DARA BioSciences suspends $10M underwritten public offering

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On May 17, 2010, DARA BioSciences, Inc. (Nasdaq:DARA) issued a press release announcing that it had commenced an underwritten public offering of $10 million of units comprised of shares of common stock and warrants. DARA has decided to indefinitely suspend the offering, effective immediately. Several important factors have influenced this decision. Principally, SurgiVision, Inc, of which DARA is the second largest shareholder after Boston Scientific Corporation (BSX), announced it had received clearance from the Food and Drug Administration (FDA) to market its ClearView System. On June 16, 2010 SurgiVision filed an Amendment to its S-1 Registration Statement containing additional information regarding its planned Initial Public Offering (IPO). In addition, high value licensing transactions in the pharmaceutical industry have accelerated with deals being consummated at earlier stages of development with significant upfront payments. The Board of Directors, management, and company advisors have concluded that given these positive developments and uncertain and volatile market conditions, raising capital at this time would pose unwarranted dilution to our shareholders.

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 DARA BioSciences, Inc.

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