SmurfVA's Random Picks

[Ned Serious]

DARA - Yesterday's offering announcement

Seems odd to me that warrants are for below current price. Offering closes Feb 18.

In theory, reverse split is done, offering is done (err - announcement done that is). For those like me, that are in it, and hit badly (-30%) the next week may be a bottom area, and for those looking to get in, you might want to watch for an entry.

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Link: http://www.marketwatch.com/story/dara-biosciences-announces-registered-direct-offering-of-60-million-2014-02-12?reflink=MW_news_stmp

DARA BioSciences Announces Registered Direct Offering of $6.0 Million

RALEIGH, NC, Feb 12, 2014 (Marketwired via COMTEX) -- DARA BioSciences, Inc. DARA -3.80% , an oncology supportive care pharmaceutical company dedicated to providing health care professionals a synergistic portfolio of medicines to help cancer patients adhere to therapy and manage side effects arising from cancer treatment, today announced that on February 11, 2014, DARA BioSciences, Inc. (the "Company") entered into a Securities Purchase Agreement (the "Purchase Agreement") with certain institutional investors providing for the issuance and sale by the Company in a registered direct offering of 2,166,501 shares (the "Shares") of the Company's common stock, par value $0.01 per share, at an offering price of $2.765 per share (the "Share Offering") for gross proceeds of approximately $6.0 million before deducting for placement agent fees and expenses. The Shares are being offered by the Company pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission on March 25, 2011 and declared effective on April 19, 2011. A preliminary and final prospectus supplement and the accompanying prospectus relating to the Share Offering has been filed with the SEC, and a final prospectus supplement relating to the Share Offering will be filed with the SEC and will be available at the SEC's website located at www.sec.gov .

In a concurrent private placement (the "Private Placement" and, together with the Share Offering, the "Offerings"), the Company is selling to purchasers of shares of its common stock in the Share Offering a warrant to purchase one share of our common stock for each share purchased in the Share Offering (collectively, the "Warrants"). Each Warrant will be exercisable at issuance, will have an exercise price of $2.64 per share and will be exercisable for five years.

The Warrants and the shares of the Company's common stock issuable upon the exercise of the Warrants are not being registered under the Securities Act, are not being offered pursuant to the Registration Statement and are being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act of 1933 (the "Securities Act"), and Rule 506(c) promulgated thereunder.

The closing of the Offerings is expected to take place on or about February 18, 2014, subject to customary closing conditions.

The Company estimates that the net proceeds from the Offerings will be approximately $5.5 million. The net proceeds received by the Company from the Offerings will be used for working capital and general corporate purposes, which may include funding commercial activities related to the Company's product portfolio and the Mission Pharmacal products including in connection with the Company's agreements with Mission and Alamo.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (nyse mkt:LTS), acted as the sole placement agent in connection with the Offerings.