LAB Research Closes $21.1 Million Financing to Expand its Canadian Facilities
LAVAL, QC, May 6, 2008 - LAB Research Inc., a Canadian-based global non-clinical contract research organization, announces the execution of the financing agreement entered into on January 31, 2008 with National Bank of Canada Health Group ("NBC"),Â pursuant to which NBC granted the Company a $21.1 million financing to expandÂ its Canadian facilities. Estimated at $40 million, the expansion project willÂ double this site's capacity, thereby increasing its floor space from 87,000 toÂ 170,000 square feet and the vivarium from 36 to 80 rooms. The constructionÂ phase will be completed in the fall of 2008.
This financing covering solely the investments planned for 2008 consistsÂ of $13.7 million mortgage with a 16-year term requiring no principalÂ repayments until March 2009, and a $7.4 million loan to finance equipment,Â repayable over 11 years. LAB Research plans to invest a further $16 million inÂ additional equipment during the coming years. These amounts will be financedÂ through working capital and by way of supplementary financing.Â Â Â Â Â Â
"Increasing our capacity and optimizing its use are amongst LABÂ Research's key success factors. The revenues growth arising from this secondÂ expansion phase will enable us to achieve a critical mass and improve ourÂ profit margin in Canada," stated Luc Mainville, President and Chief ExecutiveÂ Officer of LAB Research.Â Â Â
About LAB Research Inc.Â Â Â
LAB Research is a Canadian global non-clinical contract researchÂ organization that provides contract research services to the pharmaceutical,Â biotechnology, agro-chemical, petrochemical and industrial markets. LABÂ Research supports the development of its clients' products from threeÂ state-of-the-art facilities located in Canada, Denmark and Hungary. LABÂ Research shares trade on the TSX under the symbol "LRI", with 18.1 millionÂ shares outstanding.Â