LAB International Inc.

October 27, 2006 07:18 ET

LAB International Announces Bought Deal for its Residual Ownership Position in LAB Research Inc.

LAVAL, QUEBEC--(CCNMatthews - Oct. 27, 2006) -

This News release is not for dissemination in the United States or to any United States News Services.

LAB International Inc. (TSX:LAB)(FRANKFURT:LD9.F)(XETRA:LD9.DE) ("LAB"), a drug development company focused on developing therapies for the inhalation market, today announced that it has entered into an agreement with a syndicate of underwriters led by Desjardins Securities Inc. (The "Underwriter") to sell on a private placement "bought deal" basis, 6,392,857 special warrants at $4.05 per special warrant for aggregate gross proceeds of $25,891,070.85. Each special warrant entitles the holder to acquire from LAB International one common share of LAB Research Inc. ("LRI"), at any time before the date which is four months and a day after the closing of the offering. The transaction is expected to close on or before November 9, 2006 and is subject to final regulatory authority's approval. LRI has committed to file a preliminary short form prospectus qualifying the LRI common shares distributable on exercise of the special warrants by November 15, 2006.

"The sale of our residual ownership position in LAB Research demonstrate our strong commitment to put the necessary resources in place to advance as quickly as possible our existing late-stage drug development programs and the new programs that will be added following the completion of the PharmaForm acquisition" commented Dr. Halvor Jaeger, CEO of LAB International.

About LAB International

LAB is a drug development company focused on the growing multi-billion dollar inhalation market. Its lead product, for the treatment of breakthrough cancer pain, is a fast-acting Fentanyl formulation delivered using the Company's TAIFUN® dry powder inhaler platform. Its pipeline also includes therapeutics for asthma, COPD, and growth hormone deficiencies.

LAB's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "LAB", on the Frankfurt Regulated Unofficial Market under the symbol "LD9.F" and on XETRA under the symbol "LD9.DE" with 73.2 million shares outstanding.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of LAB International Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

Contact Information

  • LAB International Inc.
    Frederic Dumais
    Vice-President, Investor Relations
    (514) 290-5938
    (450) 973-2259 (FAX)