OTTAWA, Aug. 22 /CNW Telbec/ - PharmaGap Inc. (TSX-V: GAP) ("PharmaGap"
or "the Company") today announced it has completed its previously announced
offering of brokered equity securities for gross proceeds totaling $1,094,361.
Investors purchased from the Company a total of 7,295,740 equity units (the
"Units") at $0.15 per Unit, with each Unit consisting of one (1) common share
and one (1) two-year purchase warrant at $0.20 per common share. Net proceeds
from the brokered offering totaled $919,753. Additionally 729,574
broker-warrants were issued to the Agents. Proceeds from this offering will be
used to further clinical development of the Company's novel cancer compounds,
business development and for general corporate purposes. Following the
closing, the total common shares issued and outstanding in the Company are
45,402,333. The issue of units is subject to final approval by the TSX Venture
The brokered offering of Units was first announced on June 19, 2008 and
subsequently updated on August 14, 2008. The Company's financial advisors,
Dundee Securities Corporation and Wellington West Capital Inc. (the "Agents"),
with Capital Street Group of Vancouver acting as a Special Selling Group
member, placed 7,295,740 Units with investors for gross aggregate proceeds of
The Company expects to complete the $1,555,395 non-brokered private
placement with SC Stormont Holdings Inc. ("Stormont"), as announced on August
14, 2008, within the next few weeks subject to completion of documentation and
approval of the TSX-V.
PharmaGap is also very pleased to announce that it has finalized the
enrollment for its Clinical Development Group, an advisory team of experienced
drug development professionals that has been tasked by the Company to direct
and implement the program required to receive regulatory approval by the U.S.
Food and Drug Administration to initiate human testing of the Company's lead
cancer drug compound (PhG-alpha-1). The Company anticipates filing an
application to initiate human testing by 2010.
As first announced on June 6, 2008 the Clinical Development Group will be
headed up by Dr. David Barnes, an experienced drug development and regulatory
affairs consultant based in Ottawa and who will liaise closely with
PharmaGap's management and scientific team lead by Dr. Jenny Phipps. Other
members of the Clinical Development Group are:
- Dr. Doug Cowart, Baltimore, MD - pharmacology
- Dr. Gary Schwartz, New York, NY - clinical oncology
- Dr. Russell Blacher, San Francisco, CA - peptide chemistry
- Dr. John Dillberger, Nashville, IN - toxicology
- Dr. Doug McNair, Kansas City, KN - biomedical statistics
- Dr. Peter Tomlinson, Toronto, ON - oncology
Mr. Robert McInnis, President & CEO of PharmaGap, commented, "I am very
pleased to announce the close of the public portion of our equity financing.
Despite a very challenging financing environment in Canada over the past two
months following the announcement of the equity offering, we were gratified by
the investor support we received. With proceeds now in place, we are ramping
up our newly formed Clinical Development Team so as to accelerate the steps
necessary to receive eventual regulatory approval to test our lead cancer drug
compound in humans. I am delighted with the make-up of this world-class drug
development team and I believe it serves as confirmation of the value
potential that we see in our drug program."
During the course of the clinical development program, the Company will
continue to develop its pipeline of future drug compounds, and to generate
business development opportunities aimed at securing a development
partnership, licensing or similar arrangement for PhG-alpha-1 with an
established pharmaceutical or biotech company aimed at bringing both
additional financial and drug development depth to the program.
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 and targets PKC alpha.
The Company's strategy is to out-license drug compounds to larger life
sciences companies at the preclinical stage. For more information on PharmaGap
please visit the Company's website at 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. Unless
otherwise required by applicable securities laws, PharmaGap disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
For further information:
For further information: Robert McInnis, President & CEO, (613)