HLS Therapeutics Announces $43,500,000 Million Bought Deal Offering

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ETOBICOKE, ON, May 14, 2019 /CNW/ -  HLS Therapeutics Inc. ("HLS" or the "Company") HLS today announced that it has entered into a bought deal agreement with GMP Securities L.P. and Bloom Burton Securities Inc. (together, the "Lead Underwriters"), pursuant to which the Lead Underwriters have agreed to purchase 2,718,750 common shares of the Company (the "Common Shares") at a price of $16.00 per Common Share (the "Issue Price") for gross proceeds of $43,500,000 (the "Offering"). In addition, the underwriters of the Offering will have the option, exercisable until 30 days after the closing date, to acquire up to an aggregate of 407,813 additional Common Shares at the Issue Price to cover over-allotments, if any (the "Over-Allotment Option"). If the Over-Allotment Option is exercised in full, the total gross proceeds of the Offering will be $50,025,008.

The Common Shares will be offered by way of a short form prospectus to be filed in in each of the provinces of Canada, except Quebec, and in the United States by way of private placement pursuant to the exemption from registration provided for under Rule 144A of the United States Securities Act of 1933, as amended, and in such other jurisdictions outside of Canada and the United States as are agreed to by the Company and the Lead Underwriters, in each case provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction and that the Company will not be or become subject to any continuous disclosure obligations in such jurisdiction. The Offering is scheduled to close on or about June 5, 2019 and the net proceeds of the Offering will be used for business development activities to support the launch of HLS's growing pipeline of products and for working capital and general corporate purposes.

The Offering is subject to the receipt of all necessary regulatory and stock exchange approvals. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

ABOUT HLS THERAPEUTICS INC.

Formed in 2015, HLS is a specialty pharmaceutical company focused on the acquisition and commercialization of late stage development, commercial stage promoted and established branded pharmaceutical products in the North American markets. HLS's focus is on products targeting the central nervous system and cardiovascular therapeutic areas. HLS's management team is composed of seasoned pharmaceutical executives with a strong track record of success in these therapeutic areas and at managing products in each of these lifecycle stages

FORWARD LOOKING INFORMATION

This release includes forward-looking statements regarding HLS and its business, including the use of the net proceeds of the Offering and the anticipated closing date. Such statements are based on the current expectations and views of future events of HLS's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements, including, among others, statements with respect to the terms of the Offering and HLS's ability to successfully complete the Offering, statements with respect to HLS's pursuit of additional product and pipeline opportunities in certain therapeutic markets, statements regarding growth opportunities and expectations regarding financial performance. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting HLS, including risks relating to the Offering, risks relating to the specialty pharmaceutical industry, risks related to the regulatory approval process, economic factors and many other factors beyond the control of HLS. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause HLS's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks and assumptions associated with this release can be found in the Company's Annual Information Form dated April 1, 2019, which has been filed on SEDAR and can be accessed at www.sedar.com. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and HLS undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE HLS Therapeutics Inc.

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