CARLSBAD, CA - Qualigen Therapeutics, Inc. (NASDAQ:QLGN), a biotechnology firm specializing in cancer treatments, has successfully raised $4.5 million through the sale of preferred shares to institutional and accredited investors. The company announced today that it has sold 4,500 Series A-2 Preferred Shares at $1,000 each.
The newly issued preferred shares are convertible into approximately 1.24 million common shares at a price of $3.64 per share. Univest, LLC served as the exclusive placement agent for the offering, which is expected to close today, subject to customary closing conditions.
This private placement falls under Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) of Regulation D, meaning the securities have not been registered under the Act or state securities laws. As such, they cannot be sold in the United States without SEC registration or an applicable exemption.
Qualigen has committed to filing a registration statement with the SEC within fourteen days after the closing of the transaction to facilitate the resale of the common shares underlying the Series A-2 Preferred Shares.
The announcement clarifies that the press release is not an offer to sell or a solicitation of an offer to buy any securities, and that no sale will occur in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Qualigen's forward-looking statements within the press release are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. These include the company's ability to regain and maintain compliance with Nasdaq's listing requirements and other risks detailed in its SEC filings.
The information for this article is based on a press release statement from Qualigen Therapeutics, Inc.
In other recent news, Qualigen Therapeutics has been actively managing its financial affairs, including the appointment of Graydon Bensler as an independent member of its Board of Directors. Bensler's appointment followed a comprehensive review by the board, acknowledging his financial expertise and industry experience. In addition, the company has implemented a 1-for-50 reverse stock split, reducing the number of shares outstanding from approximately 36.8 million to around 736,431 shares.
In a recent annual stockholder meeting, all director nominees were elected, and a reverse stock split was approved. The company also ratified the appointment of WithumSmith+Brown, PC as the independent registered public accounting firm. Significant changes in leadership have occurred with CEO Michael Poirier and CFO Christopher Lotz resigning, and Kevin Richardson stepping in as Interim CEO and CFO.
Qualigen Therapeutics also managed to fully convert the original principal balance of its 8% Senior Convertible Debenture of $3.3 million into common stock. Amidst these developments, the firm is facing a Nasdaq delisting notice due to noncompliance with a listing rule requiring a minimum number of independent directors on its Audit Committee. However, Qualigen received an extension to remain listed on The Nasdaq Capital Market until November 19, 2024. These are the recent developments at Qualigen Therapeutics.
InvestingPro Insights
Qualigen Therapeutics' recent $4.5 million capital raise through preferred shares comes at a critical time for the company, as revealed by InvestingPro data. The biotechnology firm's market capitalization stands at a modest $1.97 million, highlighting the significance of this fundraising effort.
InvestingPro Tips paint a challenging picture for Qualigen. The company has not been profitable over the last twelve months, with a negative gross profit of $1.31 million. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. The financial strain is further evidenced by the fact that Qualigen's short-term obligations exceed its liquid assets.
The stock's performance has been particularly concerning. InvestingPro data shows a staggering year-to-date price total return of -86.76% as of the most recent data. This is consistent with the InvestingPro Tip noting that the stock has fared poorly over the last month and has taken a significant hit over the last six months.
Despite these challenges, there may be a glimmer of hope for investors. An InvestingPro Tip suggests that the stock's Relative Strength Index (RSI) indicates it may be in oversold territory. This could potentially signal a buying opportunity for risk-tolerant investors who believe in the company's long-term prospects.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Qualigen Therapeutics, providing deeper insights into the company's financial health and market position.
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