PVTTF Pivotal Therapeutics Inc (CE)

WOODBRIDGE, ON, Oct. 7, 2013 /PRNewswire/ - Pivotal Therapeutics Inc. (OTCQX: PVTTF) (CNSX: PVO), a specialty pharmaceutical company with a focus on Omega-3 therapies
for cardiovascular disease (CVD) and overall health, announced today
that it completed the sale of 1,649 units at a price of CDN $1,000 per
unit of its previously announced debt financing agreement led by
Crossover Healthcare Fund LLC, a U.S. institutional fund. Proceeds of
the first tranche totaled CDN $1,649,280. To date the total investment
from Crossover Healthcare Fund has exceeded CDN $4,300,000.

Each unit will consist of CDN $1,000 of Convertible Promissory Notes
(the "Note" or "Notes") and warrants to purchase 1,200 shares of common
stock of the Company (the "Warrants"). The maturity of the Notes is two
(2) years from the date of issuance. Investors may convert their Notes
into common shares for CDN $0.25 per share at anytime prior to
maturity. The Notes will accrue interest at a rate of 8% per annum. 
The closing of the debt financing is subject to the satisfaction of
customary closing conditions and is expected to occur on or about
October 31, 2013.

The Company also announced that it closed the equity portion of the
financing led by Crossover Healthcare Fund consisting of 12,462,768
units at a price of CDN $0.22 per unit for total proceeds of CDN
$2,741,809. Each unit consists of one common share and one-half
purchase warrant. Each full purchase warrant may be exercised to
purchase one common share of the Company upon payment of the exercise
price of $0.30 per common share. The purchase warrants expire 60 months
following the closing of the equity portion of the private placement
and may be called by the Company at any time after six months following
closing, provided the common shares of the Company have traded at a
price of at least $0.45 for 20 trading days within a 30 consecutive day
trading period.

The proceeds from the financing are being used to expand sales and
marketing, advance ongoing clinical trials, and for general working
capital, including business development.

Please refer to the Company Form 9 Filings on the CNSX website (www.cnsx.ca) for detailed updates with regards to the financing.

About VASCAZEN^®

VASCAZEN^® is currently available in the U.S. as a prescription only Medical Food
specifically formulated for the dietary management of an Omega-3
deficiency in cardiovascular patients. VASCAZEN^® is a >90% pure Omega-3 with a proprietary 6:1 EPA:DHA fatty acid
formulation, protected by a series of both U.S. and foreign patents. .

VASCAZEN^® has been clinically shown to correct an Omega-3 deficiency within eight
weeks of treatment with positive concomitant effects on the lipid
profiles, mainly a 48% reduction of triglycerides and an increase of
HDL without negative impact on the LDL-C lipid profile.  VASCAZEN^®'s results were achieved with a dose of 3 grams of EPA and DHA per day
of a prescription grade, high purity Omega-3.

About Pivotal Therapeutics Inc.


Pivotal Therapeutics is a publicly traded (OTCQX: PVTTF) (CNSX: PVO)
specialty pharmaceutical company with a focus on cardiovascular disease
and overall health. Pivotal Therapeutics' lead product VASCAZEN^® is a prescription only Medical Food formulated to meet the dietary
Omega-3 deficient needs of patients with cardiovascular disease through
elevating Eicosapentaenoic acid (EPA) and Docosahexaenoic acid (DHA) to
levels associated with reduced risk of cardiovascular complications. OMAZEN^TM is a pharmaceutical grade Omega-3 providing over 90% pure Omega-3 in
each capsule for the maintenance of good health. OMAZEN^TM is a patented product available for sale and distribution in Canada.

Disclosure Notice

The information contained in this document is as of October 7, 2013.
This press release contains forward-looking statements. Such
forward-looking statements are subject to a number of risks,
assumptions and uncertainties that could cause Pivotal's actual results
to differ materially from those projected in such forward-looking
statements. These statements can be identified by the use of words such
as "will", "anticipate", "estimate", "expect", "project", "forecast",
"intend", "plan", "believe", "project", "potential", and similar
expressions with any discussion of future operating or financial
performance or events. In particular, factors that could cause actual
results to differ materially from those in forward looking statements
include the following: Pivotal's inability to obtain additional
financing on acceptable terms; growth in costs and expenses; inability
to compete with others who provide comparable products; risk that the
Company's products will not gain widespread market acceptance; risks
relating to the Company's ability to maintain its CSNX listing.
Forward-looking statements speak only as of the date made and are not
guarantees of future performance. The Company undertakes no obligation
to publicly update or revise any forward-looking statements contained
in this document as a result of new information or future events or
developments. CNSX has not reviewed and does not accept responsibility
for the adequacy or accuracy of this information.

SOURCE Pivotal Therapeutics Inc.