Pappas Capital Announces the Passing of…

MethylGene Inc. (TSX:MYG) announced today it has completed its previously announced private placement of 7,356,044 units at a subscription price per unit of $3.10, each unit consisting of one common share and thirty one-hundredths (0.30) of a common share purchase warrant, exercisable for a period of three years from the date of issuance at an exercise price of $3.90 for the initial year, $4.10 for the second year, and $4.25 for the third year, for gross proceeds to MethylGene of approximately US $19.9 million (Cdn $22.8 million). The transaction was led by ProQuest Investments III, LP. Other new investors participating in the offering are Domain Public Equity Partners LP, CIBC Capital Partners, and Pappas Ventures. An aggregate of 7,356,044 common shares and 2,206,809 common share purchase warrants were issued in the transaction.