By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

A publicly traded biotechnology company in Buffalo is selling 1.4 million shares of common stock to an institutional investor.

Cleveland BioLabs Inc. announced Dec. 27 that it would place the shares for sale at $5.99 per share. The company, which develops biodefense, tissue protection and cancer-treatment drugs, said it estimates that net proceeds from the sale will total roughly $7.73 million. It plans to spend the money on "general corporate purposes" such as development of the existing drug portfolio and working capital.

The company said it plans to invest the proceeds in short-term, interest-bearing, investment-grade securities or money-market obligations.

HFP Capital Markets LLC and Rodman & Renshaw LLC are acting as placement agents for the sale. Shares were expected to be delivered Dec. 29.

Cleveland BioLabs, founded in 2003 and located in Buffalo in 2007, secured a $45 million contract earlier this year from the U.S. Department of Defense to develop and stockpile a drug that treats radiation poisoning. It received Fast Track status from the U.S. Food and Drug Administration, as well as "orphan drug status" from the FDA.