This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

DARA Biosciences Looks to Raise $4M

NEW YORK ( TheStreet) -- At least there's a headline now to go along with the volatility in shares of DARA Biosciences (DARA).

After Tuesday's closing bell, the Raleigh, N.C.-based drug developer announced it's commenced a registered direct offering to sell up to $4 million worth of units consisting of Series A preferred stock and warrants. The proposed sale represents substantial dilution to existing shareholders, as the company's market capitalization is around $11.4 million.



The news comes after the two most active trading sessions of 2010 for DARA Biosciences' common shares. Even as the broad market saw thin volumes as the typical lull following the Christmas holiday was exacerbated by the blizzard blanketing the Northeast United States, the stock jumped nearly 75% on Monday to $3.90 with 3.2 million changing hands, far eclipsing its trailing three-month daily average of around 85,000.

That move was followed up by Tuesday's plus 20% pullback to $3.11 on volume of 1.1 million after the company declared effective a previously disclosed shelf registration statement, filing a one-page "notice of effectiveness" with the Securities and Exchange Commission.

Tuesday's filing referred back to an amended Form S-1 originally filed on Nov. 12 that provided details of a proposed offering of $4 million worth of preferred stock and warrants representing an additional $4 million worth of common stock.

A call to DARA Biosciences for comment on the recent movement in the share price wasn't returned on Tuesday, and a message stated the company was on holiday break this week.

In its press release, DARA Biosciences said it plans to use the proceeds of the offering for ongoing development of its lead candidates, working capital and general corporate purposes.

DARA Biosciences was last able to raise funds in October when it agreed to sell more than 600,000 units of common stock and warrants to several institutional investors, receiving gross proceeds of $1.4 million. In May, shortly after implementing a 16-for-1 reverse stock split, the company launched an underwritten public offering of $10 million worth of securities but it indefinitely suspended the offering on July 1.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.42 -15.98 -0.79%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs