Dara BioSciences, which desperately is in need of additional capital, has revised its share offering and now hopes to raise $12.5 million through the sale of preferred stock.
In a regulatory filing Tuesday, Dara said it is seeking to sell the preferred shares for $1,000 each. Each share includes a warrant to purchase additional shares at an exercise price that is 125 percent of the closing bid price of Dara's stock before the pricing of the offering.
The Raleigh company expects the offering will raise $11.3 million, after deducting fees and expenses. The company plans to use the proceeds from the sale to fund "commercial activities related to our product portfolio, " among other uses.
Dara had 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.
The company’s stock has fallen nearly 60 percent this year.
The company has two products on the market: Soltamox, an oral liquid formulation used in the treatment and prevention of breast cancer, and Bionect, a topical treatment for skin irritation and burns caused by radiation. Dara also has exclusive U.S. commercial rights to market and sell Gelclair for the treatment of oral mucositis, or swelling and bleeding of the mouth and gums.
Dara is also developing a treatment of chemotherapy-induced peripheral neuropathy in cancer patients.