DARA BioSciences, Inc. to Raise $2.8 Million Pursuant to Securities Purchase Agreement
1/2/2013 9:17:30 AM
RALEIGH, N.C.--(BUSINESS WIRE)--DARA BioSciences, Inc. (Nasdaq:DARA) (the "Company" or "DARA") announced that it entered into a definitive securities purchase agreement with certain investors providing for the issuance of $2,800,000 of shares of Series B-3 and Series B-4 convertible preferred stock (convertible into a combined total of 3,684,210 shares of common stock), two and one half year warrants to purchase up to 1,842,105 shares of common stock at an exercise price of $1.05 and five and one half year warrants to purchase up to 1,842,105 shares of common stock at an exercise price of $1.05. None of the warrants are exercisable for six months from the initial issuance date. The Series B-3 and Series B-4 convertible preferred stock is convertible at any time into shares of common stock at an initial conversion price of $0.76 per share. David J. Drutz, M.D., Chief Executive Officer, commented, "We are pleased to have consummated this financing, which will provide additional capital for the commercial activities related to Soltamox®, our FDA-approved treatment for breast cancer, and for Gelclair, our FDA-cleared product for the treatment of oral mucositis, which we expect to launch in the first quarter of 2013. Funds will also be used for general corporate purposes. We expect that with this additional funding we will have enough cash to effectively execute our commercial plan and believe that this raise will alleviate our needs for additional financing in 2013."