Life Sciences Institute Inc.
TSX VENTURE : LSN

Life Sciences Institute Inc.

January 26, 2011 17:57 ET

Life Sciences Update on Change of Business

CALGARY, ALBERTA--(Marketwire - Jan. 26, 2011) - Further to the October 19, 2010 press release of LIFE SCIENCES INSTITUTE INC. (the "Corporation" or "Life Sciences") (TSX VENTURE:LSN), the Corporation wishes to provide an update on the status of its Change of Business ("COB").

The COB is comprised of two parts, being the acquisition of certain oil and gas assets (the "Acquisition"), and the disposition of the non-oil and gas assets of the Corporation (the "Disposition"), each as set out in the October 19, 2010 press release. The COB remains subject to the concurrent closing of the two previously announced offerings, the FT Offering and the SFOD Offering, each as defined in the October 19, 2010 press release. There is no assurance that the SFOD Offering, the FT Offering or the COB will be completed.

On December 29, 2010, the Corporation filed an annual information form ("AIF"). The AIF is available on SEDAR (www.sedar.com). The filing of the AIF is a requirement in order for the Corporation to pursue the SFOD Offering through the short-form offering document ("SFOD") of the TSX Venture Exchange ("TSXV").

The Corporation is pleased to announce that it intends to file the SFOD with the TSXV prior to the end of January. Once conditional approval of the SFOD is obtained from the TSXV, Wolverton Securities Ltd., as agent, will commence marketing the SFOD offering. As per TSXV policy 4.6, once TSXV approval is received for the SFOD, the agent will have 60 days to market and sell the SFOD Offering. After the 60 day period is complete, the Company will have until April 29, 2011 to submit final documentation to the TSXV in respect of the COB and the related transactions. In order to proceed with the COB and related transactions, the Corporation requires a minimum of $2,850,000 in gross proceeds from the offerings.

The Corporation intends to use the net proceeds received from the SFOD Offering to cover certain general administrative expenses and certain expenses relative to maintaining certain of the oil and gas assets acquired. In addition, the Corporation intends to use the FT Offering proceeds to complete the 3D/3C seismic survey over the Corporation's land holdings in Saskatchewan and complete the drilling of two of the highest ranked oil targets previously identified with 2D seismic. The Corporation's intended use of proceeds may be varied if doing so is deemed by management to be in the best interests of the Corporation. 

The COB and related matters were approved by the shareholders of the Corporation at the June 3, 2010 shareholders meeting. Details about the COB and related matters can be found in the Corporation's Information Circular dated April 30, 2010, as filed on SEDAR (www.sedar.com).

Forward Looking Statements

Statements in this press release contain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, without limitation, statements with respect to: timing and completion of the COB, the closing of the FT Offering and the SFOD Offering and the approval of the TSX Venture Exchange. Readers are cautioned that assumptions used in the preparation of forward-looking information may prove to be incorrect. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is 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 (many of which are beyond the control of the Corporation) that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration, development and production; delays or changes in plans; competition for and/or inability to retain drilling rigs and other services; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; risks associated to the uncertainty of reserve estimates; governmental regulation of the oil and gas industry, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; the uncertainty of estimates and projections of production, costs and expenses; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; incorrect assessments of the value of acquisitions; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; access to capital; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Corporation does not undertake any obligation to update or revise any forward-looking statements to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

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