Quoin Pharmaceuticals raises up to $50M in private placement

Quoin Pharmaceuticals Ltd. (NASDAQ: QNRX) has entered into a securities purchase agreement with healthcare-focused institutional investors to raise up to $50.0 million in gross proceeds through a private placement, according to a company statement.

The financing includes approximately $30.8 million in upfront funding and up to an additional $19.2 million upon the potential cash exercise of accompanying ordinary warrants at the investors' election.

Participating investors include Sirenia Capital Management LP, Sphera Healthcare, AIGH Capital Management, Nantahala Capital, StemPoint Capital LP, and Stonepine Capital Management, among others, as well as members of Quoin's management team and board of directors.

Under the terms of the agreement, Quoin will issue 6,305,300 American Depositary Shares, or pre-funded warrants in lieu thereof, along with accompanying ordinary warrants to purchase up to 3,152,650 ADSs at a combined purchase price of $4.88 per ADS. The ordinary warrants carry an exercise price of $6.10 per ADS and expire five years from closing or 30 days after the company announces results from its clinical trial evaluating QRX003 for Netherton Syndrome, whichever comes first.

Leerink Partners is serving as lead placement agent, with BTIG and Lake Street Capital Markets acting as co-placement agents.

The private placement is expected to close on or about August 31, 2026, subject to customary closing conditions. Quoin said it intends to use net proceeds for general corporate purposes, including research and development and completion of clinical development of QRX003 for Netherton Syndrome. The company said aggregate net proceeds, assuming full warrant exercise, are expected to fund operations into the second half of 2029.

The securities are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under federal or state securities laws. Quoin said it has agreed to file a registration statement with the Securities and Exchange Commission to register the resale of the ADSs involved in the transaction.

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