Mr. Francois Roberge reports

LSL PHARMA GROUP SECURES $17.5 MILLION FROM DESJARDINS AND BDC

LSL Pharma Group Inc. has secured a new $7.5-million operating line of credit from Caisse Populaire Desjardins des Patriotes as well as a new $10-million pari passu term loan from BDC (Business Development Bank of Canada) and Caisse Populaire Desjardins.

The new line of credit, which is now available, represents a $4.2-million increase over the prior combined line of credit from TD Bank and Scotiabank. The term loan financing, expected to close on or about July 7, 2025, will be disbursed in three separate tranches. The first tranche will be disbursed on closing and serves to reimburse existing loans totalling $3.2-million plus accrued interest as well as all outstanding convertible debentures listed as LSL.DB on the TSX Venture Exchange, representing a principal amount of $3,288,000 plus accrued interest. The redemption will be subject to TSX-V approval and a formal announcement and notice to debentureholders, as per the terms of the debenture indenture dated Nov. 1, 2023, which is available under LSL Pharma's issuer profile on SEDAR+.

The second and third tranches will be used to finance capital expenditures and serve to reimburse other debts and loans. Disbursement of the second and third tranches is subject to certain conditions and is expected to be made available before the end of the current fiscal year. The new loan, once fully disbursed, will help reduce the corporation's annual debt servicing requirements and contribute to lower the corporation's overall interest costs.

Interest rate on the new line of credit as well as the Desjardins portion of the term loan will be based on Desjardins's prime rate plus 1 per cent, which may be reduced based on financial criteria. The BDC portion of the term loan will be BDC's base rate plus 2.0 per cent. The rate may be reduced by up to 2.5 per cent should LSL Pharma meet certain financial criteria. The various portions of the new loan will be amortized over eight to 20 years, include a capital repayment moratorium for the first year on the BDC portion and will be subject to nominal financial covenants.

"We are pleased to announce this new financing and thank Desjardins and BDC for supporting LSL Pharma and sharing our vision as we keep implementing organic and strategic growth initiatives," said Francois Roberge, president and chief executive officer. "The new line of credit and term loan will significantly increase our working capital flexibility by providing us with in excess of $6-million of additional financing not allocated to loans/debt repayments," said Luc Mainville, executive vice-president and chief financial officer.

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. Companies forming part of LSL Pharma Group are Steri-Med Pharma Inc., LSL Laboratory Inc., Virage Sante Inc. and Dermolab Pharma Ltd.

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