Qualigen Therapeutics (NASDAQ: QLGN) stock doubled during intraday trading Friday after the company secured a $2 million loan through senior note issuance.
Qualigen Therapeutics (NASDAQ: QLGN), a biotechnology company specializing in cancer therapeutics, has finalized a significant financing agreement with an institutional investor, as disclosed in their recent 8-K filing with the Securities and Exchange Commission.
According to the filing dated July 11, 2024, Qualigen has entered into a securities purchase agreement, issuing a Senior Note to secure a $2 million loan. This Senior Note, which is unsecured and nonconvertible, carries an annual interest rate of 18% on its original principal amount.
The note will mature on July 8, 2025. According to the agreement, the company will not be liable to pay principal and interest until maturity. However, the company must make partial prepayments based on a percentage of any future financings.
In conjunction with this financing, Qualigen announced significant changes to its board of directors. On July 5, directors Richard David, Sidney Emery, Kurt Kruger, and Ira Ritter resigned from their positions, in compliance with the terms outlined in the agreement. Their departures coincide with the appointment of Campbell Becher, Robert Lim, and Cody Price to the board, effective upon the company’s receipt of the $2 million loan.
Furthermore, Qualigen reported that the holder of its 8% Senior Convertible Debenture, due December 22, 2025, has opted to convert the entire original principal balance of $3.3 million into its common stock. This conversion, coupled with recent warrant exercises, has led to an increase in the outstanding common stock to 11,382,830 shares.
Qualigen Therapeutics (NASDAQ: QLGN) Stock Reaction
QLGN stock surged 111.45% on Friday, closing at $0.4341, marking a 55.04% increase for the week. The trading volume was 420,237,344 shares, significantly higher than the average daily volume of 12.31 million.
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