LAB RESEARCH INITIATES A STRATEGIC REVIEW PROCESS AND AMENDS ITS CANADIAN BANK AGREEMENT
www.labresearch.com Toronto Stock Exchange Symbol: LRI
LAVAL, QC, Oct. 4 /CNW Telbec/ - LAB Research Inc. ("LAB Research" or the "Company") (TSX: LRI), a Canadian-based global non-clinical contract research organization, today announced it has launched a strategic review process to review all strategic alternatives available to the Company. Samson Bélair/Deloitte & Touche have been retained as lead financial advisors to assist the Company. Such alternatives may include a financing, a recapitalization, a strategic partnering, a merger or the sale of all or part of the assets of the Company (the "Strategic Process").
The Company also announced that its main Canadian lender has agreed to increase the Company's operating credit facility from $2,000,000 to $4,000,000 and to postpone capital instalments on its long term debt until December 17, 2010 to facilitate the execution of the Strategic Process.
The increased operating credit facilities should be sufficient to allow the Company to finance its operations and complete the Strategic Process. In the event that the Company is unable to complete a transaction before December 17, 2010, the Company will have to conclude further arrangements with its main Canadian lender with respect to the funding of its operations and the payment of the postponed instalments.
"We are pleased to have secured additional support and flexibility from our main financial stakeholder as we embark into this Strategic Review Process". Commented Mr. Luc Mainville, President and CEO of LAB Research. "For the last two years, we have outperformed the industry in terms of revenue growth despite limited financial resources and flexibility. In 2010, our European sites are performing well and thanks to continued market share gains have remained self-funded. Our Canadian site will benefit the most from the new banking arrangements and the Strategic Process. Management hopes that through this Strategic Process LAB Research will strengthen its commercial platform, and maximize shareholders value". Added Mr. Mainville.
The Company cautions shareholders that there is no assurance whether it will receive proposals from third parties as a result of the Strategic Process or implement any proposal received. The Company does not intend to provide updates on the Strategic Process unless a definitive agreement is reached or a determination is made not to pursue any transaction.
Finally, LAB Research also announces the resignation of Mr. Garth Likes and Mr. Yvan Landry from its Board of Directors. Both Mr. Likes and Mr. Landry are stepping down to pursue other professional obligations. The Company should be announcing new Members joining its Board before year-end.
Certain statements in this document are forward looking and prospective. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers of this document are cautioned not to place undue reliance on our forward-looking statements as a number of factors could cause future results, conditions, actions, or events to differ materially from the operating target, expectations, estimates, or intentions expressed in the forward-looking statements. For additional information on these and other factors, see the reports filed by LAB Research with Canadian securities regulators.
Forward-looking statements reflect our current views with respect to future events and are based upon what we believe are reasonable assumptions and subject to risks and uncertainties. These forward-looking statements represent our estimates and assumptions only as at the date of this document. We undertake no obligation and do not intend to update or revise these forward-looking statements, unless required by law.
About LAB Research Inc.:
LAB Research is a Canadian global non-clinical contract research organization that provides contract research services to the pharmaceutical, biotechnology, agro-chemical, petro-chemical and industrial markets. LAB Research supports the development of its customers' products from three state-of-the-art facilities located in Canada, Denmark and Hungary.
LAB Research's shares trade on The Toronto Stock Exchange ("TSX") under the symbol "LRI", with 52.7 million shares outstanding.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of LAB Research 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.
%SEDAR: 00023798EFFor further information: visit LAB Research's website at www.labresearch.com, or contact: Luc Mainville, Chief Executive Officer, Tel: (450) 973-2240 (ext. 1206), email@example.com; Frédéric Dumais, Partner, Jasmin-Dumais Financial Communications, Tel :(514) 862-1251, firstname.lastname@example.org