LSL Pharma Group Secures $6.44 Million as the First Closing of Concurrent Non-Brokered Private Placements

• $2.7M cash investments secured including $0.4M from Insiders

• $3.75M of Debt converted
  

BOUCHERVILLE, Quebec, March 19, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma"), a Canadian integrated pharmaceutical company, today announced the closing on March 18, 2024 of non-brokered private placements for $6.44 million representing the first closing of the $8.0 million combined financings announced on March 7, 2024 (the “Financing”).

Pursuant to the Financing, the Corporation has issued 16,086,893 units (the “Units”) at a price of $0.40 per unit for aggregate gross proceeds of $6,434,758. 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 36 months following the closing of the Financing. Each issued Unit, Common Share, Warrant and Warrant Share will be subject to a four month hold period under the applicable securities laws. There were no finders’ fees paid in connection with this private placement.

The Financing includes $2,685,426 in cash proceeds, out of maximum gross proceeds of $3.5 million (the “Placement of Units”), and the conversion of $3,749,332 of the Corporation’s debts in Units, out of a maximum of units for debts of $4.5 million (the “Units for Debts”). The cash proceeds of the Financing will be used to further expand production capacity at each of the LSL Laboratories and Steri-Med Pharma plants and for general working capital purposes.

“LSL Pharma has been experiencing significant growth since the beginning of 2024. This Financing will strengthen our balance sheet and provide additional financial flexibility to capitalize on our increased production capacity and commercial expansion into the U.S.”, said Francois Roberge, President and CEO of the Corporation. “The potential for developing first-to-market ophthalmic generic products for the Canadian and U.S. markets has never been greater as we accelerate our development and regulatory initiatives to leverage and maximize our U.S. partnership with Fera Pharmaceuticals”, added Mr. Roberge.