Local Tech Wire
RALEIGH, N.C. – DARA BioSciences (Nasdaq: DARA) said Thursday that it had suspended its efforts to raise $10 million through sales of stock and warrants.
DARA shares jumped more than 5 percent, or 19 cents, to $3.65 in afternoon trading.
In May, DARA executed a reverse 16-for-1 stock move in order to get its shares above $1. DARA faces a de-listing threat from the NASDAQ
The company cited several reasons for the decision to stop fundraising, including dilution of shareholders and “volatile market conditions.”
DARA said positive factors included the recent announcement that SurgiVision, in which DARA is the second largest shareholder behind Boston Scientific, has received FDA approval to market a product called ClearView.
SurgiVision now plans an initial public offering, DARA noted.
The Raleigh-based company also said “high value licensing transactions in the pharmaceutical industry have accelerated with deals being consummated at earlier stages of development with significant upfront payments.”
DARA has two drug candidates undergoing clinical trial, one for treatment of cancer patients with neuropathic pain and another for type 2 diabetes.
DARA owns 82 patents and has 56 pending applications.
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