- Quince Therapeutics paid $5.5 million to settle its total debt worth $16.4 million.
- The company had earlier said that it has a runway up to the second half of 2026 if its warrants are exercised.
- The stock has tanked 97% since the company announced disappointing trial results for its treatment of a rare nervous system disorder.
Shares of Quince Therapeutics (QNCX) gave up most of their pre-market gains, but traded with almost 10% gains on Monday morning after the company announced it has settled its debt with the European Investment Bank, a move that clears the way for advancing its restructuring efforts.
Quince Therapeutics said it paid $5.5 million and, as a result, has settled its total debt worth $16.4 million. With this payment, all commitments under both the loan and settlement agreements have been fully satisfied.
“By settling Quince’s debt obligations, we believe that we have removed a substantial overhang that was constraining the company’s flexibility and ability to pursue strategic alternatives, including, but not limited to, merger, reverse merger, asset sale, or other strategic transactions,” said CEO Dirk Thye.
The company had earlier appointed LifeSci Capital as its exclusive financial advisor to assist with the restructuring.
How Did Retail Traders React?
Retail sentiment on Stocktwits remained ‘bullish’ over the past 24 hours, amid ‘high’ message volumes.
Users speculated a potential merger after the debt was cleared.
Stock Sinks After Disappointing Phase 3 Results
In January, Quince Therapeutics’ Phase 3 NEAT trial evaluating eDSP in patients with Ataxia-Telangiectasia, a rare disorder impacting the nervous and immune systems, missed its primary and key secondary endpoints. QNCX stock has since crashed more than 97%.
According to its last financial filing for the quarter ended Sept. 30, 2025, the company reported $26.3 million in cash and investments. The funds are expected to support operations through the second quarter of 2026, but could be extended into the second half of 2026 if its warrants are fully exercised.
Last year, the company raised about $11.5 million in upfront funding through a financing round, with the potential to secure an additional $10.4 million if the associated warrants are fully exercised for cash.
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