Dara Biosciences (Nasdaq: DARA) has raised $2.25 million through a discounted sale of stock to what the company described as “certain investors.”

, which is developing drugs that target diabetes, neuropathy and psoriasis, sold 2.255 million shares at a price of $1.

Dara shares closed at $1.23 on Wednesday, up 5 cents.

Buyers can sell the shares at an exercise price of $1.30 in six months. They also received warrants for additional shares that can be sold at $2.25 per share in a year. Investors received one warrant for each two shares purchased at the $1 price.

"Dara BioSciences has been able to accomplish this financing in an incredibly difficult financial climate, attesting to the investors’ confidence in the company’s strategy," John Didsbury, the company’s chief operating and chief scientific officer, said in a statement.

Dara also may sell up to 8.5 million more shares, also at $1 each.