Lattice Biologics Ltd. Reports Second Quarter 2016 Highlights

SCOTTSDALE, AZ--(Marketwired - May 26, 2016) -

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES

Lattice Biologics Ltd. (TSX VENTURE: LBL) ("Lattice Biologics" or the "Company") announces financial results for the second quarter ended March 31, 2016:

Second Quarter Financial Results (all figures denoted in USD):

With 50 new surgeons added to the Company's user base during the first two quarters of 2016, the Company is rapidly expanding into new markets and with cutting edge new products. Lattice Biologics' revenue was $1,006,975 at 27% gross margin in the three months ended March 31, 2016 compared to $1,065,920 at 18% gross margin in the three months ended March 31, 2015. The Company expects gross margins to continue to increase as it shifts the sales mix across the new, significantly higher-margin product lines.

Also during the first two quarters of 2016, Lattice Biologics increased its total number of direct hospital approvals from 18 to 27, with another approximate 200 hospital approvals currently pending.

The Company continues to make significant improvements on the balance sheet, including an upsurge in cash from $50,000 to $518,000, a 90% increase. The previously disclosed commitments to convert $1,400,000 of debt to equity have been increased to $1,733,000 of debt, which is expected to be converted to equity (at a weighted average price of CDN $0.23/share). This is in addition to the initial $500,000 (at a weighted average price of CDN $0.21/share) converted at the time of going public, for a total of $2,233,000 of debt committed to be converted to equity during the first two quarters of 2016. The $1,733,000 being converted represents 42% of the Company's long term debt as of March 31, 2016.

Lattice Biologics maintains its commitment to honoring the gift of donation by implementing a stronger quality control environment for the recovery and processing of donors. As the Company's revenues are still largely concentrated in the musculoskeletal market (representing 84% of the Company's sales mix in the three months ended March 31, 2016 compared to 90% in the three months ended March 31, 2015), revenue is highly dependent on the number of donors the Company is able to recover, and, in turn, process.