LSL Pharma closes $2.27-million private placement

Executive Summary

• LSL Pharma Group Inc. has closed a non-brokered private placement raising gross proceeds of $2,275,000.
• The company issued 5,687,500 units at $0.40 per unit, with each unit comprising one Class A share and one common share purchase warrant exercisable at $0.70.
• Proceeds are designated for accelerating eye-care product development, manufacturing line validation, equipment acquisition, potential M&A, and working capital.

Key Details

• Gross Proceeds: $2,275,000.
• Units Issued: 5,687,500 units.
• Price Per Unit: $0.40 CAD.
• Unit Composition: Each unit consists of one Class A share and one common share purchase warrant.
• Warrant Terms: Each warrant allows the purchase of one common share at an exercise price of $0.70 for a period of 24 months following closing.
• Use of Proceeds:
  • Accelerate development of the eye-care product portfolio for Canadian and international markets.
  • Complete installation and validation of the second ointment production line at Steri-Med.
  • Acquire additional manufacturing equipment for the CMO division to support increased demand.
  • Potential M&A opportunities.
  • General working capital purposes.
• Finder’s Fees:
  • Cash paid: $23,750.
  • Warrants issued: 59,375 finder's warrants.
  • Finder's Warrant Terms: Exercisable at $0.70 per share for 12 months following closing.
• Insider Participation:
  • Francois Roberge (President and CEO) subscribed for 187,500 units.
  • Mario Paradis (Director) subscribed for 125,000 units.
  • Transaction approved by the board as a related party transaction under Regulation 61-101, exempt from formal valuation and minority shareholder approval requirements due to the TSX Venture Exchange listing and market capitalization thresholds.
• Regulatory Conditions: Subject to regulatory approval of the TSX Venture Exchange.
• Hold Period: All securities (units, shares, warrants) are subject to a four-month hold period under applicable securities laws.

Notable Quotes

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