NEWTON, Mass.--(BUSINESS WIRE)--Feb. 15, 2006--Pro-Pharmaceuticals, Inc. (Amex: PRW), a developer of novel carbohydrate compounds to enhance the treatment of serious diseases, today announced that it has entered into definitive agreements for a $10 million private placement with institutional investors who purchased Convertible Debentures and Common Stock Purchase Warrants. The Debentures, which mature on January 1, 2008, are to be redeemed in 18 monthly payments of principal beginning August 1, 2006, and bear interest at the rate of 7% per year. The Debentures are convertible into shares of the Company’s common stock at an initial conversion price of $3.35, subject to certain adjustments. The Company may make payments of principal and interest in cash or in shares of its common stock. If payment is in shares, the price per share will be at a 10% discount to any five-day volume weighted average prices for that month.
