Quoin Pharmaceuticals (QNRX) Stock Is Skyrocketing Friday: What's Going On?

Quoin Pharmaceuticals Ltd – ADR (NASDAQ:QNRX) shares are trading higher Friday morning after the company announced a private placement financing of up to $104.5 million. The deal with new and existing institutional investors includes an initial upfront funding of $16.8 million.

What To Know: The clinical-stage specialty pharmaceutical company, which focuses on rare and orphan diseases, will issue a combination of American Depositary Shares and pre-funded warrants. The financing also includes four series of warrants, which, if exercised, would bring the total proceeds to the $104.5 million mark.

The company plans to use the net proceeds for general corporate purposes, including working capital, research and development, and the completion of clinical development for its QRX003 drug for Netherton Syndrome. The private placement is expected to close on or about October 14.

While such offerings can sometimes pressure a stock, shares are likely trading higher because the deal was priced at a premium to the company’s prior day’s closing price $8.16.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, QNRX currently has a Momentum score of 21.05, supported by positive short and medium-term price trends.

QNRX Price Action: Quoin Pharmaceuticals shares were up 149.14% at $20.40 at the time of publication Friday, according to Benzinga Pro.

Read Also: AstraZeneca Expands Virginia Investment To $4.5 Billion For Cancer, Obesity Drugs

How To Buy QNRX Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Quoin Pharmaceuticals’ case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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