Pro-Pharmaceuticals lands another $335K in $6M financing

By Mass High Tech staff

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Pro-Pharmaceuticals Inc. continues to nibble away at its planned $6 million private placement with its latest tranche closed at $335,000, backed by 10X Fund LP.

The Newton drug developer has now raised $5.1 million, with 10X Fund buying unregistered Series B convertible preferred stock and warrants. The company said in a press release that it plans to use proceeds from the private placement to commercialize its lead compound, Davanat, a carbohydrate polymer that fights cancer by targeting an area on cancer cells called Galectin receptors, which appear more in cancer cells than normal cells.

The latest tranche had Pro-Pharmaceuticals selling 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.

Pro-Pharmaceuticals (OTCBB: PRWP) last closed a $325,000 tranche in early February. The company has been chipping away at the $6 million round, which began in February 2009 with a $1.8 million tranche.

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