Chemaphor Inc.

Chemaphor Inc.

October 23, 2009 16:00 ET

Chemaphor Inc. Raises Funds in Private Placement

OTTAWA, ONTARIO--(Marketwire - Oct. 23, 2009) - Chemaphor Inc. (TSX VENTURE:CFR), today announced that it has raised gross proceeds of $1,264,877.55 pursuant to the private placement announced on September 28, 2009.

Chemaphor has issued 8,432,517 common shares and an equal number of common share purchase warrants. Each warrant entitles the holder to acquire one common share of Chemaphor at an additional purchase price of $0.20 per share at any time up to October 23, 2014.

Chemaphor used the services of agents in connection with the placement. For such services agents received, in the aggregate, cash commissions of $101,487.75 and 843,251 warrants. The warrants issued to agents have the same terms as the warrants issued to subscribers in the private placement except that the exercise price is $0.15 per common share.

As previously announced, prior to the closing of the private placement certain insiders of Chemaphor participated in a sale of common shares of Chemaphor to third parties and invested those proceeds in the private placement described above. Before these transactions Chemaphor's President Graham Burton and his spouse held a total of 2,383,108 common shares and 295,000 warrants and following these transactions they hold 2,234,675 common shares and 1,614,279 warrants. Before these transactions Chemaphor's Chairman David Hankinson held a total of 141,022 common shares and following these transactions he holds 126,562 common shares and 80,152 warrants. Before these transactions Chemaphor's Chief Scientific Officer Janusz Daroszewski and his spouse held a total of 2,088,108 common shares and following these transactions they hold 1,903,414 common shares and 1,068,170 warrants. Chandra Panchal, a director of the Corporation, also participated in the private placement acquiring 100,000 common shares and 100,000 warrants bringing his total holdings to 162,500 common shares and 100,000 warrants. Dr. Panchal did not participate in the sale transaction preceding the private placement.

The securities issued under this private placement are subject to restrictions on transfer, including a hold period ending on February 24, 2010.

The net proceeds of the proposed offering will be used to fund working capital and research and development expenditures and for general corporate purposes.

The private placement remains subject to final TSX Venture Exchange approval.

About Chemaphor

Chemaphor Inc. ( uses its core expertise in organic chemistry to develop premium products for the animal health, skin care cosmetics, pharmaceutical and specialty chemical markets. Chemaphor's focus is on two proprietary products, a non-pharmaceutical product OxBC, and a lead cancer drug compound OCL-1. Chemaphor's goal is to fully exploit its proprietary platform of carotenoid oxidation compounds by finding recognized partners to commercialize its products in multiple, large markets.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Chemaphor Inc.
    Dr. Graham Burton
    Evolution Group Inc.
    Toll Free: 866-703-4887
    514-906-2428 (FAX)