Protalex Raises $5.1M in Private Placement
NEW HOPE, Pa., May 31 /PRNewswire-FirstCall/ -- Protalex, Inc. (OTC Bulletin Board: PRTX) announced today that it has raised $5.1 million through a private placement of 2.6 million shares of common stock at $1.95 per share with warrants to purchase approximately 787,000 additional shares. The financing was led by vSpring Capital, with participation of selected institutional and accredited private investors. According to Steven H. Kane, President and CEO of Protalex, "The Company will use the proceeds of the private placement primarily to finance the upcoming Phase I clinical trials for its lead compound, PRTX-100, in Rheumatoid Arthritis and Pemphigus and general working capital purposes." Dr. Dinesh Patel, of vSpring Capital said "We are extremely pleased with the progress that Protalex has made over the past year and look forward to their success in the upcoming clinical trial phase." About Protalex, Inc. Protalex is engaged in the development of a new class of drug for the treatment of Rheumatoid Arthritis, Pemphigus and other autoimmune diseases. The securities offered by Protalex in this private placement 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. Protalex has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issued in this private placement and the shares of common stock issuable upon exercise of the warrants issued in this private placement. About vSpring Capital vSpring is an early-stage venture capital fund focusing on investment opportunities in information technology and life sciences. vSpring capitalizes on the managerial skills and operating experience of its principals to successfully invest in and mentor early stage companies. vSpring has offices in Salt Lake City, Utah and Los Alamos, New Mexico. Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the Company's limited operating history, uncertainty regarding viability and market acceptance of the Company's products, and the Company's dependence on reimbursement by third parties. These factors and others are more fully described in the section entitled "Risks Related to the Company's Business" in the Company's Registration Statement on Form 10-SB (File No. 00028385) as filed with the Securities and Exchange Commission.
SOURCE Protalex, Inc.
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