PharmaGap fka GAP

[Ed Monton]

PharmaGap to raise $861,920 to advance drug compounds

2009-06-17 08:17 ET - News Release

Mr. Robert McInnis reports

PHARMAGAP ANNOUNCES COMPLETION OF $861,920 PRIVATE PLACEMENT OF SHARES AND WARRANTS

PharmaGap Inc. has arranged 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 16 cents, for total proceeds of $861,920. Warrants have a two-year term and an exercise price of 20 cents 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, 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., 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 per cent 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 per cent of gross proceeds) plus 275,695 warrants for finders fees for its distribution group. Northern Securities was paid $16,800 (1.9 per cent 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.