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• Up to $3.0 M in cash proceeds
  

• Up to $1.5 M in debts conversion

BOUCHERVILLE, Quebec, June 05, 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) of a maximum of $3.0 million (7.5 million Units) (the “Financing”) and that it is conducting discussions with its creditors to settle debts in Units for an aggregate amount of up to $1.5 million (3.75 million Units) (the “Units for Debts”). The closing of each of the Financing and the Units for Debts may take place concurrently but are not conditional on successfully completed the other transaction. Proceeds to be used to further expand production capacity and strengthen working capital.

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 24 months following the closing of the Financing.

Any finder to the Financing may receive a cash commission equal to up to 5% of the gross proceeds of the subscriptions introduced through its intermediary and that number of Finder’s Warrants (as defined hereinafter) which is equal to up to 5% of the number of Units subscribed for from subscribers introduced through its intermediary. 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.

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.