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
SOURCE Protalex, Inc.