Rexahn Pharmaceuticals Inc. started a registered direct offering of 5.77 million units at $1.30 apiece to raise $7.5 million in gross proceeds.

Each unit in the offering will consist of 1 common share and a warrant to purchase a common share. The holders can exercise the warrants for $1.67 per share six months after issuance and the warrants will expire after five years.

The Rockville, Md.-based biotechnology company plans to use the net proceeds to fund the development of its pancreatic cancer treatment RX-3117 and tumor reduction therapy RX-5902, as well as working capital and general corporate purposes.

The offering is expected to close by Oct. 19.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

Rexahn Pharmaceuticals develops cancer treatments. Its products RX-3117 and RX-5902 are undergoing phase 2 trials for the treatment of metastatic pancreatic cancer, advanced bladder cancer and triple negative breast cancer.