Quoin Pharmaceuticals has entered into a private placement financing of up to approximately $50 million as the late-stage clinical biotechnology company advances QRX003 for Netherton Syndrome and other rare disease programs.
The transaction includes approximately $30.8 million of upfront funding and potentially another $19.2 million if investors elect to exercise accompanying warrants for cash.
Participants include healthcare-focused institutional investors Sirenia Capital Management, Sphera Healthcare, AIGH Capital Management, Nantahala Capital, StemPoint Capital and Stonepine Capital, along with members of Quoin’s management team and board.
Leerink Partners is serving as lead placement agent, while BTIG and Lake Street Capital Markets are co-placement agents.
Under the securities purchase agreement, Quoin will issue 6,305,300 American Depositary Shares, or pre-funded warrants in lieu of ADSs, with warrants covering another 3,152,650 ADSs.
The combined purchase price is $4.88 per ADS and accompanying warrant.
The ordinary warrants have an exercise price of $6.10 per ADS, representing potential aggregate proceeds of approximately $19.2 million.
They are immediately exercisable and expire on the earlier of five years after closing or 30 days following a public announcement that the primary endpoint has been met in Quoin’s CL-QRX003-004 clinical study evaluating QRX003 for Netherton Syndrome.
The financing is expected to close around August 31, subject to customary conditions.
Quoin plans to use the upfront proceeds for operating expenses, research and development, completion of QRX003 clinical development, working capital, potential acquisitions and general capital expenditures.
Assuming all accompanying warrants are exercised for cash, Quoin expects aggregate net proceeds to fund the business into the second half of 2029.
Quoin’s pipeline centers on QRX003 and QRX009, which the company is developing across a range of rare and orphan disease indications.
