ASHBURN, Va. - Quoin Pharmaceuticals Ltd. (NASDAQ: QNRX), a specialty pharmaceutical company, has announced the pricing of a public offering aimed at raising approximately $6.5 million. The offering includes 4,062,500 shares, each represented by American Depositary Shares (ADS), and warrants for purchasing additional shares.
The combined purchase price for one ADS and associated Series D and Series E warrants is $1.60. These warrants, exercisable immediately upon issuance, are priced at $1.60 per share and will expire two and five years from the date of issuance, respectively. The company expects the offering to close on or about March 7, 2024, subject to standard closing conditions.
Quoin intends to use the net proceeds for general corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the offering.
In conjunction with this offering, Quoin has reached an agreement with certain investors to reduce the exercise price of previously issued warrants from $13.20 and $12.00 per ADS to $1.60 per ADS. These adjustments are a result of the company's reverse stock split on July 18, 2023, and will take effect upon the closing of the current offering. Additionally, the expiration date of these warrants will be extended to March 7, 2029.
The offering is based on a registration statement filed with the Securities and Exchange Commission (SEC) and declared effective on February 14, 2024. The securities are being offered only using a prospectus, which can be obtained from the SEC's website or directly from the placement agent.
Quoin focuses on developing treatments for rare and orphan diseases, with a pipeline that includes potential therapies for conditions like Netherton Syndrome and Epidermolysis Bullosa.
The details presented in this article are based on a press release statement from Quoin Pharmaceuticals.
InvestingPro Insights
In light of Quoin Pharmaceuticals Ltd.'s (NASDAQ: QNRX) recent public offering, keen investors may be interested in the company's financial health and market performance. With a modest market capitalization of $2.86 million, Quoin is navigating the competitive landscape of specialty pharmaceuticals. An important InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some stability in executing its corporate strategies.
Despite the challenging market conditions, QNRX has seen a significant return over the last week, with a 9.02% price total return. However, it's crucial to note that the stock has experienced a steep decline over more extended periods, with a -41.06% return over the last three months and a -52.92% return over the last six months. This volatility reflects in the company's stock price movements, which are quite volatile, as another InvestingPro Tip suggests.
For those considering an investment, the company's price-to-book ratio stands at 0.39 for the last twelve months as of Q3 2023, indicating that the stock may be undervalued compared to its assets. However, analysts do not anticipate Quoin will be profitable this year, and the company has not been profitable over the last twelve months, with a -54.83% return on assets.
For more in-depth analysis and additional InvestingPro Tips, interested parties can explore https://www.investing.com/pro/QNRX. There are 12 more tips available that provide a comprehensive view of Quoin Pharmaceuticals' financial status and market performance. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, ensuring you have the most up-to-date and detailed financial analytics at your fingertips.
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