Galectin Therapeutics Inc. raised $3 million in a private placement of its common stock.
The company separately closed on an additional sale of its series B-3 preferred stock, resulting in about $1 million of additional proceeds.
In the placement of common stock, one existing investor and a new investor purchased 2,814,230 common shares and received warrants for common stock exercisable at $5.00 per share.
Under a Sept. 22 stock purchase agreement, 10X Fund LP purchased 1,008,000 series B-3 preferred shares, which are convertible into 896,997 common shares, for a purchase price of about $1 million. The fund also received warrants for common stock exercisable at $3.00 per share.
Peter Traber, president, CEO and chief medical officer, said in a statement that proceeds from the private placement will provide funding for the company's clinical programs, particularly a clinical trial that will assess the efficacy of Galectin's lead compound GR-MD-02 in patients with NASH cirrhosis, liver inflammation and damage caused by a buildup of fat in the liver.