Ottawa, Ontario/December 2, 2009 – PharmaGap Inc. (TSX-V: GAP; OTC.BB: PHRGF) (“PharmaGap” or “the Company”) today wishes to provide an update on certain corporate initiatives currently underway.
Scientific results from recent testing of the Company’s lead cancer drug compound (GAP-107B8) have been submitted to the American Association of Cancer Research (AACR) for presentation at the AACR’s annual meeting in April 2010 in Washington, DC. The AACR is North America’s premier conference for preclinical cancer research and treatment, with over 17,000 delegates in attendance. More information is available at www.aacr.org.
As part of ongoing business development activities, PharmaGap will be attending BioPartnering North America in Vancouver, British Columbia January 24 – 26, 2009. This conference is one of the premier global life sciences business conferences, attracting hundreds of biotechnology and pharmaceutical companies from around the world interested in partnering, licensing and codevelopment activities. More information is available at www.techvision.com/bpn/.
The Company also confirms that it is to meet in December with staff at the U.S. National Cancer Institute (“NCI”) in Bethesda, MD in order to review the data and comparative results generated by the NCI in its recent single and five dose testing of GAP-107B8. The NCI is an institute of the National Institutes of Health, the primary U.S. Federal Agency for conducting and supporting medical research. The NCI has a mandate to work with and assist industry and academia to develop novel drug compounds that could potentially make a material difference in the “war against cancer”. Management anticipates that discussions with NCI will be ongoing as the Company’s development of GAP-107B8 continues, and significant outcomes of these discussions, and additional data from this testing program, will be announced as they become known and are fully analyzed by the Company. More information is available at www.cancer.gov. PharmaGap today also announces it has completed a $333,280 non-brokered private placement of equity units (“Units”) with arms-length accredited investors. Purchasers acquired 2,083,000 Units at a price of $0.16 per Unit. Each Unit consists of one (1) common share and one (1) twoyear purchase warrant to acquire an additional common share at an exercise price of $0.20 per share. The common shares issued 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 are to be used to fund the Company’s drug development program and for general working capital purposes. In connection with the financing, Northern Securities Inc. has received a fee of $26,662 and 166,640 broker warrants, which also have a two-year term and an exercise price of $0.20 per share. As a result of the Units financing the Company will have 91.8 million shares outstanding.
PharmaGap’s largest shareholder, SC Stormont Holdings Inc. (“Stormont”), has entered into common share lending agreements with purchasers of the Units whereby Stormont will loan freely tradable shares for a four month period. Stormont has not disposed or sold any of its shareholdings under these agreements and all shares loaned to arms-length investors will be returned to Stormont upon the termination of these agreements in four months. Similar share lending agreements between Stormont and investors in the Company’s private placements completed in June and July 2009 were recently satisfied in full, with all common shares returned to Stormont following completion of the respective four month hold periods. The lending of shares requires the filing by Stormont of a Form 45-102F1 (available at www.sedar.com).
About PharmaGap Inc.
PharmaGap Inc. (TSX-V: GAP; OTC.BB: PHRGF), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. PharmaGap’s GAP-107B8 is a novel peptide drug designed to inhibit the activity of protein kinases, cell signalling enzymes implicated in certain types and stages of cancer. For more information please visit www.pharmagap.com.