Rock Creek Pharmaceuticals, Inc. announced that it expects to receive $20 million in funding from Hudson Bay Capital Management LP, and other investors.

Rock Creek Pharmaceuticals, Inc. (NasdaqCM:RCPI) announced that it entered into a stock purchase agreement for a private placement of senior secured convertible notes due on October 15, 2018 for gross proceeds of $20,000,000 on October 14, 2015. The transaction will include participation from several institutional investors including new investors Alto Opportunity Master Fund, SPC and Hudson Bay Overseas Fund Ltd, a fund managed by Hudson Bay Capital Management LP. Alto Opportunity Master Fund will invest $500,000 in aggregate principal amount of notes.

The notes will be issued at par. The notes carry a fixed coupon of 8% per annum and would mature on October 15, 2018. The notes are convertible into common shares of the company at a fixed conversion price of $1.12 per share.

The company will issue securities pursuant to exemption provided under Regulation D. The transaction is expected to close on or around October 15, 2015. The company will receive $1,000,000 of the proceeds from the sale of the notes at closing of the transaction in unrestricted cash. The remaining $19,000,000 of the proceeds will be deposited into a restricted account from which proceeds will be released over specified time periods and based on the Company meeting certain milestones and conditions.