OTTAWA, Sept. 19 /CNW Telbec/ - PharmaGap Inc. (TSX-V: GAP) ("PharmaGap"
or "the Company"), a Canadian biotechnology company developing novel compounds
to treat cancer, today announced that it has agreed on revised terms for the
extension of its Convertible Secured Debentures which matured on August 26,
2007 (the "Debentures") and are held by SC Stormont Holdings Inc.
("Stormont"). The agreement previously announced on August 31, 2007 with all
holders of Debentures to extend the maturity date to February 26, 2009 was not
fully approved by the TSX Venture Exchange (the "TSX-V") as it pertains to
Debentures held by Stormont, and therefore cannot be implemented in the manner
approved by the Board of PharmaGap.
The TSX-V has approved the terms of the extension for Debentures held by
arm's length holders, including the reduction in conversion price from Thirty
cents ($0.30) to Seventeen and One-Half cents ($0.175), and a reduction in
warrant pricing from Forty-Five cents ($0.45) to Twenty-Six and One-Quarter
cents ($0.2625). However, the TSX-V has advised it cannot approve the issuance
of warrants on conversion of the Debentures to Stormont, which is a related
party to PharmaGap.
The TSX-V has indicated that its policies permit, and Stormont has agreed
to accept, revised terms of the Debentures held by it providing for a
reduction in the conversion price to Thirteen Cents ($0.13), however no
warrants will be provided on conversion of the Debentures. Previously,
warrants were granted on conversion of the Debentures on a 1:1 basis with
shares, at an exercise price of Forty-Five ($0.45) and Forty-Eight and
Stormont has agreed to enter into a forbearance agreement with PharmaGap
in respect of the Debentures in order to provide PharmaGap and Stormont with
sufficient time to implement the revised transaction described above. The
forbearance agreement suspends enforcement of security in respect of the
Debentures until October 15, 2007, at which time the revised transaction is
expected to be complete.
The revise terms with Stormont are subject to final approval by the
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 signaling
pathways controlled by protein kinase C (PKC) isoforms. PharmaGap's lead drug
compound, PhGalpha1, 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 the Company's website at
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)