Pediapharm Inc.
TSX VENTURE : PDP

Pediapharm Inc.

May 25, 2017 08:30 ET

Pediapharm Completes Private Placement of Units for $5,000,000

MONTREAL, QUEBEC--(Marketwired - May 25, 2017) -

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Pediapharm Inc. (the "Company" or "Pediapharm") (TSX VENTURE:PDP) is pleased to announce it has closed its previously announced non-brokered private placement (the "Offering") of units of the Company (the "Units") in trust, pending receipt of the final approval from the TSX Venture Exchange (the "Exchange").

Pursuant to the Offering, 9346-4626 Québec Inc., a private company operating as Transican (the "Subscriber") subscribed for 14,705,883 Units at a price of $0.34 per Unit, for aggregate proceeds to the Company of $5,000,000. The Subscriber is owned by Mr. Gerard Leduc, a globally known pharmaceutical executive.

"I am very pleased to become an important shareholder of Pediapharm," said Mr. Gerard Leduc, President of Transican. "I believe this Company has a great future with its business model and its recently approved product launches, which will fuel the Company's organic growth. Furthermore, Pediapharm plans on pursuing new deals to keep strengthening its product portfolio."

"We are extremely pleased to have Mr. Gerard Leduc, whose proven track record in the pharmaceutical industry is very impressive, as a strategic investor in Pediapharm," stated Sylvain Chretien, President and Chief Executive Officer of Pediapharm. "This financing allows us to accelerate our business development program execution with the objective of securing new opportunities and accelerating growth from the recent launches of Rupall and Otixal in Canada."

Each Unit is comprised of one (1) common share in the capital of the Company (a "Common Share") and one-half (1/2) of one common share purchase warrant of the Company (a "Warrant"). Each whole Warrant entitles the Subscriber to purchase one (1) Common Share at a price of $0.51 per share until May 24, 2020. No commissions or fees were paid in connection with the Offering.

The gross proceeds of this Offering will be used to secure new business opportunities as well as to accelerate the growth of the Company's recently launched products namely, Rupall™ and Otixal™.

Completion of the Offering is subject to the final approval of the Exchange. As a result of the Offering, the Subscriber will become a new insider of the Company as a holder of more than 10% of the issued and outstanding Common Shares. The Offering has therefore been closed in trust pending the receipt of applicable clearance searches to be conducted by the Exchange which are anticipated to take up to six weeks to obtain.

Pursuant to applicable securities laws, all securities issued pursuant to the Offering are subject to a hold period of four months plus one day following the closing of the Offering.

About Pediapharm Inc.

Pediapharm is the only Canadian specialty pharmaceutical company dedicated to serving the needs of the pediatric community. Its mission is to bring to the Canadian market the latest innovative pediatric products with the objective to improve the health and the well-being of children in Canada. Since its debut in 2008, Pediapharm has entered into numerous commercial agreements with partners from Canada and other countries around the world. The Company's innovative product portfolio includes NYDA®, a breakthrough treatment for head lice; EpiCeram®, a non-steroid emulsion for eczema; naproxen suspension, indicated to treat pain and inflammation due to various conditions, including Juvenile Idiopathic Arthritis; Rupall™, an innovative new allergy medication with a unique mode of action; Otixal™, the first and only antibiotic and steroid combination ear drop available in single, sterile, preservative-free and unit-dose packaging; and Cuvposa™, for severe drooling, which is under review with Health Canada.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and other statements that are not historical, including statements pertaining to the management's expectations of the use of proceeds and the expected timing of the required regulatory approvals. Such forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the results or events predicted in these forward-looking statements. As a result, investors are cautioned not to place undue reliance on these forward-looking statements.

The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking information reflects the current expectations or belief of the Corporation based on information currently available and such information is subject to a number of assumptions, risks and uncertainties including those described under the heading "Risk Factors" in the Company's Annual Information Form (for the year ended March 31, 2016) available on SEDAR at www.sedar.com and other risks associated with being a specialty pharmaceutical company.

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.

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