PharmaGap announces completion of $861,920 private placement of shares and warrants



    OTTAWA, June 17 /CNW Telbec/ - PharmaGap Inc. (TSX-V: GAP) ("PharmaGap"
or "the Company") today announced a non-brokered Private Placement financing
of 5,387,000 equity units consisting of common shares and warrants to purchase
common shares. The price per unit was $0.16, for total gross proceeds of
$861,920. Warrants have a two year term and an exercise price of $0.20 per
share. The shares issued pursuant to the Private Placement and subsequent
warrant exercise 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.
    Proceeds from this Private Placement will be used to further advance
PharmaGap's portfolio of drug compounds, for investor relations activities,
and for general working capital.
    PharmaGap has engaged Capital Street Group Investment Services Inc.
("Capital Street Group"), a Limited Market Dealer registered with the Ontario
Securities Commission, to act as its lead broker for this offering.
    Capital Street Group was paid a cash fee for advisory and structuring
services equal to 6.75% of the gross proceeds, which amounts to $58,180, and
363,622 warrants on the same terms as the Private Placement. Capital Street
Group was also paid a total of $48,154 (5.6% of gross proceeds) plus 275,695
warrants for finders fees for its distribution group. Northern Securities was
paid $16,800 (1.9% of gross proceeds) plus 105,000 warrants as finders fees.
    The Private Placement has been filed under the TSX-V Expedited Private
Placement Filing System.

    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:

For further information: Robert McInnis, President & CEO, (613) 990-9551
bmcinnis@pharmagap.com

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PharmaGap Inc.

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