PharmaGap Receives TSX-V Approval for $550,000 Investment by Dundee Securities; Sale of $1.95 million in Shares and Warrants to Accredited Investors Initiated
Ottawa, Ontario/ May 7, 2007 – PharmaGap Inc. (TSX-V: GAP) ("PharmaGap" or "the Company"), a Canadian biotechnology company developing novel compounds to treat cancer, today announced that it has received approval from the TSX Venture Exchange ("TSX-V") for the investment by Dundee Securities Corporation ("Dundee") of $550,000 in equity securities. The Company first announced the investment by Dundee on May 3, 2007.
Dundee has acquired 2,000,000 common equity units ("Units") and 2,400,000 Series I Preferred Shares ("Series I Shares") from the Company. As a result of the issue the Company now has 21,374,620 common shares outstanding and 2,400,000 Series I Shares outstanding. Dundee owns 9.4% of the common shares outstanding. The securities issued (including the common shares, the warrants and the Series I Shares) will be subject to a hold period of at least four months and one day from May 4, 2007, pursuant to TSX-V policies and to Multilateral Instrument 45-102 – Resale of Securities.
The Company is also offering by way of a private placement up to $1,950,000 of Units to accredited investors at the same price as were issued to Dundee. The Units are being offered at $0.125 per Unit and consist of one common share and one warrant to acquire a common share for a two-year period at $0.165. The sale of securities to accredited investors is set to close on or before June 4, 2007. The Company has received TSX-V conditional acceptance for the purchase of the Units by accredited investors.
Pursuant to an agency agreement between the Company and Dundee, Dundee will be paid a commission of 10% of the aggregate gross proceeds of the private placement and will also receive broker’s warrants in an amount equal to 10% of the number of Units issued in the private placement. The broker’s warrants have an exercise price of $0.165 per common share and a two-year term from date of issue. In connection with today’s announcement, Dundee received a commission payment of $55,000 and 200,000 broker’s warrants, respectively. A selling commission from Dundee is payable to other brokers with orders from accredited investors.
About PharmaGap Inc.
PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel therapeutic compounds for the treatment of cancer. PharmaGap's research platform targets cellular signaling pathways controlled by Protein Kinase C (PKC) isoforms. PharmaGap's lead drug compound, PhGalpha1, is in preclinical development. The Company's strategy is to out-license drug compounds to larger life sciences companies at the preclinical stage. For more information please visit the Company's website at www.pharmagap.com.