Mr. Francois Roberge reports

LSL PHARMA GROUP SECURES $3.8 MILLION AS THE SECOND AND FINAL TRANCHE OF ITS PRIVATE PLACEMENT OF UNITS

LSL Pharma Group Inc. has closed 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 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 at a price of 40 cents 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. Each warrant entitles the holder, subject to adjustments in certain cases, to purchase one common share at a price of 70 cents 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 common share at a price of 70 cents for a period of 18 months following the closing of the financing.

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 Francois Roberge, president and chief executive officer 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.

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 1.25 million 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 per cent prior to the financing and reaches now 1.20 per cent following the financing while, on a partially diluted basis, was of 0.32 per cent prior to the financing and reaches now 2.57 per cent. 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 and has unanimously approved the issuance, but excluding Mr. 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 per cent 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 Mr. 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.

About LSL Pharma Group Inc.

LSL Pharma is an integrated Canadian pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceuticals, as well as natural health products in solid dosage forms.

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