PharmaGap to raise approximately $4.5 million in public offering of equity securities



    OTTAWA, June 19 /CNW Telbec/ - 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 of 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 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.




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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