PharmaGap Announces Cost Reduction Program To Preserve Asset Value
OTTAWA, Oct. 2, 2012 /CNW/ - PharmaGap Inc. (TSX-V: GAP; OTC.BB: PHRGF) ("PharmaGap" or "the Company") today announced that it is suspending all operations pending completion of the previously announced licensing transaction with Clinical Value Corporation ("CVC") as approved by independent PharmaGap shareholders at its Annual General Meeting on August 3, 2012.
Robert McInnis, President of PharmaGap said "until the transaction with CVC is completed it is important that operating expenses be held to a minimum to focus resources on preserving the assets to be transferred to CVC."'
Mr. Roderick M. Bryden, Chairman of PharmaGap and sole owner of CVC said today that "We continue to meet with potential investors to participate in capital funding for CVC to implement the licensing transaction with PharmaGap. It is likely that a number of weeks will be required to complete this transaction."
In order to reduce cash requirements until the financing of CVC can be secured, the Company placed all employees on temporary layoff status on September 26, 2012, and is reducing the office and lab space leased at 100 Sussex Drive in Ottawa accordingly.
About PharmaGap Inc.
PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. For more information on PharmaGap please visit the Company's website at www.pharmagap.com.
Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent management's current expectations of future events, and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "continues", and similar expressions. Although management believes that expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this news release, PharmaGap will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: results of ongoing product testing and development; regulatory approvals required to complete development of products; ability to manufacture product at quality and scale for human use on an economically sound basis; patient reimbursement by private and public health insurance programs; unintended side effects of products; competitive products; product liability; intellectual property; reliance on key personnel; risks of future legal proceedings; income tax matters; availability and terms of financing; distribution of securities; effect of market interest rates on price of securities, and potential dilution.
Note: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein. This release contains forward looking statements that may not occur or may change materially.
SOURCE: PHARMAGAP INC.For further information:
Robert McInnis, President & CEO
(613) 990-9551 firstname.lastname@example.org