Quince Therapeutics stock soars after announcing $11.5 million private placement

Published 12/06/2025, 22:24
© Reuters.

Investing.com -- Quince Therapeutics Inc (NASDAQ:QNCX) stock surged 38% in afterhours trading Thursday after the company announced it has secured a private placement agreement expected to generate approximately $11.5 million in upfront proceeds, with potential for an additional $10.4 million if accompanying warrants are fully exercised.

The private placement, led by healthcare-focused institutional investor Nantahala Capital with participation from existing stockholders including ADAR1 Capital Management and members of Quince’s senior management, is priced at $1.325 per share - representing a 10% premium over the company’s closing price of $1.20.

As part of the agreement, Quince will issue an aggregate of 8,671,928 shares of common stock (or pre-funded warrants) along with accompanying warrants to purchase an equal number of shares at an exercise price of $1.20 per share. The warrants will be immediately exercisable and expire five years from issuance.

The company intends to use the proceeds to fund its ongoing pivotal Phase 3 NEAT clinical trial in Ataxia-Telangiectasia (A-T), as well as for working capital, research and development expenses, general and administrative costs, and capital expenditures.

Quince expects the combined proceeds from this placement and its current cash reserves to fund operations into the second quarter of 2026, or potentially the second half of 2026 if all warrants are exercised for cash.

Citizens Capital Markets is serving as the lead placement agent, with Maxim Group LLC and Brookline Capital Markets acting as co-placement agents. The private placement is expected to close during the week of June 16, 2025, subject to customary closing conditions.

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