Kindred Biosciences Inc. said it closed the exercise of the underwriters' option to buy 314,000 shares, priced at $7.50 per share, as part of a public offering that initially closed July 17.

The company raised additional proceeds of about $2.3 million from the overallotment option, raising the offering's gross proceeds to about $24.8 million.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc., acted as sole book-running manager and Aegis Capital Corp. acted as lead manager.