PharmaGap to Raise Approximately $4.5 Million in Public Offering of Equity Securities
June 19, 2008 – PharmaGap Inc. (TSX-V: GAP) (“PharmaGap” or “the Company”) today announced that it has filed a preliminary short form prospectus in connection with an agreement entered into with Dundee Securities Corporation and Wellington West Capital Inc. (the “Agents”) to raise gross proceeds of approximately $4.5 million (the “Offering”). The Agents, acting as co-leads, have invited Capital Street Group of Vancouver, a Limited Market Dealer, to join as Special Selling Group Member.
The Company is selling equity units consisting of common shares plus common share purchase warrants (the “Units”). The Company has agreed to pay the Agents a selling concession consisting of 10% of proceeds raised, along with broker warrants equal to 10% of the Units issued.
The Company has granted the Agents an option to purchase additional Units, equal to 15% of the Offering, for purposes of covering over-allotments and for market stabilization purposes. The option can be exercised in whole or in part at any time over a period of 30 days following the closing of the Offering, which is expected to occur on or before July 18, 2008. Closing of the Offering is also subject to receipt of all necessary regulatory and TSX-Venture Exchange approvals.
Net proceeds from the Offering will be used primarily to complete studies required to garner regulatory approval in the U.S. and Canada to begin human clinical trials of the Company’s lead drug for cancer treatment, PhG-alpha-1, a novel peptide inhibitor of protein kinase C alpha. In addition, proceeds will also fund continued development of the Company’s drug pipeline, for development of licensing and partnering relationships, and for general corporate and working capital purposes.
The preliminary prospectus is available on SEDAR (www.sedar.com). Copies of the preliminary prospectus are also available from Dundee Securities Corporation and Wellington West Capital Inc.
The Units being offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent regulation or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale 0f the securities in any State in which the offer, solicitation or sale would be unlawful.
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.