Facility expansion expected to be completed by fall 2008
LAVAL, Qc, Jan. 31 /CNW Telbec/ - LAB Research Inc. ("LRI" or
"LAB Research") ("TSX: LRI"), a Canadian based global non-clinical contract
research organization, is pleased to announce that it has entered into an
agreement with respect to a $21.1 million financing from National Bank of
Canada Health Group ("NBC") to support its ongoing $40 million Canadian
expansion expected to be completed by fall 2008.
The financing consists of a $13.7 million mortgage with a 16-year term
requiring no capital repayments until March 2009, and a $7.4 million loan to
finance equipment, repayable over 11 years. The remaining amount required for
LAB Research's expansion will be financed through working capital. LRI plans
to invest the first $24 million of the $40 million project cost in 2008. The
residual $16 million will be invested for the purchase of equipment over the
following three years. Other terms such as interest rates and covenants are in
line with the existing $19.4 million financing secured from NBC in April 2007
for the buyback of the company's Canadian facility. Completion of the
financing is subject to customary conditions including the execution of the
definitive agreements. As announced previously, the expansion will result in
almost doubling LAB Research's Canadian capacity (from 87,000 ft(2) to
170,000 ft(2)). The construction is expected to be completed by fall 2008 and
will increase the existing vivarium rooms from 36 to 80 as well as provide
significant capacity for inhalation toxicology.
"The financing will provide us with the required capital to complete the
expansion of our Canadian operations in accordance with the previously
announced timelines", stated Luc Mainville, President and CEO of LAB Research.
"As we focus on delivering the added capacity in Canada to accelerate revenue
growth in the current fiscal year, we are increasing our efforts to maximize
utilization of our newly created capacity in Europe", added Mr. Mainville.
About LAB Research Inc.
LAB Research is a 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 TSX under the symbol "LRI", with 18.1 million shares outstanding.
For further information:
For further information: Luc Mainville, Chief Executive Officer, LAB
Research Inc., (450) 973-2240, Ext.: 1206, firstname.lastname@example.org; Media
and Investor: Dominic Sicotte, Echoes Financial Network Inc., (866) 633-9551,
(514) 842-9551, email@example.com