4 million if accompanying warrants are fully exercised. This financial boost is intended to support the company’s ongoing pivotal Phase 3 NEAT clinical trial for Ataxia-Telangiectasia, alongside other operational costs. Quince Therapeutics reported over 50% enrollment in this trial, with a topline readout anticipated in the fourth quarter of 2025. The company’s fiscal year 2024 financial results revealed a net loss of $56.8 million, with research and development expenses primarily linked to the Phase 3 trial. Despite the losses, Quince’s cash reserves are projected to fund operations until the NEAT trial data is available.
Boral Capital maintained a Buy rating on Quince Therapeutics but lowered its price target from $12 to $4, citing potential downward pressure from an updated at-the-market sales facility. Meanwhile, Oppenheimer initiated coverage with an Outperform rating and set a $10 price target, highlighting the significant market potential of Quince’s lead candidate, EryDex. Oppenheimer’s analysis emphasizes the potential for EryDex to improve the standard of care in rare disorders, supported by the company’s financial stability. These developments underscore the varied analyst perspectives on Quince Therapeutics’ future in the biopharmaceutical industry.
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