10:15 AM EST, 12/18/2024 (MT Newswires) -- LSL Pharma Group ( LPGIF ) on Wednesday said it has acquired Dermolab Pharma, a contract manufacturing company that manufactures liquid, and semi-solid products, based in Ste-Julie, Quebec.

The total consideration for the transaction includes the renewal of Dermolab's operating line of credit and term loan totaling a maximum of $3 million and a cash payment of $955,000 on closing.

"We are excited about the opportunity to add Dermolab to our contract manufacturing division. This acquisition fits with LSL Pharma's ( LPGIF ) growth strategy of diversifying its service offering and increasing its manufacturing capabilities to better serve the pharmaceutical sector, as well as to expand our activities to the cosmetic market", said Francois Roberge, President and CEO.

According to the company, the acquisition increases LSL Pharma's ( LPGIF ) contract development and manufacturing activities, and creates synergies with its other subsidiaries, LSL Laboratory, Steri-Med Pharma and Virage Sante.

LSL Pharma ( LPGIF ) also closed a $2 million concurrent debt financing on Dec. 17. The notes are unsecured, bear interest at a blended rate of 13% and mature on Jan. 1, 2028. Two million warrants were issued with the notes, with each warrant entitling the holder to purchase one share, subject to certain conditions.

The company's shares were last seen up $0.01, to $0.38, on the TSX Venture Exchange.

Price: 0.38, Change: +0.01, Percent Change: +2.70