Victoria Square Ventures Inc. acquires shares of Bellus Health Inc. under rights offering standby commitment



    MONTREAL, Sept. 10 /CNW Telbec/ - This press release is issued by
Victoria Square Ventures Inc. ("VSVI") as required by Canadian provincial
securities legislation. VSVI announces that it has acquired ownership of
21,621,621 common shares of Bellus Health Inc. ("Bellus"), at $0.185 per
share, representing approximately 20.3% of the outstanding common shares of
Bellus. VSVI acquired the common shares in connection with a rights offering
(the "Rights Offering") to holders of Bellus' common shares. In connection
with the Rights Offering, and as previously disclosed, VSVI entered into a
standby purchase agreement (the "Standby Agreement") with Bellus, pursuant to
which VSVI agreed to purchase such common shares that were not otherwise
purchased under the Rights Offering for a maximum subscription price of
$4,000,000. Bellus entered into a substantially equivalent agreement with
Vitus Investments III Private Limited.
    After completion of the transaction described above, VSVI currently owns
28,519,539 common shares of Bellus, representing approximately 26.8% of the
outstanding common shares of Bellus, 21,672,000 Series A 6% Cumulative
Convertible Preferred Shares of Bellus (the "Preferred Shares") and
$10,807,500 principal amount of senior convertible notes (the "Senior Notes").
    If the Preferred Shares, Senior Notes and all dividends and interest
payable in respect thereof, are converted, VSVI would own an aggregate of
approximately 178,756,000 common shares of Bellus, representing approximately
69.6% of the outstanding common shares of Bellus, before giving effect to any
common shares of Bellus issuable upon conversion or exercise of all other
outstanding convertible securities of Bellus.
    If all of the other outstanding convertible notes of Bellus, Series A 6%
Cumulative Convertible Preferred Shares of Bellus, the interest and dividends
payable thereon and certain other obligations of Bellus, are converted on the
same basis as above, VSVI would own approximately 29.2% of the outstanding
common shares of Bellus.
    VSVI acquired the common shares for investment purposes and, in
accordance with applicable securities laws, it may increase or decrease its
investment in Bellus depending on market conditions and other relevant
factors.




For further information:

For further information: Peter Kruyt, President and Chief Executive
Officer, Victoria Square Ventures Inc., (514) 286-7400

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VICTORIA SQUARE VENTURES INC.

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