said Wednesday that it had raised $10.5 million in a stock offering, helping it build up some of the money it needs to stay alive for another year.
The Cambridge, Mass.-based company said it sold 40 million shares of common stock at 29 cents a share to institutional and individual investors, netting $10.5 million. Biopure also issued warrants to these investors, enabling them to buy 20 million shares of common stock at an exercise price of 31 cents a share.
Biopure is trying to develop a blood substitute known as Hemopure.
On Dec. 8, the company said it expected to run out of money by the end of January, adding that it would need an extra $19 million to keep operating through October. The company, which has suffered a number of regulatory and financial setbacks, said it had $6.3 million in cash and cash equivalents as of Oct. 31,
the end of its recent fiscal year.
Biopure recently reported that it lost $9.4 million, or 16 cents a share, on revenue of $1.77 million for the three months ended Oct. 31, the fourth quarter of its fiscal year. That compares with a loss of $13 million, or 16 cents a share, on revenue of $1.15 million for the same period in 2003.
The company's stock rose 6 cents, or 18.8%, to 38 cents on Wednesday.