Mar. 23--Cleveland BioLabs has raised another $2.9 million, before fees, by selling convertible preferred stock to investors, the Buffalo-based biotechnology company said today.

The private placement stock sale is in addition to the $1.25 million the company raised last month in a similar offering, bringing the total proceeds raised by the company to $3.8 million after deducting fees and expenses associated with the offering.

Cleveland BioLabs said it plans to use the proceeds from the offering, which will continue through Friday, to increase its working capital as it continues with testing on the drug it is developing to protect humans against radiation sickness, as well as other new drugs.

drobinson@buffnews.com

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