QNRX Stock Soars 300% After $104.5M Financing Through Private Placement

Quoin Pharmaceuticals (QNRX) became the top-four trending ticker on Stocktwits on Friday morning after the stock jumped nearly 300% after the company announced that it has entered into a securities purchase agreement with new healthcare-focused institutional investors, with the potential to raise $104.5 million in gross proceeds.

The late clinical-stage specialty pharmaceutical company focused on rare and orphan diseases said that this purchase agreement also includes an initial upfront funding of $16.5 million and up to an additional $88 million upon the potential cash exercise of accompanying warrants at the election of the investors.

The firm added that the private placement was priced at a premium to the company’s prior day’s closing stock price. Quoin said that the financing includes participation from new healthcare-focused investors, including AIGH Capital Management, Soleus Capital, Nantahala Capital, Diadema Partners, Stonepine Capital Management, ADAR1 Capital Management, and Velan Capital, among others.

Retail sentiment on Quoin jumped to ‘extremely bullish’ from ‘bearish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Quoin said it will issue an aggregate of 1,993,940 American Depository Shares (ADSs) and accompanying warrants to purchase up to an aggregate of 7,975,760 ADSs, at a combined purchase price of $8.25 per ADS and accompanying warrants.

The company said it intends to use the upfront net proceeds for general corporate purposes, which may include operating expenses, research and development, including completion of clinical development of QRX003 for Netherton Syndrome, working capital, future acquisitions, and general capital expenditures. 

The aggregate net proceeds are expected to be sufficient to fund the company into 2027. Shares of Quoin have gained nearly 41% this year and have jumped 76% in the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Kalshi Doubles Valuation To $5B In Latest Funding Round: Report

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