Quoin Pharmaceuticals Prices Private Placement with up to $50 Million in Potential Proceeds

Rare Daily Staff

Quoin Pharmaceuticals said it has entered into a private-placement financing expected to generate approximately $30.8 million in upfront gross proceeds, with the potential to raise an additional $19.2 million if investors exercise accompanying warrants for cash.

Quoin is a late clinical-stage specialty pharmaceutical company developing treatments for rare and orphan diseases. Its pipeline includes QRX003 and QRX009, with programs targeting conditions including Netherton syndrome, peeling skin syndrome, palmoplantar keratoderma and pachyonychia congenita.

Healthcare-focused institutional investors participating in the financing include Sirenia Capital Management, Sphera Healthcare, AIGH Capital Management, Nantahala Capital, StemPoint Capital and Stonepine Capital Management. Members of Quoin’s management team and board of directors also participated.

Quoin said it plans to use the upfront net proceeds for general corporate purposes, including operating expenses, working capital, research and development, capital expenditures and potentially future acquisitions. The funds are also expected to support completion of QRX003’s clinical development program in Netherton syndrome.

Assuming the warrants are fully exercised for cash, Quoin said the aggregate net proceeds are expected to fund operations into the second half of 2029. That projection depends on the closing of the offering and on investors electing to exercise the warrants.

The securities are being sold in a private placement under an exemption from U.S. securities registration requirements. Quoin said it has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the ADSs issued in the transaction, as well as ADSs underlying the pre-funded warrants and ordinary warrants.

Under the terms of the financing, Quoin plans to sell 6.31 million American depositary shares, or ADSs, or pre-funded warrants in lieu of ADSs, along with ordinary warrants to purchase up to 3.15 million ADSs. Investors will pay a combined $4.88 for each ADS, or pre-funded warrant, and accompanying warrant. The company expects the transaction to close on or about Aug. 31, subject to customary closing conditions.

The warrants have an exercise price of $6.10 per ADS and could generate up to $19.2 million in additional gross proceeds if fully exercised for cash. They will be exercisable immediately and expire on the earlier of five years after closing or 30 days after Quoin announces that the primary endpoint has been met in its CL-QRX003-004 trial of QRX003 in Netherton syndrome.