Qualigen Therapeutics raised $4.5 million by selling Series A-3 Preferred Stock to institutional investors, focusing on cancer treatments.
Quiver AI Summary
Qualigen Therapeutics, Inc., a life sciences company specializing in cancer treatments, announced the completion of a private placement of its Series A-3 Preferred Stock, raising $4.5 million from institutional and accredited investors. The placement, which closed on July 28, 2025, involved the sale of 4,500 shares convertible into approximately 1.6 million shares of the company's common stock at a conversion price of $2.80 each. The proceeds will be used for working capital, and the company plans to file a registration statement with the SEC to facilitate the resale of the common stock underlying the preferred shares. This press release emphasizes the company's commitment to developing innovative therapeutics for cancer and infectious diseases, while also including forward-looking statements regarding its future plans and risks associated with its businesses.
Potential Positives
- Qualigen Therapeutics raised $4.5 million in gross proceeds through the sale of Series A-3 Preferred Stock, providing significant capital for working capital purposes.
- The Series A-3 Preferred Stock is convertible into common stock, potentially increasing shareholder equity and enhancing liquidity in the market.
- The company plans to file a registration statement with the SEC for the resale of common stock, indicating a commitment to transparency and compliance with regulatory requirements.
Potential Negatives
- The issuance of Series A-3 Preferred Stock may indicate financial difficulties or a need for immediate funding, raising concerns about the company's cash flow and financial stability.
- The private placement being conducted under Regulation D means that the shares are not registered with the SEC, which could limit their marketability and liquidity, potentially impacting investor confidence.
- Qualigen's forward-looking statements suggest reliance on the successful development of its product candidates and regulatory approvals, highlighting risks that may affect the company's future performance and shareholder value.
FAQ
What is the recent financing event by Qualigen Therapeutics?
Qualigen Therapeutics has completed a private placement, selling 4,500 shares of Series A-3 Preferred Stock for $4.5 million.
Who acted as the placement agent for this offering?
Univest, LLC served as the exclusive placement agent for the Series A-3 Preferred Stock offering.
What is the intended use of proceeds from the Series A-3 Preferred Stock sale?
The net proceeds will be used for working capital purposes, supporting the company's operations and growth.
What are the conversion details for the Series A-3 Preferred Stock?
The Series A-3 Preferred Stock is convertible into approximately 1,607,143 shares of common stock at a conversion price of $2.80 per share.
Will the securities be registered with the SEC?
Yes, Qualigen plans to file a registration statement covering the resale of the underlying common stock within 45 days of closing.
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Full Release
Carlsbad, CA, July 28, 2025 (GLOBE NEWSWIRE) -- Qualigen Therapeutics, Inc. (NASDAQ:QLGN) ("Qualigen" or the "Company"), a life sciences company focused on developing platform treatments for adult and pediatric cancers with the potential for orphan drug designations, today announced that it has entered into definitive securities purchase agreements with several institutional and accredited investors for the sale of its Series A-3 Preferred Stock. The private placement closed on July 28, 2025. The Company issued and sold an aggregate of 4,500 shares of Series A-3 Preferred Stock, with a stated value of $1,000 per share, for aggregate gross proceeds of $4.5 million, before deducting placement agent fees and other offering expenses. The Series A-3 Preferred Stock is initially convertible into an aggregate of 1,607,143 shares of common stock of the Company at a conversion price of $2.80 per share, subject to adjustment in accordance with the terms of the Series A-3 Preferred Stock Certificate of Designation.
Univest, LLC acted as the exclusive placement agent for the offering.
The Company intends to use the net proceeds from the sale of the Series A-3 Preferred Stock for working capital purposes.
The shares of Series A-3 Preferred Stock were offered and issued in a private placement under Section 4(a)(2) and/or Rule 506(b) of Regulation D under the Securities Act of 1933 and have not been registered under the Securities Act or applicable state securities laws. Accordingly, the shares of Series A-3 Preferred Stock and the underlying shares of common stock may not be offered or sold in the United States unless registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from such registration requirements.
The Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock underlying the Series A-3 Preferred Stock within 45 days after the closing date.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Qualigen Therapeutics, Inc.
Qualigen Therapeutics, Inc. (NASDAQ: QLGN) is a clinical-stage biotechnology company focused on developing novel therapeutics for the treatment of cancer and infectious diseases. The Company’s pipeline includes QN-302, a selective G-quadruplex inhibitor targeting various tumor types including pancreatic cancer; QN-247, a nucleolin-targeting compound for hematologic malignancies; and a family of small-molecule RAS oncogene protein-protein interaction inhibitors. Each of these programs is designed to address areas of high unmet medical need, with the potential for orphan drug designation. Qualigen is committed to advancing its therapeutic pipeline to improve patient outcomes and create long-term value for shareholders.
For more information about Qualigen Therapeutics, Inc., please visit www.qlgntx.com .
Forward-Looking Statements
This press 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. Forward-looking statements are based on current expectations, estimates, assumptions, and projections about future events and involve inherent risks and uncertainties. These forward-looking statements include, but are not limited to, statements the filing of a resale registration statement, and the Company’s future business plans and strategies.
Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “could,” “would,” “should,” “continues,” and similar expressions are intended to identify such forward-looking statements. Actual results could differ materially from those projected due to a number of factors, including risks related to the Company’s ability to successfully develop and commercialize its product candidates, regulatory developments, market conditions, the Company’s ability to maintain compliance with Nasdaq listing requirements, and other risks described in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contact: Investor Relations
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Source: Qualigen Therapeutics, Inc.