LSL Pharma Group Announces Closing of Second and Final Tranche of Private Placement and Closing of Units for Debt
BOUCHERVILLE, Quebec, July 15, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma "), a Canadian integrated pharmaceutical company, is pleased to announce that it closed on July 12, 2024, the second and last tranche of a non-brokered private placement (the “Financing”) consisting of 2,400,000 units (each, a “Unit”) at a price of $0.40 per Unit for total gross proceeds of $960,000. Each Unit consists of one class A share of the Corporation (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder, subject to adjustments in certain cases, to purchase one Common Share (a “Warrant Share”) at a price of $0.70 for a period of 24 months following the closing date.
The Corporation was thus able to raise with both tranches a total of $2,450,800 in Financing. The cash proceeds of the Financing will be used to further expand production capacity at each of the LSL Laboratories, Steri-Med Pharma, and Virage Santé plants and for general working capital purposes.
In connection with this second and final tranche of the Financing, the Corporation paid to finders dealing at arm’s length with the Corporation, finders’ fees for a total of $14,600 in cash and issued 36,500 finders’ warrants (“Finder’s Warrants”). Each Finder’s Warrant entitles the holder to purchase one (1) Common Share at a price of $0.70 for a period of 18 months following the closing date.
Further to its press release of June 5, 2024, the Corporation also announces that it has completed the settlement of $560,082.88 of the Corporation’s debts through the issuance of 1,400,206 Units (the “Units for Debt”). The debts converted into Units relate to promissory notes and non-convertible secured debentures. The Corporation had elected to settle such debts through the issuance of Units to preserve cash and strengthen the Corporation’s balance sheet.
“This latest tranche of our private Financing, including the conversion of debt into equity, further confirms investors' continued interest in LSL Pharma. This new financing will enable us to maintain and accelerate our organic growth initiatives for our three manufacturing sites, and to fund the growth of our ophthalmic product portfolio," said François Roberge, President and CEO of the Corporation. "Finally, since the beginning of our 2024 fiscal year, we have successfully completed a series of financial transactions aimed at strengthening our financial position and reducing our debt. We intend to continue pursuing similar opportunities over the coming quarters," added Mr. Roberge.
Each issued Unit, Common Share, Warrant, Warrant Share, Finder’s Warrant and Common Share issued upon the exercise of the Finder’s Warrant will be subject to a four-month hold period under the applicable securities laws. The Financing and the Units for Debt are subject to the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in the Corporation's filings with Canadian securities regulatory authorities, such as legislative or regulatory developments, increased competition, technological change and general economic conditions. All forward-looking statements made herein should be read in conjunction with such documents.
Readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that any of the events referred to in the forward-looking statements will transpire, and if any of them do, the actual results, performance or achievements of the Corporation may differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date of this press release. The Corporation does not undertake to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
ABOUT LSL PHARMA GROUP INC.
LSL Pharma Group Inc. is an integrated Canadian pharmaceutical company specializing in the development, manufacturing, and commercialization of high-quality sterile ophthalmic pharmaceuticals, as well as natural health products in solid and liquid dosage forms. For further information, please visit the following website www.groupelslpharma.com.
Neither 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.
CONTACT François Roberge President and Chief Executive Officer (514) 664-7700 E-mail: Investors@groupelslpharma.com OR Luc Mainville Executive VP & Chief Financial Officer (514) 664-7700 ext.: 301 E-mail : lmainville@groupelslpharma.com
