Halifax-based Sona Nanotech Inc. has raised $2.53 million through an oversubscribed private placement to fund further development of its Targeted Hyperthermia Therapy oncology treatment.

The company, whose shares trade on the Canadian Securites Exchange, announced Aug. 10 that it had closed the financing with the issuance of 8,423,372 common shares at 30 cents per share. Sona had originally announced July 31 that it planned to raise up to $2.4 million through the sale of up to eight million shares.

The additional shares increased the amount raised above the original target by about $127,000.

Sona said it plans to use the net proceeds to advance studies supporting the clinical development of its THT treatment, as well as to continue research and development and fund general working capital.

THT is Sona's experimental cancer treatment technology. The company has been developing a system intended to use targeted heat to treat tumours.

The financing included participation by company directors, who subscribed for a total of 300,000 shares. Sona classified the participation as related-party transactions under Canadian securities regulations.

The company said it relied on exemptions from formal valuation and minority shareholder approval requirements because the value of the transactions involving the directors did not exceed 25 per cent of Sona's market capitalization.

The company has been working on THT as an oncology treatment and says the financing will support studies needed for its clinical advancement. The July 31 announcement said the financing was subject to customary conditions and approval from the Canadian Securities Exchange.

Sona shares rose 1.5 percent on Monday to close at 35 cents, giving it a market capitalization of $42.5 million.