DARA BioSciences (NASDAQ:DARA) is raising $6 million through a private placement of the company’s stock.
DARA is making the offering from a shelf registration statement that the company filed in 2011. In this offering certain institutional investors will purchase more than 2.1 million DARA shares at the price of $2.765 per share. DARA earlier this week completed a reverse stock split to boost the company’s stock price. The company had been contending with warnings from the Nasdaq that its stock did not meet the minimum $1 price to list on the exchange.
After expenses, DARA estimates its net proceeds from the offering will be approximately $5.5 million. The company said the proceeds would be used for working capital and general corporate purposes, including funding commercial activities related to the company’s product portfolio of cancer and cancer supportive products.
The offering is expected to close Feb. 18.
