Qualigen Therapeutics, Inc. (NASDAQ: QLGN) announced the successful completion of a $4.5 million private placement financing on July 28, 2025, providing crucial capital to advance its oncology-focused therapeutic pipeline. The clinical-stage biotechnology company sold 4,500 shares of Series A-3 Preferred Stock at $1,000 per share to institutional and accredited investors.
Financing Structure and Terms
The Series A-3 Preferred Stock carries an initial conversion feature allowing holders to convert their shares into an aggregate of 1,607,143 shares of common stock at a conversion price of $2.80 per share. The conversion terms remain subject to adjustment according to the Series A-3 Preferred Stock Certificate of Designation provisions.
Univest, LLC served as the exclusive placement agent for the offering, which was conducted as a private placement under Section 4(a)(2) and Rule 506(b) of Regulation D under the Securities Act of 1933. The securities have not been registered under federal or state securities laws, restricting their immediate resale unless proper registration or exemption requirements are met.
Regulatory Compliance and Registration
Qualigen has committed to filing a registration statement with the Securities and Exchange Commission covering the resale of common stock underlying the Series A-3 Preferred Stock within 45 days of the closing date. This registration will provide liquidity options for investors once approved by regulatory authorities.
Therapeutic Pipeline and Strategic Focus
The Carlsbad, California-based company maintains a focused approach on developing platform treatments for adult and pediatric cancers, with particular emphasis on programs eligible for orphan drug designations. Qualigen's current pipeline encompasses three distinct therapeutic programs addressing high unmet medical needs in oncology.
QN-302 represents the company's selective G-quadruplex inhibitor program, targeting various tumor types including pancreatic cancer. The compound is designed to interfere with specific DNA structures that play crucial roles in cancer cell survival and proliferation.
QN-247 focuses on hematologic malignancies through nucleolin-targeting mechanisms. This approach represents a novel strategy for addressing blood cancers by targeting specific cellular proteins essential for cancer cell function.
The company's third major program involves developing a family of small-molecule RAS oncogene protein-protein interaction inhibitors. RAS proteins are among the most frequently mutated oncogenes in human cancers, making them attractive therapeutic targets despite historical challenges in drugging these proteins.
Capital Allocation Strategy
Qualigen intends to utilize the net proceeds from the Series A-3 Preferred Stock sale for working capital purposes, supporting ongoing research and development activities across its therapeutic portfolio. The financing provides operational runway as the company advances its clinical programs and seeks to achieve key developmental milestones.
The company's strategic focus on orphan drug designations reflects its commitment to addressing rare diseases and underserved patient populations, potentially offering regulatory advantages including market exclusivity periods and development incentives.
Market Position and Development Strategy
As a clinical-stage biotechnology company, Qualigen operates in the competitive oncology therapeutics space, where novel mechanisms of action and targeted approaches continue to drive innovation. The company's multi-program approach allows for portfolio diversification while maintaining focus on cancer therapeutics.
Each therapeutic program is designed to address specific areas of high unmet medical need, positioning Qualigen to potentially capture significant market opportunities if clinical development proves successful. The company's emphasis on both adult and pediatric cancer applications broadens its potential patient population and market reach.
