Street Calls of the Week
Investing.com -- Quoin Pharmaceuticals Ltd. (NASDAQ:QNRX) stock surged 138% Friday after the late clinical-stage specialty pharmaceutical company announced a private placement agreement potentially worth up to $104.5 million with healthcare-focused institutional investors.
The deal includes an initial upfront funding of $16.5 million and the potential for an additional $88 million through warrant exercises. Notably, the placement was priced at a premium to Quoin’s prior day’s closing stock price, reflecting strong investor confidence in the company’s pipeline.
The financing attracted participation from several prominent healthcare investors, including AIGH Capital Management, Soleus Capital, Nantahala Capital, and Velan Capital, among others. Maxim Group LLC is serving as the sole placement agent for the transaction.
Under the agreement, Quoin will issue approximately 1.99 million American Depository Shares (or pre-funded warrants) along with accompanying warrants to purchase up to nearly 8 million additional ADSs at a combined purchase price of $8.25 per ADS and accompanying warrants.
The warrants are structured in four tranches with exercise prices ranging from $9.075 to $12.375 per ADS. Each tranche is tied to specific clinical and regulatory milestones for the company’s lead product candidate, QRX003, which is being developed for the treatment of Netherton Syndrome, a rare genetic skin disorder.
Quoin intends to use the upfront proceeds for general corporate purposes, including research and development activities and the completion of clinical development for QRX003. The company expects the total potential funding to be sufficient to support operations into 2027.
The private placement is expected to close around October 14, 2025, subject to customary closing conditions.
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