Qualigen Therapeutics, Inc., a pharmaceutical company based in Carlsbad, California, has entered into a financial agreement with Marizyme, Inc., providing the latter with a $1.25 million loan. The transaction, which took place on Monday, was disclosed in a recent filing with the Securities and Exchange Commission (SEC).
The loan is structured as a demand promissory note bearing an interest rate of 18% per annum. Marizyme, which is incorporated in Nevada, has the option to prepay the principal and interest at any time without incurring any penalties.
This financial maneuver comes as part of Qualigen's broader business activities in the pharmaceutical preparations sector. The company, formerly known as Ritter Pharmaceuticals Inc., operates under the Delaware jurisdiction and is listed on The Nasdaq Capital Market under the ticker symbol NASDAQ:QLGN.
The details of the promissory note were included as an exhibit in the SEC filing, providing transparency into the terms of the agreement. The document specifies that the note was issued on July 12, 2024, and the funds were advanced to Marizyme on July 15, 2024.
The SEC filing also includes standard corporate information about Qualigen, such as their business and mail addresses, contact number, and state of incorporation. This financial disclosure is part of the company's regular reporting requirements under the Securities Exchange Act of 1934.
Qualigen's CEO, Michael S. Poirier, signed off on the filing, which was submitted on Thursday, ensuring compliance with regulatory standards. The loan to Marizyme represents a significant financial decision for Qualigen, although the filing does not elaborate on the intended use of the funds by Marizyme.
In other recent news, Qualigen Therapeutics secured a $2 million cash infusion through a non-convertible senior note, as disclosed in a recent SEC filing. The agreement stipulates an 18% annual interest rate with a maturity date of July 8, 2025, and requires partial prepayments from any future financing proceeds. Alongside this financial transaction, significant changes occurred within Qualigen's board of directors, with the resignation of four members and the appointment of three new ones.
The company also reported that a warrant holder partially exercised their right to purchase shares of common stock, resulting in 12,155,830 outstanding shares. Furthermore, the holder of Qualigen's 8% Senior Convertible Debenture has fully converted the original principal balance of $3.3 million into Qualigen's common stock. These are the recent developments concerning the company.
InvestingPro Insights
In light of Qualigen Therapeutics' recent financial agreement with Marizyme, Inc., a glimpse at the company's current financial health and stock performance offers additional context for investors. According to InvestingPro data, Qualigen has a market capitalization of $3.84 million, reflecting its size within the pharmaceutical preparations sector. Despite a significant return over the last week with a 51.05% increase and a strong return over the past month at 65.83%, the company has experienced a notable decline over the last year, with a price total return of -69.6%. This volatility is echoed in an InvestingPro Tip, which notes that the stock generally trades with high price volatility.
Another InvestingPro Tip highlights Qualigen's financial challenges, including weak gross profit margins, as evidenced by a gross profit of -$4.29 million in the last twelve months as of Q1 2024. Moreover, the company's short-term obligations exceed its liquid assets, which could raise concerns about its financial stability. For investors seeking more detailed analysis and additional InvestingPro Tips, there are 5 more tips available on Qualigen at InvestingPro. To access these insights and more, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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