Capnia Inc. said its stockholder Aspire Capital Fund LLC is selling up to 10 million shares at a price to be determined by the prevailing market price for the shares or in negotiated transactions.

Capnia will not receive proceeds from the sale of shares by the selling stockholder. However, the company may receive proceeds of up to $17 million from the sale of common stock to the selling stockholder under a purchase agreement signed Jan. 27.