PharmaGap Inc.
TSX VENTURE : GAP
OTC Bulletin Board : PHRGF

PharmaGap Inc.

September 14, 2010 09:02 ET

PharmaGap Announces Completion of Private Placement

OTTAWA, ONTARIO--(Marketwire - Sept. 14, 2010) - PharmaGap Inc. (TSX VENTURE:GAP)(OTCBB:PHRGF) ("PharmaGap" or "the Company") announced today that it has completed the second tranche of an offering of equity units (the "Units"). A total of up to 16,666,667 Units were made available to subscribers at the offering price of $0.18. Each Unit consists of one common share and one warrant to purchase a common share at an exercise price of $0.25 for the first two years and $0.35 for the third year of the three year warrant term. PharmaGap announced the first closing of the private placement (which occurred on August 27, 2010) in a news release dated August 30, 2010.

The second closing is in the amount of $304,278 being 1,690,433 Units, to accredited investors, and is subject to final TSX-V approval.

In connection with this second closing of the private placement, cash finder's fees and broker warrants will be paid to Capital Street Group ($9,128 cash fees and 50,712 broker warrants), to Northern Securities ($630 cash fees and 3,500 broker warrants) to Canaccord Genuity Corp. ($7,649 cash fees and 42,498 broker warrants), and to Wellington West Financial Inc. ($13,020 cash fees and 72,333 broker warrants. Broker warrants are issued on the same terms and conditions as the warrants included in the Units.

For the first and second closings combined, a total of 4,429,750 Equity Units were issued for total gross proceeds of $797,355. For the combined closings, cash finder's fees and broker warrants have been or will be paid to Capital Street Group ($30,612 cash fees and 170,068 broker warrants), to Northern Securities ($10,458 cash fees and 58,100 broker warrants), to Canaccord Genuity Corp. ($14,934 cash fees and 82,972 broker warrants), and to Wellington West Financial Inc. ($13,020 cash fees and 72,333 broker warrants).

The Units and broker warrants issued pursuant to the Private Placement are subject to a trading restriction for a period of four months and one day from the respective dates of closing.

With the second closing, the private placement initially announced on August 11, 2010 has now been completed and no further Units will be issued pursuant to this placement.

About PharmaGap Inc.

PharmaGap Inc. (TSX VENTURE:GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. PharmaGap's GAP-107B8 is a novel peptide drug that has been shown to be highly cytotoxic to numerous cancer types, including chemo-resistant cancers, in vitro. For more information on PharmaGap please visit the Company's website at www.pharmagap.com.

Note: Neither the 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. No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein. This release contains forward looking statements that may not occur or may change materially.

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