OTTAWA, July 16 /CNW Telbec/ - PharmaGap Inc. (TSX-V: GAP) ("PharmaGap"
or "the Company") today announced completion of a non-brokered private
placement financing of 717,000 equity units, each unit consisting of one
common share and one warrant to purchase one common share (the "Private
The price per unit was $0.16, for total gross proceeds of $114,720.
Warrants have a two year term and an exercise price of $0.20 per share. These
terms mirror the private placement announced on June 17, 2009 and the two
private placements combined resulted in approximately $976,000 of equity
financing. Proceeds from this Private Placement will be used to further
advance PharmaGap's portfolio of drug compounds and for general working
capital. The shares issued pursuant to the Private Placement and subsequent
warrant exercises are subject to a four month restriction from trading on the
TSX-Venture Exchange ("TSX-V") in accordance with TSX-V rules and regulations
for equity private placements. The Private Placement has been filed under the
TSX-V Expedited Private Placement Filing System.
Capital Street Group Investment Services Inc. was paid a cash fee for
advisory and structuring services for the Private Placement of $8,317 and
48,397 warrants on the same terms as the Private Placement. Northern
Securities Inc. was paid $8,030 plus 50,190 warrants on the same terms as the
Private Placement as a finders fees.
The Company also advises that the agreement with the National Research
Council of Canada ("NRC") to convert $215,201 owed by the Company to the NRC
into common shares at a price of $0.15 per common share, as previously
announced on June 23, 2009, has not been completed, pending receipt of final
approval to the transaction by the NRC's legal and financial services staff.
The transaction as announced on June 23, 2009 has been approved by the TSX-V.
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 signalling
pathways controlled by Protein Kinase C (PKC) isoforms. PharmaGap's lead drug
compound, PhG-alpha-1, 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 www.pharmagap.com.Note: The TSX-Venture Exchange does not accept 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.
For further information: Robert McInnis, President & CEO, (613)