GalaGen Signs Term Sheet for New Financing

Apr 02, 2001, 01:00 ET from GalaGen Inc.

    MINNEAPOLIS, April 2 /PRNewswire/ --
     GalaGen Inc. (OTC Bulletin Board:   GGEN), maker of Proventra(TM) brand
 immune-enhancing food ingredients, today reported that it had signed a term
 sheet with an institutional investor for the private placement of up to
 $10 million of Preferred Stock and related Warrants.  The Preferred Stock
 would give the holders certain rights and preferences, including antidilution
 protection and preemptive rights, and would be convertible into common stock
 of the company.  The Preferred Stock, related Warrants and the common stock
 issuable upon conversion of the Preferred Stock or exercise of the 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.
     The company expects to offer the Preferred Stock to certain accredited
 investors and non-United States investors in a private placement exempt from
 registration under the Securities Act.  Under the provisions of the term
 sheet, the offering is subject to certain conditions, including completion of
 final documentation mutually agreeable to the company and the investors and
 the formation of an investor group acceptable to the lead investor.  The
 company expects the private placement to close by the end of April.
 
     About GalaGen Inc.
     GalaGen, based in Minnesota, is a nutritional ingredients company that
 develops colostrum applications for its customers.
     Except for historical information, matters discussed in this press release
 are forward-looking statements that involve risks and uncertainties,
 including, but not limited to, risks associated with consummating the proposed
 private placement of Preferred Stock and related warrants, completion of final
 documentation related to the transaction and satisfaction of the conditions to
 closing the transaction, and other important factors detailed in the Company's
 annual report on Form 10-K for fiscal 2000 filed with the Securities and
 Exchange Commission.
 
 

SOURCE GalaGen Inc.
    MINNEAPOLIS, April 2 /PRNewswire/ --
     GalaGen Inc. (OTC Bulletin Board:   GGEN), maker of Proventra(TM) brand
 immune-enhancing food ingredients, today reported that it had signed a term
 sheet with an institutional investor for the private placement of up to
 $10 million of Preferred Stock and related Warrants.  The Preferred Stock
 would give the holders certain rights and preferences, including antidilution
 protection and preemptive rights, and would be convertible into common stock
 of the company.  The Preferred Stock, related Warrants and the common stock
 issuable upon conversion of the Preferred Stock or exercise of the 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.
     The company expects to offer the Preferred Stock to certain accredited
 investors and non-United States investors in a private placement exempt from
 registration under the Securities Act.  Under the provisions of the term
 sheet, the offering is subject to certain conditions, including completion of
 final documentation mutually agreeable to the company and the investors and
 the formation of an investor group acceptable to the lead investor.  The
 company expects the private placement to close by the end of April.
 
     About GalaGen Inc.
     GalaGen, based in Minnesota, is a nutritional ingredients company that
 develops colostrum applications for its customers.
     Except for historical information, matters discussed in this press release
 are forward-looking statements that involve risks and uncertainties,
 including, but not limited to, risks associated with consummating the proposed
 private placement of Preferred Stock and related warrants, completion of final
 documentation related to the transaction and satisfaction of the conditions to
 closing the transaction, and other important factors detailed in the Company's
 annual report on Form 10-K for fiscal 2000 filed with the Securities and
 Exchange Commission.
 
 SOURCE  GalaGen Inc.