LSL PHARMA GROUP ENTERS INTO NON-BINDING AGREEMENT TO ACQUIRE A QUEBEC-BASED COMPETITOR

• Transaction expected to add $8-10 million of revenues, expand capacity and service offering
• Transaction is highly complementary and will enable significant synergies
• Closing expected to take place in Q3-25

BOUCHERVILLE, QC, July 31, 2025 /CNW/ - LSL PHARMA GROUP INC. (TSXV: LSL) ("the Company" or "LSL Pharma"), a Canadian integrated pharmaceutical company, is pleased to announce that it has entered into a Letter of Intent ("LOI") to acquire a privately held, Quebec-based competing contract manufacturer specialized in the formulation and production of liquid and semi-solid natural and cosmetic products ("Target Co"). Target Co. and its shareholders are at arm's length with LSL Pharma.

Total consideration for the acquisition will range between $3 million and $3.3 million and involves a nominal cash payment as well as assumption of Target Co.'s bank debt (the "Transaction"). The cash portion will be funded by the proceeds from the recently announced bank financing. The Transaction will enable LSL Pharma to realize material gain on acquisition. Once fully integrated, the Transaction is expected to increase LSL Pharma's revenues by more than 20% on an annual basis by contributing $8-10 million to its consolidated revenues. LSL Pharma anticipates closing the Transaction by the end of Q3-2025.

Target Co. is based in the province of Quebec, manufactures and packages liquid and semi-solid products for the Canadian and international markets. The acquisition of Target Co. is highly complementary to LSL Pharma's other contract development and manufacturing operations ("CDMO"), and will help strengthen existing client relationships as well as expand capacity and service offering.

"Following the highly successful acquisition of Virage Santé and Dermolab Pharma last year, we look forward to executing this additional transaction to further expand our CDMO operations, manufacturing capabilities and customer base as more and more Canadian companies are looking for local solutions to their supply chain requirements," said François Roberge, President and Chief Executive Officer of LSL Pharma. "Target Co. has an excellent reputation as a contract manufacturer. We expect this transaction to be accretive once fully integrated, to generate significant synergies with our existing operations as well as leverage our head office infrastructure", added Mr. Roberge.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

The press release may contain forward-looking statements as defined under applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "continue" or similar expressions. Forward-looking statements are based on a number of assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that could cause actual results or performance to differ materially from those expressed or implied in such forward- looking statements. These risks and uncertainties include, but are not limited to, those identified in the Corporation's filings with Canadian securities regulatory authorities, such as legislative or regulatory developments, increased competition, technological change and general economic conditions. All forward-looking statements made herein should be read in conjunction with such documents.

Readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that any of the events referred to in the forward-looking statements will transpire, and if any of them do, the actual results, performance or achievements of the Corporation may differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date of this press release. The Corporation does not undertake to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

ABOUT LSL PHARMA GROUP INC.

LSL Pharma Group Inc. is a Canadian integrated pharmaceutical company specializing in the development, manufacturing and commercialization of high-quality sterile ophthalmic pharmaceutical products, as well as pharmaceutical, cosmetic and natural health products in solid, semi-solid and liquid dosage forms. Companies forming part of LSL Pharma Group are Steri-Med Pharma Inc., LSL Laboratory Inc., Virage Santé Inc. and Dermolab Pharma Ltd. For further information, please visit our website at www.groupelslpharma.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Groupe LSL PHARMA INC.

François Roberge, President and Chief Executive Officer, (514) 664- 7700, E-mail: [email protected] OR Luc Mainville, Executive VP & Chief Financial Officer, [phone] ext.: 301, E-mail : [email protected]