DARA BioSciences (NASDAQ:DARA), which earlier this week acquired cancer therapeutics firm Oncogenerix, has made yet another deal, this one an agreement to raise $1.7 million in a private placement.

DARA has reached a definitive agreement with an unnamed institutional investor to sell preferred stock valued at $1.7 million and warrants to purchase 619,308 shares of common stock at $1.31 per share. The warrants expire five years from the date they are issued. DARA expects to close the transaction on January 20.

The securities are being offered in accordance with a shelf registration statement that was declared effective last April. Raleigh-based DARA says in securities filings that proceeds from the offering will be used for working capital.

DARA has been developing two clinical stage compounds: KRN5500, a treatment for neuorpathic pain caused by chemotherapy; and DB959, a type 2 diabetes drug candidate. KRN5500, which has fast track status from the U.S. Food and Drug Administration, is in phase 2 clinical trials. DB959 is ready to advance into phase 2 clinical trials.

DARA is now positioning itself to market cancer drugs. On January 17, DARA acquired South Carolina specialty pharmaceutical company Oncogenerix in a stock deal. Oncogenerix holds the U.S. rights to Soltamox, a liquid version of breast cancer drug Tamoxifen. The acquisition brings DARA its first revenue-generating product. But beyond that Soltomax, DARA is also interested in Oncogenerix’s work on other liquid formuatiuons of cancer drugs as it pursues making generic versions of injectable cancer medicines that are losing patent protection.

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