Ann Arbor-based Adeona Pharmaceuticals Inc. (AMEX: AEN) said Thursday that it had an agreement for the sale of 1,688,782 shares of its common stock at $2.0725 per share to a new institutional investor in a registered direct offering for $3.5 million in gross proceeds.

The investor will also receive warrants to purchase approximately 844,391 shares of common stock at an exercise price of $2.0725 per share. The warrants are exercisable upon issuance for a period of 13 months from the closing date. If exercised for cash, the warrants are expected to generate up to an additional $1.75 million in proceeds to Adeona.

READ MORE: Detroit Tourism Seeks Rebound After Year Lost To Pandemic

“In addition to funding the continued development of our reaZin zinc-based medical food product candidate for Alzheimer’s disease and our Trimesta drug product candidate for the treatment of multiple sclerosis, this financing will also allow us to explore new opportunities,” said Adeona chairman and CEO James S. Kuo, M.D.

READ MORE: HFH 'Grub With Gratitude' Rewards Healthcare Workers, While Supporting Local Restaurants

The offering is expected to close on or before April 11, subject to customary closing conditions, including approval by the NYSE AMEX. The net proceeds of approximately $3.25 million will be used for general corporate purposes, including conducting operations and advancing clinical development programs.

MORE NEWS: Stimulus Check Latest: Is A Fourth Relief Payment Coming?

The shares and warrants are being offered in a registered direct offering under the Company’s effective shelf registration statement previously filed on Form S-3 with the Securities and Exchange Commission. This offering will be made by means of a prospectus supplement and the accompanying base prospectus, copies of which may be obtained, when available, from www.sec.gov.