Bermuda-based Socius CG II Ltd has struck a $5 million deal to buy securities from Bionovo Inc, a pharmaceutical company focused on the discovery and development of treatments for women’s health and cancer.“In a challenging economic environment, we are pleased to have the necessary financial resources to continue the development of our drug candidate, Menerba,” said Isaac Cohen, OMD, Bionovo’s chairman and CEO.“With this funding, we will continue the phase three clinical trial for Menerba, our drug candidate for the treatment of menopausal hot flashes. We also will be able to continue discussions with strategic partners to provide a stronger financial base.”Under the terms of the agreement, Bionovo, over a term of two years and subject to certain closing conditions and limitations, can sell up to a total of $5 million of redeemable series A preferred stock to Socius in tranches.The preferred stock will accrue a 10 percent dividend per annum from the date of issuance. In addition to the preferred stock, Socius will receive warrants to purchase shares of the company’s common stock valued at 35 percent of the preferred stock amount. The exercise price of the warrants will equal the closing bid price of Bionovo’s common stock on the preceding day.