LSL Pharma Group Announces the Upsizing of Its Private Placement From $3.5 Million to $7.5 Million

BOUCHERVILLE, Québec, April 11, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma "), a Canadian integrated pharmaceutical company, today announced the upsizing of its previously communicated non-brokered private placement financing of Units (as defined hereinafter) to maximum gross proceeds of $7.5 million (188 750 000 Units) (the “Financing”). The upsizing follows an initial first closing of $2.68 million announced on March 18, 2024 concurrent to conversion of debt into units for $3.75 million.

Each Unit to be issued pursuant to the Financing will be at a price of $0.40 (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 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.

INVESTOR RELATIONS

As announced on October 6, 2023, LSL Pharma had engaged Relations Publiques Paradox Inc. (“Paradox”) to provide investor relations services on its behalf. LSL Pharma wishes to confirm that at the time of its appointment, Paradox was an arm's length party to LSL Pharma. The directors of Paradox are Jean-François Meilleur, acting President, Carl Desjardins and Karl Mansour. Paradox Équité Partenaires Ltée, itself controlled by Gestion Jean-François Meilleur Inc., Gestion Carl Desjardins Inc. and Gestion Karl Mansour Inc., is the majority shareholder of Paradox. Jean-François Meilleur, Carl Desjardins and Karl Mansour were the persons providing the services to LSL Pharma. Paradox's head office is situated at 306, Sherbrooke Street East, 1st floor, Montréal, Québec. At the time of his appointment, with the exception of a holding of less than 2% of the shares issued and outstanding on a non-diluted and diluted basis, Paradox had no other participation, direct or indirect, in LSL Pharma or its securities, nor the right or the intention to acquire additional participation. Otherwise, Paradox's monthly fees were payable from LSL Pharma's cash and cash equivalents. The contract with Paradox was terminated on January 31, 2024.