Mr. Steve Saviuk reports

VALEO PHARMA CLOSES $4.5 MILLION FINANCING

Valeo Pharma Inc. has closed a $4.5-million financing. The company closed a non-brokered private placement offering of 13,999,997 units of the company at a price of 28 cents per unit for gross proceeds of $3.92-million, including the participation of Investissement Quebec for $2.0-million and $1,421,000 from insiders. In addition, the company secured a loan agreement with a related party for a principal amount of $580,000 bearing annual interest at a rate of 12 per cent.

"We greatly appreciate the support of Investissement Quebec and our insiders in leading this capital financing, thereby continuing to demonstrate their confidence in our business plan and our growth performance," said Steve Saviuk, chief executive officer. "This financing will strengthen our working capital position and enable us to support the market share gains of our core products in our key therapeutic areas."

"We are pleased to support Valeo Pharma in their growth strategy," stated Guy LeBlanc, president and chief executive officer of Investissement Quebec. "The life sciences industry is a key sector of our economy, and we will keep supporting and assisting our entrepreneurs in achieving their goals, both in Quebec and around the world."

The company issued 13,999,997 units at a price of 28 cents per unit for total gross proceeds of $3.92-million. Each unit consist of one Class A share of the company and one-half share purchase warrant of the company. Each full warrant entitles the holder to purchase one share in the capital of the company at the price of 35 cents per warrant share for a period of 60 months from the closing date of the offering.

In the event that the daily volume weighted average trading price of the Shares over any 10 consecutive trading days is greater or equal to 70 cents, the company may give notice to the warrantholder, at any time after the first 12 months following the closing, that all outstanding warrants must be exercised within a period of 30 days from the date of receipt of the notice, failing which the warrants will automatically expire

The company will use the net proceeds of the offering to finance working capital.

The common shares and the warrants are subject to a statutory four-month hold period under the applicable securities laws, and in such case the certificates evidencing the shares and the warrants will bear a legend to that effect, as applicable.

Each subscription by a related party of the company is considered to be a related party transaction for purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company did not file the material change report more than 21 days before the expected closing date of the offering as the details of the offering and the participation therein by each related party of the company were not settled until shortly prior to the closing of the offering, and the company wished to close the offering on an expedited basis for sound business reasons. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25 per cent of the company's market capitalization, and no securities of the company are listed or quoted for trading on prescribed stock exchanges or stock markets. Additionally, the company is exempt from minority shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(b) as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25 per cent of the company's market capitalization. The offering was approved by the board of directors of Valeo.

About Investissement Quebec

Investissement Quebec's mission is to play an active role in Quebec's economic development by stimulating business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all of the province's administrative regions, the corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Quebec -- CRIQ. In addition, through Investissement Quebec International, the corporation prospects for talent and foreign investment, and assists Quebec businesses with export activities.

About Valeo Pharma Inc.

Valeo Pharma is a fast-growing Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on respiratory/allergy, ophthalmology and hospital specialty products. Headquartered in Kirkland, Que., Valeo Pharma has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.

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