Pro-Pharmaceuticals, Inc. (OTCBB: PRWP) (the "Company"), today announced that it has closed the $570,000 final tranche to complete a $6 million private placement with 10X Fund, L.P., which is purchasing unregistered Series B convertible preferred stock and warrants.
“On behalf of our shareholders, our board of directors, and our employees, I would like to thank the 10X Fund for supporting the Company during what can only be described as challenging economic times”
At the 10X Fund closing, which occurred on May 10, 2010, the Company issued and sold 285,000 shares of Series B-2 preferred stock convertible into 1,140,000 shares of common stock, a Class A-1 and a Class A-2 warrant each exercisable to purchase 570,000 shares of common stock and a Class B warrant exercisable to purchase 2,280,000 shares of common stock, for a gross purchase price of $570,000. Net proceeds were approximately $536,000.
"On behalf of our shareholders, our board of directors, and our employees, I would like to thank the 10X Fund for supporting the Company during what can only be described as challenging economic times," said Theodore Zucconi, Chief Executive Officer, Pro-Pharmaceuticals. "The raise from 10X Fund, together with our cash on hand, will enable us to fund operations into October and allow us to move forward with our plans to commercialize DAVANAT®. We will be able to complete the design of our Phase III trial and plan to initiate it later this year. We also remain committed to our Latin American initiative and believe that we will have an approval in one South American country this year."
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.
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