Quince Therapeutics Inc (NASDAQ:QNCX) stock is trading sharply lower Thursday after the biotech company followed up Wednesday's rally with a Form 8-K that underscores how precarious its situation is. Here’s what investors need to know amid this week’s volatility.
QNCX Stock Tumbles After Strategic Review Euphoria
The filing expands on this week's announcement that Quince hired LifeSci Capital as exclusive financial advisor to explore strategic alternatives, including a potential reverse merger.
The new disclosure shows Quince ended 2025 with about $5.8 million in cash and cash equivalents, $11.9 million in short-term investments and $16.4 million outstanding on an unsecured loan from the European Investment Bank.
Management also confirmed that lead candidate eDSP failed to meet primary or secondary endpoints in the NEAT trial, leaving the company with "no meaningful operations" and no resources to advance programs.
Reverse Merger, Delisting And Bankruptcy Risks Pressure Shares
Quince said the only path to shareholder value is executing a reverse merger with a private company, but noted it has no agreements in place and may not secure a deal on attractive terms, or at all. To fund the process, the company may issue more equity or debt and could use proceeds to pay down obligations.
The 8-K highlights risks around potential Nasdaq delisting, acceleration of the EIB loan and the possibility of Chapter 7 or 11 bankruptcy proceedings, where common shareholders would likely recover little or nothing.
QNCX Shares Plunge Thursday
QNCX Price Action: Quince Therapeutics shares were down 52.07% at 29 cents at the time of publication on Thursday. The stock is approaching its 52-week low of 12 cents, according to Benzinga Pro data.
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