Labopharm begins proposed public offering of common stock

Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced that it has commenced an underwritten public offering of up to US$20,000,000 of units, with each unit to be comprised of one common share and a warrant to purchase a portion of a common share.

The offering is being conducted in the United States pursuant to the Company's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and in Canada pursuant to a final short form base shelf prospectus filed with the securities regulatory authorities in each of the provinces of Canada. The number of units to be issued, the price of each unit, the portion of a common share underlying each warrant and the exercise price per warrant will be determined at the time of pricing the offering.

Deutsche Bank Securities will act as sole book-running manager for the offering and Canaccord Adams will act as co-manager for the offering. The Company expects to grant the underwriters participating in the offering a 30-day option to purchase up to an additional 15 percent of the number of common shares and warrants underlying the units sold pursuant to the offering to cover over-allotments, if any. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

SOURCE Labopharm Inc.


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