Pro-Pharmaceuticals announces closing of $335,000 tranche of private placement

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.