DARA BioSciences (Nasdaq: DARA) says it plans to raise $10 million through a stock offering.
A portion of the funds will be used for development and commercialization of an oncology drug portfolion, the company says.
The press announcement reads as follows:
“DARA BioSciences, Inc. (Nasdaq:DARA) (the “Company” or “DARA”) announced that it entered into definitive securities purchase agreements with certain investors in connection with a public offering providing for the sale of $10,100,000 of shares of Series B-2 convertible preferred stock (which are convertible into a total of 10,100,000 shares of common stock), five year warrants to purchase up to 5,050,000 shares of common stock at an exercise price of $1.00 per share and five year warrants to purchase up to 5,050,000 shares of common stock at an exercise price of $1.25 per share. The Series B-2 convertible preferred stock is convertible at any time into shares of common stock at an initial conversion price of $1.00 per share The conversion price represents approximately a 25% discount to the volume weighted average trading price of the Company’s common stock during the five trading days preceding entry into the securities purchase agreements.
“The financing will provide the Company with net proceeds of approximately $9.0 million to be used to fund expenses associated with the Company’s efforts to develop and commercialize a portfolio of oncology treatment and supportive care pharmaceutical products and for working capital.”