Pro-Pharmaceuticals Inc. is engaged in the discovery, development and commercialization of therapeutic compounds for advanced treatment of cancer and fibrosis. The company today announced the closing of the $750,000 final tranche of its $6 million private placement with 10X Fund L.P., which is purchasing unregistered Series B convertible preferred stock and warrants.
Pro-Pharmaceuticals 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. The company reported net proceeds of approximately $536,000.
Theodore Zucconi, CEO of Pro-Pharmaceuticals, thanked 10X Fund for its financial backing and assistance, and said the funds will allow the company to continue its plans to commercialize DAVANAT, Pro-Pharmaceuticals’ lead product candidate.
“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,” Zucconi stated in the press release. “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(R).”
Pro-Pharmaceuticals has completed phase II trials for DAVANAT, and the proceeds from today’s announced private placement will fuel the company to conduct the next phase in the coming year.
“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,” Zucconi stated.
According to the press release, 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.