LSL Pharma Group Announces a Combination of Private Placements for Maximum Aggregate Gross Proceeds of $8 Million

• Up to $3.5 M in cash proceeds
  
• Up to $4.5 M in debts conversion
  
• Proceeds to be used to further expand production capacity
  

BOUCHERVILLE, Québec, March 07, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma "), a Canadian integrated pharmaceutical company, today announced the launch of a non-brokered private placement financing of Units (as defined hereinafter) for minimum gross proceeds of $2.5 million and a maximum of $3.5 million (the “Financing”) and that it is conducting discussions with certain creditors to settle debts in Units for an aggregate amount ranging from a minimum of $2.5 million and a maximum of $4.5 million (the “Units for Debts”).

The Units for Debts is conducted in parallel to the Financing to strengthen the Corporation’s balance sheet and to dedicate the proceeds from the Financing mainly to further expand production capacity at each of the LSL Laboratories and Steri-Med Pharma plants and for general working capital purposes.

Each Unit to be issued pursuant to the Financing and the Units for Debts will be at a price of $0.40 per unit (the “Units”) and will consist of one (1) class A share of the Corporation (a “Common Share”) and one (1) Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder, subject to adjustments in certain cases, to purchase one (1) Common Share (a “Warrant Share”) at a price of $0.70 for a period of 36 months following the closing of the Financing.

Although the Financing is non-brokered, the Corporation may pay finders’ fees of up to 5% of the gross proceeds raised from investors introduced to the Corporation by a finder, payable in cash; and finders’ warrants of up to 5% of the number of Units issued to investors introduced to the Corporation by a finder. Each Finder’s Warrant will entitle the holder, subject to adjustments in certain cases, to purchase one (1) Common Share at a price of $0.70 for a period of 18 months following the closing of the Financing (the “Finder’s Warrants”).

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 Debts are subject to the regulatory approvals, including the TSX Venture Exchange.

The Corporation also confirms that the previously announced $5 million convertible debenture offering launched on September 21, 2023, is hereby terminated.

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