Oxygen Biotherapeutics (NASDAQ:OXBT) boosted its cash position as shareholders exercised their rights to purchase additional shares from a July stock offering.

With the exercise of those warrants, Oxygen net $6 million giving the Morrisville-based company more cash to apply toward clinical trials for levosimendan, a drug being studied to treat acute decompensated heart failure. The condition in heart disease patients includes the worsening of symptoms, such as shortness of breath, swelling and fatigue. Oxygen struck a deal last month to acquire New Jersey company Phyxius Pharma, which brings to Oxygen the North American rights to levosimendan.

The warrants were part of a July 21 stock offering, where Oxygen sold preferred stock, that was convertible into common stock. That offering raised approximately $5.4 million. Investors in that offering also received a warrant allowing them to purchase more stock at the $2.60 price.

Oxygen shares were trading at $6.66 cents in mid-day trading Friday, up 11.56 percent from Thursday’s $5.97 closing price.

“The exercise of these warrants increases our current cash on hand to approximately $8.4 million, Michael Jebsen, Oxygen Biotherapeutics President, CFO and Interim CEO said in a statement. “Upon closing of the previously announced Phyxius Pharma transaction, we expect to be in a position to commence the Phase 3 FDA trial of levosimendan for the prevention and treatment of low cardiac output syndrome in heart surgery patients.”

The Food and Drug Administration granted levosimendan on fast track status, which expedites the regulatory review of new drugs addressing a serious need for which there is no other approved treatment. Oxygen said that the FDA has given guidance that a single successful clinical trial will be sufficient for an approval decision. Phyxius had acquired North American rights to levosimendan from Finland company Orion Corporation. The drug is already approved in 53 countries to treat acute decompensated heart failure.

The Phyxius deal brings will bring to Oxygen a late-stage drug candidate much further along in development than anything in Oxygen’s own drug pipeline. Oxygen’s lead product is Oxycyte, a compound that improves the delivery of oxygen to damaged tissue that is in mid-stage clinical trials as a potential traumatic brain injury treatment.

When the Phyxius deal closes, Phyxius CEO John Kelley will become the top executive of the combined company, which will be known as Oxygen Biotherapeutics. Jebsen will continue as CFO.