ASHBURN, Va. - Quoin Pharmaceuticals Ltd. (NASDAQ: QNRX), a clinical stage pharmaceutical company with a current market capitalization of $3.27 million and a healthy current ratio of 3.02, has announced the terms for a public offering of securities, expected to generate gross proceeds of about $6.8 million. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, a crucial factor for clinical-stage biotech firms. The offering comprises 15,111,110 ordinary shares, represented by American Depositary Shares (ADSs), and warrants to purchase additional shares at a combined price of $0.45 per ADS and associated warrants. This pricing represents a significant discount from the stock's 52-week high of $6.18, though InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value assessment.
The offering includes Series F warrants and Series G warrants, exercisable immediately and expiring in two years and five years, respectively. The transaction is anticipated to close around December 23, 2024, subject to customary closing conditions.
Quoin intends to allocate the net proceeds towards general corporate purposes, which may encompass operational expenses, research and development activities, working capital, potential acquisitions, and capital expenditures. Maxim (NASDAQ:MXIM) Group LLC is serving as the sole placement agent for the offering.
Additionally, Quoin has reached agreements with certain holders of existing warrants to adjust the exercise price and extend their expiration date to December 23, 2029. These securities are being offered under a registration statement declared effective by the Securities and Exchange Commission on December 20, 2024. With analyst price targets ranging from $1.50 to $10.00, investors seeking deeper insights into Quoin's financial health and growth prospects can access comprehensive analysis through InvestingPro's detailed research reports, available as part of their coverage of over 1,400 US equities.
Quoin Pharmaceuticals specializes in developing treatments for rare and orphan diseases. Its pipeline includes potential therapies for conditions such as Netherton Syndrome, Peeling Skin Syndrome, Palmoplantar Keratoderma, Scleroderma, and Epidermolysis Bullosa.
The company cautions that statements regarding expectations for the offering's closure and the application of proceeds are forward-looking and subject to risks and uncertainties. The information is based on a press release statement.
In other recent news, Quoin Pharmaceuticals has made significant strides in its Netherton Syndrome (NS) study, advancing the clinical assessment of QRX003, a potential treatment for this rare genetic disorder. The U.S. Food and Drug Administration has approved an additional clinical study, marking the most extensive application of QRX003 in a clinical setting so far. The company has also expanded its NS clinical trials to include two new sites in the United Kingdom (TADAWUL:4280) and is preparing to open additional sites in various Western European countries.
Moreover, Quoin Pharmaceuticals has made amendments to shareholder rights and adjusted executive compensation programs. The shareholders approved compensation programs for CEO Dr. Michael Myers and COO Denise Carter, which align with the company's Compensation Policy and provide competitive incentives. The company's strategic goals and governance practices are expected to be supported by these developments.
Furthermore, the company has been granted an additional 180-day period by The Nasdaq Stock Market LLC to meet its minimum bid price requirement, based on compliance with all other Nasdaq Capital Market initial listing standards. Quoin Pharmaceuticals is actively exploring options to regain compliance with Nasdaq's listing requirements.
These developments underline Quoin Pharmaceuticals' commitment to addressing the unmet medical needs of rare and orphan diseases and enhancing shareholder value.
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