Canguard Pharma Inc. has raised $192,406 (C$255,520)through the private placement of 730,057 shares of commonstock at $0.26 per share. Also sold were 292,023nontransferable warrants to purchase an equivalent number ofshares at $0.38 per share, exercisable until January 20, 1996.All shares were sold through private placement and cannot beresold until January 21, 1995.
As of January 31, Canguard (NASDAQ:CHLTF) hadapproximately 15.4 million shares outstanding. The companyhas about $375,000 in cash, Canguard chairman JohnArmstrong told BioWorld, and a "relatively low" cash burn rate.
Armstrong noted that the company can operate with a smalleramount of capital than many biotech companies because itcontracts out many of its tasks. "We're operating under theconcept of the virtual corporation," he said, as the companymaintains only a small staff and facility. The proceeds from thisfinancing round, in addition to the warrants issued in theoffering, will meet the company's cash needs "for theforseeable future," Armstrong said.
Canguard's lead compound, a sustained release formulation ofsodium valporate for the treatment of epilepsy, is in clinicaldevelopment.
The company raised $324,000 last August and $477,000 lastApril, both in private placements.
-- Karl A. Thiel Associate Editor
(c) 1997 American Health Consultants. All rights reserved.