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Pro-Pharmaceuticals Private Placement (OTC:PRWP)

By David Robinson on 11/05/2009 – 8:45 am PSTLeave a Comment

Pro-Pharmaceuticals, Inc. (OTC:PRWP) has announced that they have closed a US$310,000 tranche of a private placement for up to US$6.0 million with 10X Fund, L.P. which is purchasing their unregistered Series B convertible preferred stocks and warrants. This tranche brings the total raised to date from the 10X Fund to approximately US$4.1 million. Pro-Pharmaceuticals is one of the leading companies that is engaged in the discovery, development and commercialization of carbohydrate therapeutics for the advanced treatment of patients suffering from cancer and fibrosis. Other products that are in the pipeline focus more on decreasing the toxicity of chemotherapy drugs.

The Company has decided to use the proceeds from the financing of partnership development and approval in countries with their own approval process as well as for general corporate purposes. At the closing of the tranche, the Company issued and sold 155,000 shares of Series B-2 preferred stock convertible into 620,000 shares of common stock, a Class A-1 and Class A-2 warrant each exercisable to purchase 310,000 shares of common stock and Class B warrant exercisable to purchase 1,240,000 shares of common stock for a gross purchase price of US$310,000 and the net proceeds were US$296,000 approximately. The Company also announced that Series B Preferred Stock, Class A-1 and A-2 warrants and Class B warrants are not registered and therefore cannot be sold or offered.

Currently, DAVANAT is the leading product candidate of Pro-Pharmaceuticals Inc, which is a carbohydrate polymer that targets galectin receptors that are over-expressed on the cancer cell. As per the research galectin affects the development of cell and plays important role in cancer, including tumor cell survival, angiogenesis and tumor metastasis. So far DAVANAT has been administered on 100 patients suffering from cancer and the data from Phase 2 trial showed that it is effective in reducing the side effects of the chemotherapy.

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