Toronto Stock Exchange Symbol: LRI
LAVAL, QC, April 29 /CNW Telbec/ - LAB Research Inc. ("LAB Research" or
the "Company") (TSX: LRI), a Canadian-based global non-clinical contract
research organization, today announced having secured a $7.5 million loan from
Investissement Québec, a Quebec government agency, as part of its "Renfort"
program. The proceeds will be used for general working purposes. The loan is
expected to be disbursed in various tranches before the end of May 2009. The
disbursement of some tranches will be subject to various conditions.
The Renfort program aims at providing working capital support to growing
and profitable companies. Under the terms of the agreement, repayment of
principal is scheduled to start during the first quarter of 2011. The loan
which will bear interest at a floating rate will be secured by the Company's
Canadian assets. Finally, subject to regulatory approvals (including the
approval of the Toronto Stock Exchange ("TSX")), LAB Research will also issue
to Investissement Québec warrants to acquire 897,290 common shares of LAB
Research at a price corresponding to the weighted average trading price of the
Company's common shares on the TSX for the five days preceding the issuance of
the warrants and expiring 3 years and 9 months after their issuance.
"We are pleased to have received this loan from Investissement Québec. It
allows us to immediately strengthen our working capital which was partly used
to finance our last Canadian expansion. This marginally dilutive financing
will also help negotiations aimed at solving the covenant breaches on the
loans granted by our Canadian bank" said Mr. Luc Mainville, Chief Executive
Officer and President of LAB Research. "Since the beginning of 2009, we have
focused our attention on solving each and every corporate issues negatively
impacting our Company. Our liquidity situation having been addressed
successfully, we are now concentrating our efforts on improving each of our
site's performance. We look forward to report on the progress made to date
when disclosing our first quarter of 2009 results scheduled to be released
early May 2009 and we remain more than ever solely committed to the continuous
improvement of our financial performance and profitability over the coming
quarters" added Mr. Mainville.
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 TSX under the symbol "LRI", with 18.1
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: Luc Mainville, Chief Executive Officer, (450)
973-2240 (ext. 1206), firstname.lastname@example.org, www.labresearch.com;
Frédéric Dumais, Partner, Jasmin-Dumais Financial Communications, (514)