LSL Pharma Group Secures $3.8 Million as the Second and Final Tranche of Its Private Placement of Units - Seite 2

Within this second tranche of the Financing, Alfera Pharmaceuticals, LLC, a company controlled by Frank DellaFera, a director of the Corporation (the “Subscriber”), has received 1,250,000 Units pursuant to the Financing for an aggregate subscription price of $500,000. Its direct or indirect holding, inclusive of Mr. DellaFera’s holding, on a non-diluted basis, was 0.04% prior to the Financing and reaches now 1.20% following the Financing while, on a partially diluted basis, was of 0.32% prior to the Financing and reaches now 2.57%. The board of directors of the Corporation has considered the issuance of the Units to the Subscriber as a related party transaction subject to Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (the “Regulation 61-101”) and has unanimously approved the issuance, but excluding Frank DellaFera. This transaction is exempt from the formal valuation and minority shareholder approval requirements of Regulation 61-101 as the Corporation is listed on the TSX Venture Exchange and the fair market value of any security issued to, or the consideration paid, does not exceed 25% of the Corporation's market capitalization. LSL Pharma did not file a material change report pertaining to the Subscriber's interest more than 21 days prior to the date of the closing of the Financing, as such interest was not determined at that time. The board members of the Corporation, but excluding Frank DellaFera, reviewed its financial conditions and the state of the financial market and unanimously determined that the terms and conditions of the Financing, including the issuance to the Subscriber, were fair and equitable and represented the best strategic option available. In addition, neither the Corporation nor the Subscriber have knowledge of any material information concerning the Corporation or its securities that has not been generally disclosed.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in the Corporation's filings with Canadian securities regulatory authorities, such as legislative or regulatory developments, increased competition, technological change, and general economic conditions. All forward-looking statements made herein should be read in conjunction with such documents.