LSL LSL Pharma Group Inc

LSL PHARMA GROUP INC. (TSXV: LSL) (the "Corporation" or "LSL Pharma"), a Canadian integrated pharmaceutical company, today announced the closing on March 18, 2024 of non-brokered private placements for $6.44 million representing the first closing of the $8.0 million combined financings announced on March 7, 2024 (the “Financing”).

Pursuant to the Financing, the Corporation has issued 16,086,893 units (the “Units”) at a price of $0.40 per unit for aggregate gross proceeds of $6,434,758. 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. Each issued Unit, Common Share, Warrant and Warrant Share will be subject to a four month hold period under the applicable securities laws. There were no finders’ fees paid in connection with this private placement.

The Financing includes $2,685,426 in cash proceeds, out of maximum gross proceeds of $3.5 million (the “Placement of Units”), and the conversion of $3,749,332 of the Corporation’s debts in Units, out of a maximum of units for debts of $4.5 million (the “Units for Debts”). The cash proceeds of the Financing will be used to further expand production capacity at each of the LSL Laboratories and Steri-Med Pharma plants and for general working capital purposes.

“LSL Pharma has been experiencing significant growth since the beginning of 2024. This Financing will strengthen our balance sheet and provide additional financial flexibility to capitalize on our increased production capacity and commercial expansion into the U.S.”, said Francois Roberge, President and CEO of the Corporation. “The potential for developing first-to-market ophthalmic generic products for the Canadian and U.S. markets has never been greater as we accelerate our development and regulatory initiatives to leverage and maximize our U.S. partnership with Fera Pharmaceuticals”, added Mr. Roberge.

Insiders of the Corporation (the “Insiders”) participating into the financing are acquiring a total of 875,000 Units for a subscription price of $350,000. The participation of Insiders in the Financing constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of such Insiders participation because neither the fair market value of the Financing nor the fair market value of the consideration for the Units paid by the Insiders exceeds 25% of the Corporation's market capitalization.

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.

Readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that any of the events referred to in the forward-looking statements will transpire, and if any of them do, the actual results, performance or achievements of the Corporation may differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date of this press release. The Corporation does not undertake to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

ABOUT LSL PHArma GROUP inc.

LSL Pharma Group is an integrated Canadian pharmaceutical company specializing in the development, manufacturing and distribution of natural health products and dietary supplements in solid dosage forms, as well as high-quality sterile ophthalmic pharmaceuticals. For further information, please visit the following website www.groupelslpharma.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT :

François Roberge, President and Chief Executive Officer Telephone: (514) 664-7700 E-mail: Investors@groupelslpharma.com