Chelsea Thera closed $21.5M placement

North Carolina, USA-based Chelsea Therapeutics International says it has completed a private placement of approximately 7.2 million shares of its common stock to institutional and other accredited investors, resulting in gross proceeds of approximately $21.5 million. This reflected the maximum authorized amount, including a $6.5 million overallotment. The investors in the private placement also received five-year warrants to purchase around 2.2 million additional shares at an exercise price of $4.20 each. Paramount BioCapital acted as sole placement agent.

Proceeds will fund CH-1504 development

The proceeds will be used primarily to fund the continued clinical development of Chelsea's patented CH-1504 drug, preclinical assessment of additional antifolates in its pipeline, licensing additional clinical drug candidates, working capital and general corporate purposes.