Life Sciences Institute Inc.

Life Sciences Institute Inc.

May 04, 2010 20:24 ET

Life Sciences Announces Flow-Through Offering and Close of Private Placements

CALGARY, ALBERTA--(Marketwire - May 4, 2010) - LIFE SCIENCES INSTITUTE INC. (the "Corporation or Life Sciences") (TSX VENTURE:LSN), is pleased to announce that further to its announcement of Jan 15, 2010 it is now offering a total of 6,666,666 common shares to be issued on a "flow-through" basis (each a "Flow-Through Share") at a price of $0.12 per Flow-Through Share (the "FT Offering"). The Corporation may pay finders a fee of up to an 8.00% of the gross proceeds of the FT Offering. Hold periods will apply to the securities issued under this FT Offering in accordance with applicable securities laws. This Offering is subject to the approval of the TSX Venture Exchange.

Further the Corporation is please to announce that on March 22, 2010 it closed the first tranche of the FT Offering through the issuance of 1,250,000 Flow-Through Shares at a price of $0.12 per Flow-Through Share for aggregate gross proceeds of $150,000. No commissions or finder's fee were paid relative to this offering. Hold periods will apply to the securities issued under this offering in accordance with applicable securities laws.

In addition, further to its announcement of November 2, 2009 the Corporation is please to announce that it has closed an offering (the "Offering") of 10,181,260 units (each a "Unit") at a price of $0.05 per Unit for aggregate gross proceeds of $509,063. Each Unit consisted of one common share of Life Sciences (each a "Life Sciences Share") and one transferable warrant (each a "Warrant"). Each Warrant entitles the holder thereof to acquire one additional Life Sciences Share at a price of $0.067 per share, for a period of 24 months from the date of the closing of the Offering. The securities offered pursuant to the Offering shall be subject to a four month hold period from the time of the completion of the Corporation's Change of Business ("COB") as announced on November 2, 2009, pursuant to the Seed Share Resale restrictions under Policy 5.4 of the TSXV Corporate Finance Manual.

The Corporation intends to use the proceeds relative to Offering to initially cover certain general administrative expenses and certain expenses relative to maintaining the certain assets. In addition, the Corporation intends to use the FT Offering proceeds to run a 3D/3C seismic survey over its land holdings in Saskatchewan. Following analysis of the survey, three exploration wells are forecast to be drilled to evaluate the oil target formations and three additional shallow wells to evaluate the shallow gas targets. Depending on results of the exploratory work, up to 20 oil wells and 20 gas wells may be drilled to develop these prospects.

Updated information relative to the COB will be included in a subsequent News Release of the Corporation.

Further to its November 2, 2009 News Release the Life Sciences Shares are currently suspended from trading. The Exchange has informed the Corporation that reinstatement to trading of the Life Sciences Shares will not occur until such time as all of the outstanding Exchange requirements have been satisfied. To date, the Corporation must still complete its submissions to satisfy these requirements. Until such time as the Compliance and Disclosure Department of the Exchange is satisfied that these items have been addressed, the Compliance Review will not be concluded and the suspension of the Life Sciences Shares will not be removed.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

The Change of Business

Completion of the transaction is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the transaction, any information released or received with respect to the COB may not be accurate or complete and should not be relied upon. Trading in the securities of Life Sciences Institutes Inc. should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Life Sciences Institute Inc.
    Robert C. Thomas
    President and Chief Executive Officer
    (403) 247-4319