Published on March 11, 2010 at 8:28 AM
Pro-Pharmaceuticals, Inc. (OTCBB: PRWP) (the “Company”), today
announced that it has closed a $335,000 tranche of a private placement
of up to $6.0 million with 10X Fund, L.P., which is purchasing
unregistered Series B convertible preferred stock and warrants. This
tranche brings the total raised to date from the 10X Fund to
approximately $5.1 million.
At the closing, which occurred on March 8, 2010, the Company issued and
sold 167,500 shares of Series B-2 preferred stock convertible into
670,000 shares of common stock, a Class A-1 and a Class A-2 warrant each
exercisable to purchase 335,000 shares of common stock and a Class B
warrant exercisable to purchase 1,340,000 shares of common stock, for a
gross purchase price of $325,000. Net proceeds were approximately
$322,000.
The Company expects to use the proceeds from the financing for
commercialization development of its lead compound DAVANAT®,
as well as for general corporate purposes.
The Series B Preferred Stock, the Class A-1 Warrants, the Class A-2
Warrants and the Class B Warrants, including the common stock underlying
the Series B Preferred Stock and warrants, have not been registered
under the Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable exemption
from registration requirements.
Source Pro-Pharmaceuticals, Inc.