Proceeds from brokered financing to be used for business development
By Devika Patel
Knoxville, Tenn., Oct. 26 - Dara BioSciences, Inc. negotiated a registered direct offering of stock, according to a prospectus supplement filed Tuesday with the Securities and Exchange Commission.
The company will raise $1.38 million through agent Ladenburg Thalmann & Co. Inc. to advance business development activities, for working capital and other general corporate purposes.
Dara will sell 612,667 common shares at $2.25 apiece. The per-share purchase price is a 5.06% discount to $2.37, the closing price of the stock on Oct. 25.
Investors also will receive warrants for 306,334 common shares. The five-year warrants are exercisable at $2.79, a 17.72% premium to the Oct. 25 closing price.
Settlement is expected Oct. 28.
Based in Raleigh, N.C., Dara is a pharmaceutical company that acquires therapeutic molecules and medical technologies.
| Issuer: | Dara BioSciences, Inc.
|
| Issue: | Common stock
|
| Amount: | $1,378,501
|
| Shares: | 612,667
|
| Price: | $2.25
|
| Warrants: | For 306,334 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.79
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 28
|
| Stock symbol: | Nasdaq: DARA
|
| Stock price: | $2.37 at close Oct. 25
|
| Market capitalization: | $7.08 million
|
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