Azitra (AZTR) said Thursday it has struck a deal to sell about $10.5 million in convertible preferred stock to new and existing healthcare-focused institutional investors.

The deal also includes funding of up to an additional $20.9 million upon exercise of warrants, the clinical-stage firm said. Investors include Stonepine Capital and Nantahala Capital, it added.

Azitra said it plans to use the proceeds for research and development, working capital, and general corporate expenses. It expects to close the transaction March 20.