Qualigen Therapeutics Announces Successful Closing of $41 Million PIPE Financing Led by Faraday Future, Accelerating New Business Transformation into Crypto

Rhea-AI Summary

Qualigen Therapeutics (NASDAQ: QLGN) has announced the successful closing of a $41 million PIPE financing, primarily led by Faraday Future (NASDAQ: FFAI). The financing includes a $30 million investment from FF, representing approximately 55% ownership, and a $4 million personal investment from FF's Founder YT Jia.

The company is undergoing a strategic transformation into a Web3- and crypto-focused business, planning to rebrand as CXC10. The new business will focus on three main areas: C10 Digital Asset Treasury, DeAI Agent trading platform, and RWA & Ecosystem Tokens. As part of this transformation, Jerry Wang joins as Co-CEO, and FF's CFO Koti Meka assumes the CFO role at QLGN.

Positive

• None.

Negative

• Significant shift away from core business into highly volatile crypto sector
• Heavy concentration of ownership (62%) in hands of new investors
• Substantial business risk in transitioning from healthcare to crypto/Web3
• Potential regulatory uncertainties in new crypto venture

Insights

Financial Restructuring Analyst

Qualigen's $41M financing and pivot to crypto represents a radical business transformation with high execution risk and regulatory uncertainty.

This $41 million PIPE financing led by Faraday Future marks a radical transformation for Qualigen Therapeutics from its current business model to a crypto/Web3-focused enterprise. The investment structure gives FF a controlling 55% stake, effectively making this an acquisition disguised as financing. The appointment of FF executives to key leadership positions (Co-CEO and CFO) further solidifies this takeover.

The planned rebranding to CXC10 and complete business model pivot introduces extreme execution risk. Qualigen is venturing into a highly volatile sector with significant regulatory uncertainties. The company plans to develop crypto assets, an AI trading agent, and real-world asset tokenization - all complex initiatives requiring specialized expertise that appears disconnected from Qualigen's historical operations.

Faraday Future's own financial challenges and limited crypto expertise raise serious questions about this partnership. FF has struggled to achieve profitability in its core electric vehicle business, making this diversification into crypto puzzling. The involvement of crypto entities like SIGN Foundation (backed by Binance and others) suggests this may be an attempt to gain a public listing for crypto operations through a reverse takeover of a NASDAQ-listed company.

While the capital injection provides short-term financial stability, the fundamental business transformation introduces substantial uncertainties. Investors should scrutinize how the company plans to navigate regulatory frameworks for crypto assets, especially given potential SEC oversight of crypto securities.

Carlsbad, CA, Sept. 30, 2025 (GLOBE NEWSWIRE) -- Qualigen Therapeutics, Inc. (NASDAQ: QLGN) (“Qualigen” or “the Company”) today announced the successful closing of a $41 million private investment in public equity (PIPE) financing led by Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“FF”), along with its Founder and Global Co-CEO YT Jia, President Jerry Wang, SIGN Foundation – a blockchain technology company backed by Binance Labs, Sequoia Capital (US, India, China), IDG, and Circle, and other leading investors.

FF has invested $30 million in QLGN common and preferred stock, representing approximately 55% of pro forma beneficial ownership. YT Jia, has personally invested approximately $4 million and signed up a two-year voluntary lockup, representing approximately 7% ownership. The Company plans to use majority of the financing to establish its new crypto business adventure.

This financing marks a defining milestone in Qualigen’s evolution as the Company embarks on a strategic transformation into a Web3- and crypto-focused business, with plans to rebrand as CXC10 soon.

Moving forward, the Company’s existing business will continue to progress, and on this basis, is initiating a new crypto business, CXC10, centered on three growth engines which include six key products:

1. C – Crypto 10 (“C10”) as Value Anchor – through the C10 Digital Asset Treasury, C10 Index, and a potential C10 ETF. More information please refer to https://www.c10index.com/.
2. X – DeAI Agent (“BesTrade”) – an AI-powered crypto trading agent, designed to become the nexus between users and value, helping market participants find the best paths and outcomes.
3. C – RWA & Ecosystem Tokens – including the C10 Stablecoin and the EAI + Crypto Dual-Bridge RWA (Real World Asset) product, bridging traditional assets with Web3.
   

The Company and CXC10 are positioned to become a top U.S. public company bridging Web2 and Web3, as well as AI and crypto, while also pioneering new economic models connecting AI, crypto, and traditional sectors.

As part of this strategic investment, Jerry Wang joins us as Co-CEO, while Mr. Jia serves as Chief Advisor. Koti Meka, CFO of FF, was appointed as CFO of QLGN.

“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. “Moving forward, we will sharpen our strategic focus, strengthen technical capabilities, and embrace an open ecosystem approach as we strive toward our goal.”

About Qualigen Therapeutics, Inc.

For more information about Qualigen Therapeutics, Inc., please visit www.qlgntx.com.

About CXC10

For more information about CXC10, please visit www.cxc10.com

Forward-Looking Statements

 This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company may in some cases use terms such as “predicts,” “believes,” “potential,” “continue,” “anticipates,” “estimates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “likely,” “will,” “should” or other words that convey uncertainty of the future events or outcomes to identify these forward-looking statements. The Company’s forward-looking statements are based on current beliefs and expectations of its management team that involve risks, potential changes in circumstances, assumptions, and uncertainties, including statements regarding the timing of the offering. Any or all of the forward-looking statements may turn out to be wrong or be affected by assumptions the Company makes that later turn out to be incorrect, or by known or unknown risks and uncertainties. These forward-looking statements are subject to risks and uncertainties including risks related to the Company’s ability to regain compliance with Nasdaq’s continued listing requirements, including the Company’s ability to file its Form 10-Q for the period ended September 30, 2024, or otherwise in the future, or otherwise maintain compliance with any other listing requirement of The Nasdaq Capital Market, the potential de-listing of the Company’s shares from The Nasdaq Capital Market due to its failure to comply with the Nasdaq’s continued listing requirement, or its alternatives, or otherwise in the future, and the other risks set forth in the Company’s filings with the Securities and Exchange Commission, including in its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. For all these reasons, actual results and developments could be materially different from those expressed in or implied by the Company’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which are made only as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements beyond the date of this news release, except as required by law. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact:

Investor Relations
ir@qlgntx.com.

FAQ

What is the size and structure of Qualigen's (QLGN) recent PIPE financing?

Qualigen secured a $41 million PIPE financing, with Faraday Future investing $30 million (55% ownership) and YT Jia personally investing $4 million (7% ownership).

How will QLGN use the proceeds from the $41M financing?

The majority of the financing will be used to establish its new crypto business venture, CXC10, focusing on three areas: C10 Digital Asset Treasury, DeAI Agent trading platform, and RWA & Ecosystem Tokens.

Who are the new key executives joining Qualigen after the PIPE financing?

Jerry Wang joins as Co-CEO of Qualigen, while YT Jia serves as Chief Advisor. Additionally, Koti Meka, CFO of Faraday Future, was appointed as CFO of QLGN.

What are the main components of QLGN's new crypto business CXC10?

CXC10 will focus on three main components: C10 Digital Asset Treasury (including C10 Index and potential ETF), DeAI Agent (AI-powered crypto trading), and RWA & Ecosystem Tokens (including C10 Stablecoin).

How much ownership will Faraday Future and YT Jia hold in QLGN?

Faraday Future will hold approximately 55% ownership through a $30 million investment, while YT Jia will personally hold about 7% ownership through a $4 million investment with a two-year lockup.