Mr. Francois Roberge reports

LSL PHARMA GROUP ENTERS INTO BINDING AGREEMENT TO ACQUIRE QUEBEC COMPETITOR

LSL Pharma Group Inc. has entered into a binding letter of intent (LOI) to acquire a profitable, privately held, Quebec-based, competing contract drug manufacturer (CDMO) specialized in the formulation, production and marketing of natural products (Target Co.). Target Co. and its shareholders are at arm's-length from LSL Pharma.

The $2.5-million purchase price, to be paid in cash only, will be financed by the proceeds from the recently completed private placements, and includes a fully operational manufacturing plant. The share purchase transaction is expected to increase LSL Group's revenues by 15 per cent to 20 per cent on an annual basis. LSL Pharma anticipates closing the transaction by the end of Q2 2024. Upon signing of the LOI, LSL Pharma was required to make a non-refundable payment of $100,000.

Target Co. is based in the province of Quebec and will be integrated into LSL Laboratory CDMO activities. Target Co. manufactures a range of natural products in liquid, powder as well as in capsule forms, which are sold under its own brands or as under private labels.

"This accretive transaction constitutes the first step in executing our growth strategy by expanding our CDMO operations, manufacturing capabilities and customer base," said Francois Roberge, president and chief executive officer of LSL Pharma. "Target Co. is a profitable company with well-established brand names and an excellent reputation as a contract manufacturer. Its product offering, combined with that of our LSL Laboratory subsidiary, will allow us to significantly expand our presence in the fast-growing natural health products sector. We expect this transaction to generate important synergies with our existing operations, as well as leveraging our head office infrastructure," added Mr. Roberge.

About LSL Pharma Group Inc.

LSL Pharma Group 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.

We seek Safe Harbor.