Viracta Therapeutics Inc. completed the initial closing of a series B preferred financing round of up to $18.4 million.

NantKwest Inc. led the funding round. Other participants included new investor Wicklow Capital and Viracta founding investors Latterell Venture Partners and Forward Ventures.

Viracta intends to use proceeds to advance phase 2 studies of VRx-3996 to treat patients with Epstein Barr virus-associated malignancies via Viracta's proprietary viral gene activation therapeutic approach.

The company also granted NantKwest an exclusive license to the drug candidate for use in combination with NantKwest's platform of natural killer cell therapies.

NantKwest Chairman and CEO Patrick Soon-Shiong will join Viracta's board as vice chairman.