Qualigen Therapeutics, Inc. Announces Pricing of $3.46 Million Public Offering

Rhea-AI Summary

Qualigen Therapeutics (NASDAQ: QLGN) has announced the pricing of a $3.46 million public offering. The offering includes 14,724,058 shares of common stock at $0.13 per share and pre-funded warrants for up to 11,972,754 shares at $0.129 each. The closing is expected around September 6, 2024. Univest Securities, acted as the exclusive placement agent. The company plans to use the net proceeds for various purposes, including:

• Paying off a $2,000,000 Senior Note issued in July 2024
• Advancing clinical trials and preclinical studies
• General working capital
• Possible expansion of relationship with Marizyme, Inc.
• Potential future acquisitions

Positive

• Raised $3.46 million in gross proceeds through public offering
• Funds to be used for accelerated payment of $2 million Senior Note
• Proceeds to support advancement of clinical trials and preclinical studies
• Potential for expansion of partnership with Marizyme, Inc.

Negative

• Dilution of existing shareholders due to issuance of new shares and warrants
• Low offering price of $0.13 per share indicates potential market undervaluation
• Need for additional funding suggests possible financial strain

Insights

Financial Analyst

Qualigen Therapeutics' $3.46 million public offering signals a significant capital raise, but at a steep discount to market price. The $0.13 per share pricing represents a substantial dilution for existing shareholders. The inclusion of pre-funded warrants adds complexity to the deal structure.

The company's intent to use proceeds for debt repayment, clinical trials and potential acquisitions suggests a multi-pronged strategy. However, the relatively small size of the offering may only provide short-term relief. The accelerated repayment of the $2 million Senior Note could improve the balance sheet but leaves funds for other initiatives.

Investors should closely monitor Qualigen's cash burn rate and pipeline progress, as further dilutive offerings may be necessary in the near future to sustain operations and fund clinical development.

Biotech Industry Analyst

This capital raise underscores the challenging funding environment for small-cap biotech companies. Qualigen's decision to pursue a public offering, despite unfavorable terms, highlights the urgent need for capital to advance its pipeline and maintain operations.

The allocation of funds towards clinical trials and preclinical studies is important for Qualigen's long-term prospects. However, the size of the raise may constrain the scope and pace of these efforts. The potential expansion of the Marizyme collaboration could provide additional value, but details remain unclear.

Investors should carefully evaluate Qualigen's clinical progress and cash runway post-offering. The company's ability to achieve meaningful milestones with this funding will be critical in determining its future financing options and overall viability in the competitive biotech landscape.

CARLSBAD, Calif., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Qualigen Therapeutics, Inc. (NASDAQ: QLGN) (the “Company”) today announced the pricing of a public offering of 14,724,058 shares of common stock, par value $0.001 per share (each a “Share,” and collectively, the “Shares”) at a public offering price of $0.13 per Share and pre-funded warrants to purchase up to 11,972,754 Shares at a price of $0.129 per pre-funded warrant with an exercise price of $0.001 per share (the “Pre-Funded Warrants”). The Pre-Funded Warrants are exercisable upon issuance and will remain exercisable until exercised in full. The closing of the offering is expected to occur on or about September 6, 2024, subject to the satisfaction of customary closing conditions.

Univest Securities, LLC acted as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering were approximately $3.46 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the sale of the securities offered by us pursuant to this prospectus for our operations and for other general corporate purposes, which may include, but are not limited to: i) payment on an accelerated basis of the $2,000,000 Senior Note issued in July 2024; ii) advancement of our clinical trial and preclinical studies; iii) general working capital; iv) possible expansion of our relationship with Marizyme, Inc. under the Co-Development Agreement; and v) possible future acquisitions.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-272623) originally filed with the Securities and Exchange Commission (“SEC”) on June 13, 2023, as amended, and became effective on September 4, 2024. The offering was made only by means of a prospectus, which forms a part of the effective registration statement. Electronic copies of the final prospectus may be obtained for free on the SEC’s website located at http://www.sec.gov and may also be obtained by contacting Univest Securities, LLC at 75 Rockefeller Plaza, Suite 18C, New York, NY 10019, by phone at (212)-343-8888 or e-mail at info@univest.us.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Qualigen Therapeutics, Inc.

For more information about Qualigen Therapeutics, Inc., please visit www.qlgntx.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company may in some cases use terms such as “predicts,” “believes,” “potential,” “continue,” “anticipates,” “estimates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “likely,” “will,” “should” or other words that convey uncertainty of the future events or outcomes to identify these forward-looking statements. The Company’s forward-looking statements are based on current beliefs and expectations of its management team that involve risks, potential changes in circumstances, assumptions, and uncertainties, including statements regarding the timing of the offering. Any or all of the forward-looking statements may turn out to be wrong or be affected by assumptions the Company makes that later turn out to be incorrect, or by known or unknown risks and uncertainties. These forward-looking statements are subject to risks and uncertainties including risks related to the Company’s ability to regain compliance with Nasdaq’s continued listing requirements, including the Minimum Bid Price Requirement and the Minimum Stockholders’ Equity Requirement or its alternatives prior to October 31, 2024, the Company’s ability to file its Form 10-Q for the period ended September 30, 2024, or otherwise in the future, or otherwise maintain compliance with any other listing requirement of The Nasdaq Capital Market, the potential de-listing of the Company’s shares from The Nasdaq Capital Market due to its failure to comply with the Minimum Bid Price Requirement or the Minimum Stockholders’ Equity Requirement or its alternatives, and the Company’s ability to file its Form 10-Q for the period ended September 30, 2024, or otherwise in the future, and the other risks set forth in the Company’s filings with the Securities and Exchange Commission, including in its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. For all these reasons, actual results and developments could be materially different from those expressed in or implied by the Company’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are made only as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements beyond the date of this news release, except as required by law. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact:

Investor Relations
ir@qlgntx.com.

Source: Qualigen Therapeutics, Inc.

FAQ

What is the size and price of Qualigen Therapeutics' (QLGN) recent public offering?

Qualigen Therapeutics (QLGN) priced a $3.46 million public offering, consisting of 14,724,058 shares at $0.13 per share and pre-funded warrants for up to 11,972,754 shares at $0.129 each.

When is the expected closing date for Qualigen Therapeutics' (QLGN) public offering?

The closing of Qualigen Therapeutics' (QLGN) public offering is expected to occur on or about September 6, 2024, subject to customary closing conditions.

How does Qualigen Therapeutics (QLGN) plan to use the proceeds from its public offering?

Qualigen Therapeutics (QLGN) plans to use the proceeds for operations, paying off a $2 million Senior Note, advancing clinical trials and preclinical studies, general working capital, possible expansion of its relationship with Marizyme, Inc., and potential future acquisitions.

Who acted as the placement agent for Qualigen Therapeutics' (QLGN) public offering?

Univest Securities, acted as the exclusive placement agent for Qualigen Therapeutics' (QLGN) public offering.