Quoin Pharmaceuticals (NASDAQ:QNRX) stock is falling on Tuesday after the clinical-stage specialty pharmaceutical company announced details of a public offering for its shares.
The public offering has Quoin Pharmaceuticals selling 4.06 million shares of QNRX stock for $1.60 each. These shares also come with Series D and Series E warrants to acquire another 8.12 million shares. The exercise price for the warrants is the same as the public offering price.
Quoin Pharmaceuticals is expecting gross proceeds of $6.5 million from the public offering. The company says it intends to use these funds for general corporate purposes.
To go along with this offering, Quoin Pharmaceuticals has reached an agreement with current investors to adjust the price of warrants in its prior offerings. This has it lowering the exercise price of these warrants to match the $1.60 exercise price for the new warrants.
How This Affects QNRX Stock
Selling news shares in this public offering increases the total number of outstanding shares of QNRX. That also dilutes the investments of current shareholders in the company. This is likely one reason for the stock falling today.
The other is the $1.60 price for the offering. This is a strong discount compared to Quoin Pharmaceuticals’ prior closing price of $2.90 per share. It makes sense the stock would drop closer to the public offering price as a result.
QNRX stock is down 49.7% as of Tuesday morning.
Investors seeking out more of the most recent stock market stories are in luck!
We have all of the hottest stock market news for Tuesday! A few examples include why shares of Momentus (NASDAQ:MNTS) and Zhongchao (NASDAQ:ZCMD) stock are up today as well as the biggest pre-market stock movers this morning. All of that news is ready to go at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
