AlliancePharma Inc.
TSX VENTURE : APA

AlliancePharma Inc.

August 23, 2016 13:00 ET

AlliancePharma Completes Previously Announced Transformative Acquisitions

Materially Expands Presence in Pharmacy Services and Pharmaceutical Solutions Markets

THETFORD MINES, QUEBEC--(Marketwired - Aug. 23, 2016) - AlliancePharma Inc. (TSX VENTURE:APA) ("AlliancePharma" or the "Company") is pleased to announce that it has completed the previously announced acquisitions of Pharmapar Inc. and Agence L.I.V. Inc. These transformative transactions position AlliancePharma for the next stage of its corporate development. The Company now has approximately 100 employees, a network of over 750 allied health professional contractors, 1,100 clients, annual gross sales of over $50 million and pro-forma Adjusted EBITDA of approximately $5 million.

"I am delighted to announce the completion of these acquisitions and confirm our new strategic financing with Persistence Capital Partners," said AlliancePharma president and CEO, Marc Lemieux. "We look forward to organically growing these businesses in collaboration with their management teams, and to exploring additional acquisition opportunities as we continue to broaden our suite of services to pharmacies and pharmaceutical companies."

Diversification and a pan-Canadian presence

Following these acquisitions, the Company has regrouped its activities into two segments to better reflect its focus on its customers:

  • Pharmacy Services, which provides a range of services to pharmacies and pharmacists, including staffing, generic medication, and related services; and
  • Pharmaceutical Solutions, which provides a range of medical communications, training and other services to pharmaceutical firms across Canada.

Term Loan Financing of $14.5 million

AlliancePharma is pleased to announce that it has entered into a new credit facility of approximately $14.5 million with National Bank of Canada ("NBC").

The 5-year secured term loan bears interest at prime rate plus a spread varying between 0.50%-1.70% per annum based on certain leverage ratios. Proceeds from the loan will be used to finance previously announced acquisitions, repay existing indebtedness and transaction fees.

"We are pleased with the confidence shown by NBC and its dedicated Health Group. This credit facility helps to set the stage for continued organic and M&A growth for the Company," indicated Bruno Dumais, Chief Financial Officer.

About AlliancePharma

AlliancePharma is a leading solution and service provider to the pharmaceutical market. Today it is a respected name for quality and expertise among pharmacists. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.alliancepharmainc.ca and on SEDAR at www.sedar.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release from AlliancePharma contains forward-looking statements. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target, and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, predict, could, expect, intend, may, plan, seek, should, strive, and will. By their nature, forward-looking statements require us to make estimates and assumptions and express opinions based on current conditions and anticipated developments, as well as other factors that Management may deem appropriate under the circumstances. There is inherent uncertainty and significant risk in these estimates, assumptions, and opinions, particularly of a commercial, economic, and competitive nature, and they are therefore subject to change. AlliancePharma cannot guarantee that these estimates, assumptions, and opinions will prove to be accurate.

This press release contains forward-looking statements with regard to the following: the financial, cash flow, and growth prospects of the Corporation following the acquisitions; certain strategic benefits and operational synergies; corporation management following the merger; and the anticipated earnings of AlliancePharma and the acquired entities. The pro forma information in this press release must not be construed as necessarily reflecting what the actual financial and other operating results would have been if AlliancePharma and acquisitions had operated together as a single unit during the cited periods.

Numerous risks and uncertainties may cause the actual outcomes of the merged Corporation to differ substantially from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements, specifically with regard to the following: achievement of expected outcomes, including growth in operating revenue as a result of undertakings by the merged Corporation; heightened competition from existing or new market competitors; changes to the economic situation, including inflation or deflation; variations in interest or exchange rates or in the price of derivatives or inputs; inability to achieve desired outcomes in labor negotiations; inability to attract and retain key employees or plan efficiently for succession needs; damage to the reputation of the brands promoted by the merged Corporation; the impact of new or amended legislation; changes in regulatory requirements that affect the merged Corporation, including changes to fiscal laws and regulations or to fee structures; new accounting pronouncements or changes to current accounting practices; the possibility that the merged Corporation may contravene a law or policy or behave in a non-ethical fashion; unfavorable outcomes from lawsuits brought against the merged Corporation; or events or series of events that may interrupt operations.

Readers are cautioned that the above list is not exhaustive. Other risks and uncertainties of which AlliancePharma is not currently apprised or that it does not currently deem important could cause actual outcomes or events to differ substantially from those set out in the forward-looking statements.

Readers are cautioned not to accord undue credibility to such forward-looking statements, which are based solely on AlliancePharma's expectations as of the date of this press release. AlliancePharma declines all responsibility to update or revise its forward-looking statements, whether to account for new information or future events or circumstances, unless legally obligated to do so.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, or in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended, nor under any State securities law, and may not be offered for sale or sold in the United States, unless registered in compliance with these laws or dispensed from such registration.

Neither the 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 News Release.

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