Smart Online has raised $1 million through the sale of 400,000 shares of stock at $2.50 each to Atlas Capital.

Atlas is a current investor in Smart Online (SOLN.OK), a Durham-based provider of software services. The stock was trading at $3 a share on Friday morning.

The transaction closed on March 30, Smart Online said in a filing with the Securities and Exchange Commission.

Proceeds will be used for ongoing operations, legal and professional expenses related to SEC “matters” and installment payments due to sellers of iMart, a Smart Online acquisition.

Smart Online is conducting an internal investigation of its finances.

The investigation is the latest in a series of events troubling Smart Online, which went public in 2005. Suspending of its stock was suspended for two weeks in January by the SEC “because of possible manipulative conduct occurring in the market for the company’s stock,” Smart said in an SEC filing acknowledging the suspension.

Smart Online was due to be listed on the Nasdaq stock exchange, but when the SEC suspension was announced Nasdaq withdrew its plans.

Smart Online: