AlliancePharma Completes Previously Announced Transformative Acquisitions

THETFORD MINES, QUEBEC--(Marketwired - Aug. 23, 2016) - AlliancePharma Inc. (TSX VENTURE:APA) ("AlliancePharma" or the "Company") is pleased to announce that it has completed the previously announced acquisitions of Pharmapar Inc. and Agence L.I.V. Inc. These transformative transactions position AlliancePharma for the next stage of its corporate development. The Company now has approximately 100 employees, a network of over 750 allied health professional contractors, 1,100 clients, annual gross sales of over $50 million and pro-forma Adjusted EBITDA of approximately $5 million.

"I am delighted to announce the completion of these acquisitions and confirm our new strategic financing with Persistence Capital Partners," said AlliancePharma president and CEO, Marc Lemieux. "We look forward to organically growing these businesses in collaboration with their management teams, and to exploring additional acquisition opportunities as we continue to broaden our suite of services to pharmacies and pharmaceutical companies."

Diversification and a pan-Canadian presence

Following these acquisitions, the Company has regrouped its activities into two segments to better reflect its focus on its customers:

• Pharmacy Services, which provides a range of services to pharmacies and pharmacists, including staffing, generic medication, and related services; and
• Pharmaceutical Solutions, which provides a range of medical communications, training and other services to pharmaceutical firms across Canada.

Term Loan Financing of $14.5 million

AlliancePharma is pleased to announce that it has entered into a new credit facility of approximately $14.5 million with National Bank of Canada ("NBC").

The 5-year secured term loan bears interest at prime rate plus a spread varying between 0.50%-1.70% per annum based on certain leverage ratios. Proceeds from the loan will be used to finance previously announced acquisitions, repay existing indebtedness and transaction fees.

"We are pleased with the confidence shown by NBC and its dedicated Health Group. This credit facility helps to set the stage for continued organic and M&A growth for the Company," indicated Bruno Dumais, Chief Financial Officer.

About AlliancePharma

AlliancePharma is a leading solution and service provider to the pharmaceutical market. Today it is a respected name for quality and expertise among pharmacists. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.alliancepharmainc.ca and on SEDAR at www.sedar.com.