Innovate Biopharmaceuticals Inc., a Raleigh-based clinical stage biotechnology company, raised $5.5 million in debt, according to a Securities and Exchange Commission filing.

Innovate filed the Form D on March 15. The company intends to some of the proceeds as payments of salary.

According to another filing, Atlas Sciences LLC, a Utah limited liability company, can convert the debt into company stock at a price of $3.25 per share.

Innovate focuses on developing novel medicines for autoimmune and inflammatory diseases with unmet needs. Their pipeline includes drug candidates for celiac disease, NASH, Crohn’s, and ulcerative colitis.

In February, the company announced the departure of CEO Christopher Prior to pursue other opportunities. Sandeep Laumas was appointed as Innovate’s CEO.

Laumas said, “Our team remains focused on meeting our business goals of having the first to market treatment for celiac disease and creating long-term value for our shareholders.”

The company will report financial results for the fourth quarter on Monday. The audio webcast will be hosted on Monday, March 18 at 6 p.m. Eastern time.

Innovate’s stock price closed at $2.14, up 1.4 percent, or 3 cents, from its opening price of $2.11.

The form can be found here.