Biostage Inc. will sell between 500,000 and 1 million shares under a share purchase agreement.
The Holliston, Mass.-based biotechnology company agreed to sell the shares, priced at $3.60 each, to an investor named Du Xiaoyu, who will determine the number of shares to be bought on or before June 29.
Biostage will raise between $1.8 million and $3.6 million through the private placement, which is expected to close in late June or early July.
The company also closed two previously announced, similar placements of $3.6 million in shares.
Additionally, Biostage appointed Hong Yu as president.
Yu was most recently senior vice president responsible for strategic analytics at Bank of America. He previously assisted Biostage with strategic activities.
