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PharmaGap announces completion of $861,920 private placement of shares and warrants

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^{Published in Health and Fitness on Wednesday, June 17th 2009 at 5:03 GMT, Last Modified on 2009-06-17 05:03:44 by Market Wire}  

 OTTAWA, June 17 /CNW Telbec/ - PharmaGap Inc. (TSX-V: GAP) ("PharmaGap" or "the Company") today announced 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 $0.16, for total gross proceeds of $861,920. Warrants have a two year term and an exercise price of $0.20 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 ("TSX-V"), 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. ("Capital Street Group"), 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% 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% of gross proceeds) plus 275,695 warrants for finders fees for its distribution group. Northern Securities was paid $16,800 (1.9% 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. 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. The Company's strategy is to out-license drug compounds to larger life sciences companies at the preclinical stage. For more information please visit [ 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: Robert McInnis, President & CEO, (613) 990-9551 [ bmcinnis@pharmagap.com ]