Qualigen Therapeutics, Inc. (QLGN) has announced a public offering aimed at raising capital to advance its therapeutic programs focused on adult and pediatric cancer treatments. The offering, detailed in a prospectus filed with the SEC, involves 14,724,058 shares of common stock priced at $0.13 per share.
Offering Details
The offering includes pre-funded warrants to purchase up to 11,972,754 shares of common stock for investors whose ownership would exceed 4.99% (or 9.99%) of the company's outstanding stock. Each pre-funded warrant is exercisable for one share at $0.001 per share.
Univest Securities, LLC is acting as the exclusive placement agent for the offering, which is being conducted on a "reasonable best efforts" basis. The company expects to close the offering by September 9, 2024.
Use of Proceeds
Qualigen anticipates net proceeds of approximately $3.1 million from the offering, after deducting placement agent fees and estimated expenses. The company intends to allocate these funds to:
- Advancement of the Phase 1a clinical trial for QN-302, a G-quadruplex-selective transcription inhibitor, currently in trials for pancreatic cancer.
- Preclinical studies for the Pan-RAS program, targeting mutated RAS genes in various cancers.
- General working capital and potential expansion of the relationship with Marizyme, Inc. regarding DuraGraft.
- Accelerated payment of a $2.0 million senior note issued in July 2024.
QN-302: Targeting Pancreatic Cancer
QN-302, Qualigen's lead program, is an investigational small molecule designed to inhibit cancer cell proliferation by binding to G4s prevalent in cancer cells. The FDA has granted Orphan Drug Designation to QN-302 for pancreatic cancer, offering benefits such as seven-year marketing exclusivity and regulatory support.
Pan-RAS Program: Inhibiting RAS Mutations
The Pan-RAS program focuses on developing small molecules that inhibit the interaction of mutated RAS proteins with their effector proteins. This approach aims to suppress tumor formation in cancers such as pancreatic, colorectal, and lung cancers.
Financial Position and Future Outlook
Qualigen Therapeutics acknowledges that its working capital deficiency and recurring losses raise substantial doubt about its ability to continue as a going concern. The company's ability to continue operations depends on securing additional funding. This public offering represents a strategic effort to bolster its financial position and advance its clinical programs.
