The company has issued 1.81 million shares of common stock at a price of $2.20 per share through a private placement to accredited investors. In addition, the investors received warrants to purchase 227,272 shares of common stock for a period of five years at a cash and cashless exercise price of $4.40 and $5.50 per share, respectively.
Proceeds from the financing will be primarily used to fund the company’s Phase III clinical program of Ketotransdel, the company’s lead topical pain drug. The registration trial will be a randomized, double-blind, placebo controlled Phase III trial to study the efficacy and safety of Ketotransdel in acute soft tissue injuries.
The company is exploring potential partnerships with US and foreign based companies that have sales and marketing infrastructures to support Ketotransdel in the event that the product is approved and commercialized.