Mr. Francois Roberge reports

LSL PHARMA GROUP COMPLETES THE ACQUISITION OF LABORATOIRE DU-VAR INC.

Further to LSL Pharma Group Inc.'s press release of July 31, 2025, it has completed the acquisition of Laboratoire Du-Var Inc., a contract manufacturer of cosmetics and natural health products established in 1947.

Through this acquisition, LSL Pharma will immediately more than double its production capacity for liquid and semi-solid products, in addition to complementing manufacturing infrastructure to its existing facilities. The integration of Du-Var will also enable the company to expand its customer base in the CMO segment, while giving it access to new markets in the natural health products, cosmetics, personal care and pet care.

"This acquisition marks another important milestone in LSL Pharma's growth. It not only allows us to significantly increase our production capacity for liquid and semi-solid products, but also to diversify our offering and attract new customers in segments that complement our core businesses," said Francois Roberge, president and chief executive officer of LSL Pharma. "Du-Var enjoys a solid reputation and its expertise has been recognized for over 75 years. We are delighted to welcome its team to LSL Pharma," he added.

This transaction is part of LSL Pharma's strategic plan, which aims to build an integrated pharmaceutical, cosmetic and natural health products manufacturing hub in Canada, combining innovation, quality and operational flexibility. The effective date of the transaction is Nov. 17, 2025.

Transaction details

The total consideration for the transaction included the renewal of Du-Var's operating line of credit, term loan and certain liabilities totalling a maximum of $3.2-million. For the 12-month period ended on Aug. 31, 2025, Du-Var generated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $500,000, from $4.4-million of revenues. As at Aug. 31, 2025, Du-Var had total assets of $6.9-million, and liabilities of $5.1-million including bank loans totalling $3.0-million. Du-Var adds 30,000 square feet of production capacity and modern manufacturing equipment, and is expected to increase the CMO segment's revenues by more than 25 per cent. Over the last several months, LSL Pharma has been working with Du-Var's management to ensure a smooth transition. Once fully integrated, the company expects this transaction to be accretive.

About Laboratoire Du-Var Inc.

Founded in 1947, Laboratoire Du-Var specializes in the development and manufacturing of cosmetics, natural health products, and personal care products. The company also manufactures pet care products. Recognized for its expertise and commitment to product quality, Du-Var offers turnkey solutions to a diverse clientele in Canada and abroad. Du-Var is cGMP (current good manufacturing practice), Health Canada, FDA (Food and Drug Administration), United States OTC, Dietary Supplements, NHP and Animal Natural Health Products certified, and is C-TPAT accredited.

About LSL Pharma Group Inc.

LSL Pharma Group is a Canadian integrated pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceutical products, as well as pharmaceutical, cosmetic and natural health products in solid, semi-solid and liquid dosage forms. Leveraging its technical expertise, certified facilities and experienced team, LSL Pharma delivers high-quality solutions that meet the highest industry standards. The companies that are part of the LSL Pharma Group are Steri-Med Pharma Inc., Laboratoire LSL Inc., Virage Sante Inc., Dermolab Pharma Ltd. and Laboratoire Du-Var Inc.

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