Incara Pharmaceuticals took another step forward in its recovery from near shutdown on Wednesday, disclosing a commitment for an additional $5 million in financing.

Goodnow Capital, which agreed to provide $3 million in July, signed a further deal to provide $5 million more. Incara is required to complete a reorganization and also advance its proposed new drug compounds for the treatment of Lou Gehrig’s Disease and other diseases, the company said.

“The proceeds of each of these financing transactions are to be advanced to the company over time according to a pre-approved budget,” Incara said in a statement.

According to Incara, the $8 million will be used to advance AEOL 10150, a catalytic antioxidant compound for the treatment of amyotrophic lateral sclerosis through Pahse I clinical trials.

Incara: www.incara.com