Oxygen Biotherapeutics (Nasdaq: OXBT) has raised $4.6 million in new financing with a three-year note and stock warrants.

An institutional investor, which was not identified, provided the funding.

The news set Oxygen shares up 11 percent, or 30 cents, to $3 in midday trading.

The company said the investor will be paid at a 15-percent interest rate.

The investor can convert the note into stock at $2.255 per share. Stock warrants total nearly 2,040,000 shares.

“Oxygen expects to use the net proceeds of the offering primarily for general corporate purposes, including Oxygen’s dermatology, cosmetics and other businesses, but does not anticipate using a significant portion of the proceeds for patient testing relating to traumatic brain injury indications,” the company said in a statement.

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