LAB Research Inc. Completes the Buy Back of its Canadian premises and Closes Concurrent Long-Term Financing



    LAVAL, QC, April 17 /CNW Telbec/ - LAB Research Inc. (TSX: LRI) ("LAB
Research"), a rapidly growing non-clinical contract research organization with
operations in North America and Europe, announced today the closing of the buy
back transaction with Laval Armand Properties Ltd., an affiliate of Woodcliffe
Corporation ("Woodcliffe"), to purchase the property currently occupied by LAB
Research in Laval, Canada. The property was subject, in 2005, to a
sale-leaseback transaction pursuant to which LAB Research, which was owned by
LAB International at that time, sold the property to Woodcliffe and entered
into a lease for the property expiring in January 2027.
    The purchase price for the property is $23 million. Of this amount,  
$10.3 million was deducted from the purchase price for amounts owing by
Woodcliffe to LAB Research, consisting mainly of construction costs funded by
LAB Research for the expansion of the property completed in December 2006. The
balance of the purchase price has been covered by a mortgage loan from
National Bank of Canada, Health Group ("National Bank") of $17 million. Other
credit facilities totalling $9.95 million have also been made available to LAB
Research by National Bank.
    "Our business model relies on our ability to periodically expand our
infrastructure to capitalize on market demand for our services. Hence, buying
back our Canadian building became a strategic requirement following our
successful spin-off from LAB International last year. We will now have full
control over the future development and expansion of our Canadian facilities
as we make significant progress in maximizing utilization of the newly created
capacity. The original sale-leaseback transaction had been implemented by LAB
International to support its cash burning R&D initiatives. We are proud to
have re-purchased the building at terms that will improve our short and
long-term financial performance." said Luc Mainville, President and Chief
Executive Officer of LAB Research. "Also, the loan secured from National Bank
will contribute to increase our liquidities by $5.8 million and provide
additional financial resources to help attain our other 2007 corporate
priorities."

    About LAB Research Inc.

    LAB Research is a non-clinical contract research organization that
provides contract research services to the pharmaceutical, biotechnology,
agro-chemical and industrial markets. LAB Research supports the development of
its customers' products from four state-of-the-art facilities located in
Canada, United States, Denmark and Hungary. LAB Research's shares trade on the
TSX under the symbol "LRI" with 18.0 million shares outstanding.
    %SEDAR: 00023798EF




For further information:

For further information: Luc Mainville, Chief Executive Officer, LAB
Research Inc., (450) 973-2240, Ext.: 1206, mainvillel@labresearch.com; Media
and Investor: Dominic Sicotte, Echoes Financial Network Inc., (866) 633-9551,
ext. 101, (514) 842-9551, dsicotte@echoesfinancial.com

Organization Profile

LAB RESEARCH INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890