Chelsea Thera raises $48.9M

Chelsea Therapeutics International says that it has entered into definitive securities purchase agreements with several institutional and accredited investors to raise approximately $48.9 million in a registered direct offering, before placement agent fees and offering expenses. At closing, Chelsea will issue around 7.4 million shares at $6.62, which was the closing price on November 1.

Ridgeback Capital Management was the lead investor in this financing which also included significant participation from a number of other new and existing health care participants. Chelsea intends to use the proceeds to fund the continued clinical development of CH-1504 including Phase II trials in rheumatoid arthritis, initiation of pivotal Phase III trials of droxidopa in neurogenic orthostatic hypotension, expansion of its Droxidopa clinical program into other indications, and general working capital.