Stormont facilitates placement and securities lending agreements.
18 November 2010 Toronto
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PharmaGap Inc. announced it has completed a private offering of equity units (the "Units") in the amount of $572,000. A total of 4,085,714 units were issued at a price of $0.14 per Unit. Each Unit consists of one common share and one warrant to purchase a common share at an exercise price of $0.25 per share for the first two years and $0.35 per share for the third year of the three year warrant term. The closing of this private placement is subject to the approval of the TSX Venture Exchange and the shares and warrants issued pursuant to the private placement are restricted from trading for four months from the date of closing. The press release issued earlier today stated an incorrect issue price and number of units.
In connection with this private placement, cash finder's fees in the amount of $36,375 will be paid to an individual dealing at arm's length to PharmaGap.
In order to facilitate the placement, Stormont has agreed with the individual investors to purchase from the investors the shares issued in the placement, at the issue price, on June 30, 2011. The Stormont purchase agreement shall lapse in the event the PharmaGap common shares trade above $0.20 per share for 20 consecutive trading days. Stormont has also agreed to enter into Securities Lending Agreements with each of the investors to provide free-trading shares in exchange for shares acquired in this placement which are restricted from trading for a period of four months from the issue date.
Mr. Roderick M. Bryden, Chairman of the Company and of Stormont, commented "I have great confidence in the value of PharmaGap and its drug program, and am very pleased to be able to facilitate this placement."
In connection with this private placement, cash finder's fees in the amount of $36,375 will be paid to an individual dealing at arm's length to PharmaGap.
In order to facilitate the placement, Stormont has agreed with the individual investors to purchase from the investors the shares issued in the placement, at the issue price, on June 30, 2011. The Stormont purchase agreement shall lapse in the event the PharmaGap common shares trade above $0.20 per share for 20 consecutive trading days. Stormont has also agreed to enter into Securities Lending Agreements with each of the investors to provide free-trading shares in exchange for shares acquired in this placement which are restricted from trading for a period of four months from the issue date.
Mr. Roderick M. Bryden, Chairman of the Company and of Stormont, commented "I have great confidence in the value of PharmaGap and its drug program, and am very pleased to be able to facilitate this placement."
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