Quince Therapeutics announced a private placement financing that will provide up to $22 million to advance its pivotal Phase 3 clinical trial for Ataxia-Telangiectasia (A-T), a rare neurological disorder. The South San Francisco-based biotechnology company secured $11.5 million in upfront proceeds, with the potential for an additional $10.4 million if accompanying warrants are exercised in full.
Financing Structure and Investor Participation
The private placement was led by healthcare-focused institutional investor Nantahala Capital, with participation from existing Quince stockholders including ADAR1 Capital Management and members of the company's senior management team. The financing was priced at a 10% premium over the company's previous closing price of $1.20 per share, with securities offered at $1.325 per share.
At closing, Quince will issue 8,671,928 shares of common stock (or pre-funded warrants) along with accompanying warrants to purchase an equal number of shares. The warrants carry an exercise price of $1.20 per share, become exercisable immediately, and expire five years from issuance. The private placement is expected to close during the week of June 16, 2025.
Funding the NEAT Clinical Trial
Quince intends to use the net proceeds primarily for working capital and general corporate purposes, with a focus on funding the ongoing enrollment of its pivotal Phase 3 NEAT (Neurological Effects of eDSP on Subjects with A-T) clinical trial. The trial, designated NCT06193200/IEDAT-04-2022, is evaluating the company's lead candidate eDSP in patients with Ataxia-Telangiectasia.
The company stated that the net upfront proceeds, combined with its current cash, cash equivalents, and short-term investments, are expected to fund operations into the second quarter of 2026. If the warrants are exercised in full for cash, the funding runway could extend into the second half of 2026.
Rare Disease Focus and Strategic Positioning
Quince Therapeutics positions itself as a late-stage biotechnology company dedicated to "unlocking the power of a patient's own biology for the treatment of rare diseases." The company's focus on Ataxia-Telangiectasia, a rare genetic disorder affecting the nervous system and immune system, represents a significant unmet medical need in the rare disease space.
The financing structure, with its premium pricing and participation from both institutional investors and company insiders, suggests confidence in the company's clinical development strategy and the potential for its eDSP candidate in treating A-T patients.
Financial Advisory and Regulatory Considerations
Citizens Capital Markets served as the lead placement agent for the private placement, with Maxim Group LLC and Brookline Capital Markets acting as co-placement agents. The securities are being offered through a private placement and have not been registered under the Securities Act of 1933, requiring compliance with applicable exemptions from registration requirements.
