Spacedev Inc. raised gross proceeds of about $5.2 million through the sale of convertible preferred stock and warrants to a small syndicate of new and existing institutional investors, the company announced.

The proceeds will be used to pay certain expenses related to Spacedev’s acquisition of Starsys Research Corp., including cash consideration to Starsys shareholders and the repayment of Starsys debt, as well as provide working capital for the combined company.

Spacedev agreed in October to pay $9 million in cash and stock for Starsys, as well as pay off $6.4 million in debt and forgive a $1.2 million loan. Shareholders of both companies are scheduled to vote on the deal Jan. 30, and if approved, the acquisition should be completed in early February.