Qualigen Therapeutics (NASDAQ:QLGN) saw its stock jump 18% on Tuesday after announcing the completion of a $41 million private investment in public equity (PIPE) deal led by Faraday Future Intelligent Electric (NASDAQ:FFAI).
The fundraising signals a major pivot for the company, which intends to rebrand as CXC10 and shift its focus toward Web3 and cryptocurrency ventures. Faraday Future contributed $30 million through purchases of common and preferred stock, giving it around 55% of pro forma beneficial ownership.
Faraday’s Founder and Global Co-CEO YT Jia personally invested about $4 million and agreed to a two-year voluntary lockup, securing roughly 7% ownership. Additional investors included the SIGN Foundation, a blockchain group backed by Binance Labs, Sequoia Capital, IDG, and Circle.
“Completion of the financing marks a pivotal moment in Qualigen’s history, which provides the capital, strategic support, and leadership required to initiate a bold transformation of our company,” said Kevin Richardson, Co-CEO of QLGN.
The company said most of the new funds will be allocated toward building its crypto operations, while its existing business activities will continue. The new unit, CXC10, will be built around three growth drivers: Crypto 10 as a value anchor, an AI-based crypto trading agent named BesTrade, and ecosystem tokens including a C10 Stablecoin.
As part of the investment agreement, Faraday Future’s President Jerry Wang has been appointed Co-CEO of Qualigen, YT Jia will take on the role of Chief Advisor, and FF’s CFO Koti Meka will serve as CFO of QLGN.
Qualigen Therapeutics stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.