LSL Pharma Group Secures $3.8 Million as the Second and Final Tranche of Its Private Placement of Units

BOUCHERVILLE, Quebec, April 24, 2024 (GLOBE NEWSWIRE) -- LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma"), a Canadian integrated pharmaceutical company, today announced the second and final tranche of its private placement financing of Units (as defined hereafter) for $3.8 million representing the second closing of the upsized $7.5 million non-brokered private placement announced on April 11, 2024 (the “Financing”). The second tranche follows an initial first closing of $2.7 million announced on March 19, 2024, bringing the total gross proceeds from the private placement to $6.5 million when combined with the previous closing.

Pursuant to the second tranche of the Financing, the Corporation has issued 9,485,000 units (the “Units”) at a price of $0.40 per unit for aggregate gross proceeds of $3,794,000. 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.

In connection with this Financing, the Corporation paid to a finder dealing at arm’s length with the Corporation, finders’ fees for a total of $30,000 in cash and issued 75,000 finders’ warrants. Each Finder’s Warrant entitles the holder 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 underlying the Finder’s Warrants will be subject to a four month hold period under the applicable securities laws. The Financing is subject to the final approval of the TSX Venture Exchange.

"This successful second tranche of financing will be used to increase production capacity by adding new equipment at each of the LSL Laboratories and Steri-Med Pharma plants, as well as helping to increase our working capital and for specific strategic purposes" said François Roberge, President and CEO of the Corporation. "With the conversion in Units of Corporation’s debts as previously announced on March 19, 2024, our balance sheet is stronger than ever," added Mr. Roberge.