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MINNEAPOLIS, April 2 —
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.
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Industry Innovators
An excerpt from Nutraceuticals World
April 2000. |
| | Learn more about companies, including GalaGen, honored by Nutraceuticals World for their innovation in science and technology, marketing strategies or product development, sustaining value, solving consumer problems or sparking growth through new paradigms. | | | Click here. |
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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.
Fourth Quarter & Year-End Financial Reports
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.
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