SCHEDULE: Stonepine Capital Discloses 9.9% Stake in Quoin Pharma

Stonepine Capital Management and its affiliates have reported a 9.9% beneficial ownership stake in Quoin Pharmaceuticals, Ltd., primarily through American Depositary Shares and warrants.

Summary

• Stonepine Capital Management, LLC, Stonepine Capital, L.P., Stonepine GP, LLC, and Jon M. Plexico collectively reported beneficial ownership of 3,030,926 Ordinary Shares of Quoin Pharmaceuticals, Ltd.
• This ownership represents 9.9% of the issuer's outstanding Ordinary Shares.
• The stake comprises 58,728 American Depositary Shares (ADSs), pre-funded warrants to acquire 81,212 ADSs, and ordinary warrants to acquire 484,848 ADSs.
• Each ADS represents 35 Ordinary Shares of Quoin Pharmaceuticals, Ltd.
• The reported percentage is calculated based on 29,364,180 Ordinary Shares (equivalent to 838,976 ADSs) outstanding as of November 3, 2025, as disclosed in the issuer's prospectus filed on December 5, 2025.
• The pre-funded and ordinary warrants are subject to a 9.99% beneficial ownership limitation.
• The reporting persons certified that the securities were not acquired and are not held for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 7

Explanation: The disclosure of a significant 9.9% beneficial ownership by an institutional investor like Stonepine Capital is generally a positive signal, indicating confidence in Quoin Pharmaceuticals. The inclusion of warrants suggests a strategic, long-term interest.

Positives

• A significant institutional investor, Stonepine Capital, has taken a substantial 9.9% stake in Quoin Pharmaceuticals, potentially signaling confidence in the company's future prospects.
• The investment structure, including both ADSs and warrants, indicates a strategic approach to ownership and potential future equity participation.

Risks

• The beneficial ownership of warrants is subject to a 9.99% limitation, which could restrict Stonepine Capital's ability to fully exercise all warrants if it would exceed this threshold without further regulatory action.
• The value of the investment is inherently tied to the market performance of Quoin Pharmaceuticals' Ordinary Shares and ADSs.

Future Outlook

NA

Industry Context

This Schedule 13G filing indicates a significant passive investment by Stonepine Capital in Quoin Pharmaceuticals, a common occurrence in the biotechnology or pharmaceutical sector where institutional investors often take positions in companies with promising pipelines or market potential. A 9.9% stake is just below the 10% threshold that would typically trigger a Schedule 13D filing, which implies an intent to influence or control the company. The use of warrants suggests a long-term interest and potential for increased ownership.

Comparison to Industry Standards

• A 9.9% beneficial ownership stake is a substantial position for an institutional investor in a publicly traded company, often placing the investor among the top shareholders.
• The structure of the investment, including both ADSs and warrants, is a standard approach for investors seeking exposure while managing immediate capital outlay and potential dilution.
• The 9.99% beneficial ownership limitation on warrants is a common protective clause to prevent triggering certain regulatory thresholds (like 10% ownership) that would require more extensive disclosure or could impact the company's corporate governance.

Corporate Governance

Stakeholder Impact

• Shareholders: The presence of a significant institutional investor like Stonepine Capital could be viewed positively, potentially increasing investor confidence and liquidity.
• Company Management: Management will be aware of a large, passive shareholder, which could implicitly influence strategic considerations, though Stonepine has disclaimed intent to influence control.

Next Steps

• Quoin Pharmaceuticals will continue its operations, with Stonepine Capital as a significant shareholder.
• Stonepine Capital may choose to exercise its warrants in the future, potentially increasing its direct equity stake.

Key Dates

Recommendation

The filing indicates a significant, passive investment by Stonepine Capital, which is generally a positive signal of institutional confidence. However, a Schedule 13G filing alone does not provide enough fundamental information about Quoin Pharmaceuticals' operations, financial performance, or future prospects to warrant a 'buy' or 'sell' recommendation. It primarily signals a notable ownership stake. Therefore, a 'hold' recommendation is appropriate, suggesting investors maintain their current position while awaiting further operational or financial updates from the company.

Keywords

Quoin Pharmaceuticals, Stonepine Capital Management, Schedule 13G, Beneficial Ownership, Ordinary Shares, American Depositary Shares, ADSs, Warrants, Pre-funded Warrants, Institutional Investor, SEC Filing, QPT