Paragon Pharmacies Limited
TSX VENTURE : PGN

Paragon Pharmacies Limited

April 30, 2008 20:57 ET

Paragon Announces Completion of Successful Negotiations With Canterbury Park Capital LP

KELOWNA, BRITISH COLUMBIA--(Marketwire - April 30, 2008) - Paragon Pharmacies Limited ("Paragon" or the " Company") (TSX VENTURE:PGN) today reported that it has concluded successful negotiations with Canterbury Park Capital LP ("Canterbury") to retain the unused convertible debenture funds, and is pleased to report that a Memorandum of Understanding has been signed which provides the strong foundation for the Company to continue with its aggressive growth strategy.

Craig Cameron, President and CEO of Paragon commented, "We are pleased with the results of the negotiations and the commitment that Canterbury has shown to Paragon. The retention of these funds allows Paragon to continue with the execution of its business and acquisition plan."

"We believe the agreement reached today with Paragon Pharmacies is positive for all shareholders of the Company, as it continues with the execution of its business plan" commented Martin Weinberg, President of Canterbury.

The amendments to the convertible debenture notes (subject to regulatory and other approvals) include:

- Access to $4 million of debenture funds without matching senior debt.

- Favourable adjustment to Paragon on the definition of pre-approved transactions.

- Amended interest payment terms including: (i) interest being paid on an annual basis with year one interest being paid on May 5, 2008 in common shares; (ii) the interest rate on the unspent portion being increased by 5%; and (iii) the interest on the spent portion continuing to accrue on the original terms.

- The elimination of the contingent liability noted in Note 20 of Paragon's interim financial statements for the three and six month periods ended February 29, 2008.

Cameron commented, "The retention of the funds along with the amended terms will further enhance Paragon's ability to execute its acquisition strategy."

Paragon is headquartered in Kelowna, British Columbia and currently employs over 500 full and part time staff in its stores and offices. The Corporation owns and operates 18.5 retail pharmacies, 3 central fill pharmacies, and 2 home healthcare stores in BC, Alberta, and Manitoba.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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