Dara BioSciences has priced the shares of its preferred stock offering at $1.11.
The company’s shares, which opened Friday at $1.60, were down more than 20 percent in early trading.
Dara expects its proceeds from the sale to total $11.3 million after deducting fees and expenses. The sale is expected to close by the middle of next week.
The company plans to use the proceeds from the sale to fund "commercial activities related to our product portfolio," and to finance the acquisition of other approved products, among other uses.
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Dara is desperately in need of cash, and has been forced to reduce the size of its offering significantly. It earlier filed plans to raise as much as $32.5 million through a sale of stock and warrants.
The company reported earlier this month that it has only enough money to fund operations through the third quarter of this year. As of March 31, the Dara had $6.838 million in cash. The company raised $6 million in the first quarter through a sale of stock and warrants.