RXi Pharmaceuticals Corp., a clinical-stage biotechnology company based in Marlborough, said a Chicago-based investment firm has agreed to purchase up to $20 million in stock to advance research and development activities.
Lincoln Park Capital Fund LLC (LPC) purchased 500,000 shares of common stock at $4 per share when the agreement was executed, an investment of $2 million, according to RXi. LPC has agreed to make an additional $1 million purchase when RXi files for its first investigational drug application with U.S. Food and Drug Administration, and RXi may sell up to $17 million in common stock to RXi at its discretion, over the 30-month term of the agreement.
RXi said it plans to use the proceeds for working capital to support advancement of its ophthalmology franchise and “other general corporate purposes,” according to a statement.
RXi is currently pursuing FDA approval of a post-surgical, anti-scarring drug.
