LAVAL, QC, March 8 /CNW Telbec/ - LAB Research Inc. (TSX: LRI) ("LAB
Research"), a rapidly growing non-clinical contract research organization with
operations in both North America and Europe, announced today that it has
entered into an agreement with Laval Armand Properties Ltd., an affiliate of
Woodcliffe Corporation ("Woodcliffe"), to purchase the property currently
occupied by LAB Research in Laval. The property was subject, in 2005, to a
sale-leaseback transaction pursuant to which LAB Research sold the property to
Woodcliffe and entered into a lease for the property expiring in January 2027.
The purchase price for the property is $23,000,000 subject to usual
adjustments. Approximately $10,000,000 of this amount will be deducted from
the purchase price for amounts owing by Woodcliffe to LAB Research, consisting
mainly of construction costs incurred by LAB Research for the expansion
project of the property which was completed in late 2006. The balance of the
purchase price shall be covered by a mortgage loan from National Bank of
Canada, Health Group.
The transaction is conditional upon closing conditions to be met by each
party, including, among others, obtaining a release from the current secured
lender on the property. Completion of the transaction is scheduled to occur at
the latest on April 16, 2007.
"This transaction will have a positive impact on our annual cash flow,
EBITDA as well as our net earnings starting as early as 2007. In addition to
the clear financial benefits of this transaction, we will now have full
control over the future development and expansion of our Canadian facilities"
declared Luc Mainville, President and Chief Executive Officer of LAB Research.
"We are acquiring a significant state-of-the-art scientific plant in the heart
of a well renowned biotech pole in Canada", added Mr. Mainville.
About LAB Research Inc.
LAB Research is a non-clinical contract research organization (CRO) that
provides contract research services to the pharmaceutical, biotechnology and
agro-chemical market. LAB Research supports the development of its customers'
products from four state-of-the-art facilities located in Canada, the United
States, Denmark and Hungary. LAB Research's shares trade on the TSX under the
symbol "LRI" with 18.0 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.
For further information:
For further information: LAB Research Inc.: Luc Mainville, President and
CEO, (450) 973-2240, ext.: 1206, firstname.lastname@example.org;
www.labresearch.com; Echoes Financial Network Inc: Dominic Sicotte, President,
(866) 633-9551, (514) 842-9551, email@example.com;