BioDelivery Sciences (Nasdaq: BDSI) is getting a $40 million vote of confidence from investors.

The Raleigh-based drug development firm said Wednesday that institutional investors have agreed to buy nearly 6.8 million of its common shares and 2.7 million of newley designated Series A convertible preferred stock for an aggregate price of $4.21 each.

The shares were sold on Tuesday.

Shares closed at $4.07 on Wednesday.

BDSI noted that the Series A shares were used ”an accommodation to those investors who desire to not own in excess of 9.98 percent of BDSI’s outstanding voting securities following the financing.”

The funds will be used for completion of a Phase 3 clinical trial for a chronic pain treatment and an expected new drug application for a treatment of opioid dependance, the company said.

Funds also could be used for ”adding to its pipeline,” BDSI added.