PharmaGap Provides Update on Status

OTTAWA, Feb. 4, 2013 /CNW/ - PharmaGap Inc. (TSXV: GAP) (OTC.BB: PHRGF) ("PharmaGap" or "the Company") today was informed by Clinical Value Corporation ("CVC") that it has not, to date, been successful in efforts arranging funding required to complete the license of the PharmaGap cancer drug program approved by shareholders on August 3, 2012 to CVC.

The Company and CVC have worked with investment advisors over the past six months to generate financing arrangements with investment firms and organizations that deal in early stage biotech, in North America and Europe. However these efforts have not been successful.

The Company has suspended all operations, and has vacated its office and laboratory space at 100 Sussex Drive in Ottawa as of January 31, 2013. Intellectual Property assets of the Company have been preserved in order to maintain the ability to generate future value from the investment made to date.

The Board of Directors and Management of PharmaGap will continue to pursue alternative arrangements in order to meet or reduce obligations to creditors and employees of the Company and to deliver value to shareholders. These arrangements may include the sale or license of the intellectual property of the Company and monetization of accumulated tax losses.

About PharmaGap Inc.
PharmaGap Inc. (TSX-V: GAP), based in Ottawa, ON, is a biotechnology company with a core focus on developing novel peptide therapeutics for the treatment of cancer. PharmaGap's GAP-107B8 is a novel peptide drug that has been shown to be effective in numerous cancer types, including chemo-resistant cancers, in vitro.

Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent management's current expectations of future events, and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "continues", and similar expressions. Although management believes that expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.

By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this news release, PharmaGap will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, the Company assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: results of ongoing product testing and development; regulatory approvals required to complete development of products; ability to manufacture product at quality and scale for human use on an economically sound basis; patient reimbursement by private and public health insurance programs; unintended side effects of products; competitive products; product liability; intellectual property; reliance on key personnel; risks of future legal proceedings; income tax matters; availability and terms of financing; distribution of securities; effect of market interest rates on price of securities, and potential dilution.

Note: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  No Securities Commission or other regulatory authority having jurisdiction over PharmaGap has approved or disapproved of the information contained herein.  This release contains forward looking statements that may not occur or may change materially.

SOURCE PHARMAGAP INC.

Copyright 2013 Canada NewsWire

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