Wound dressing device maker Alliqua closed a $3 million equity financing round, largely backed by an insider group of board members and executives.
Alliqua drummed up the cash over the course of 3 months through sale of common stock, according to a company statement. Accredited investors paid 81¢ per share for equity, coupled with a warrant to purchase an additional share at 97¢ apiece.
The 1st million sold in April and May and the other $2 million, raised in late June, came from company affiliates. The largest investment outside the company came from Summer Street Research Partners.
The New York, N.Y.-based company plans to use part of the new fund for its SilverSeal dressing, a product that Alliqua said can reduce complications and scarring after surgery. Alliqua touted a recent study showing improved healing time for ankle surgery patients treated with SilverSeal.
The remaining funds will go to the company’s other wound dressing product and its transdermal drug delivery platform.
"I believe that the substantial financial commitment on the part of the executives and board members who contributed to this financing round is indicative of our commitment to the success of Alliqua as well as our belief in the vast commercial potential we all believe exists in our technology," said CEO David Johnson in prepared remarks.