LAB International enters $7.8 million sale, leaseback transaction

By Jennifer Chiou

New York, Oct. 13 - LAB International Inc. said it entered into a sale and leaseback transaction with Woodcliffe Corp.

The transaction, which is scheduled to close at the end of October, involved the Canadian LAB Research facility for total proceeds of $7.8 million.

LAB expects to have $2.7 million of non-dilutive capital after debt repayment and related fees. As part of the transaction, LAB will lease the property from Woodcliffe over a 20-year term.

"This sale and leaseback transaction allows us to eliminate approximately $4.0 million of interest bearing debt relating to our research facility in Laval, strengthen our balance sheet and provide additional funding for our product development programs," chief financial officer Andrew Reiter said in a news release.

Toronto-based Woodcliffe develops, owns and manages commercial, industrial, retail and residential properties.

LAB is an integrated drug development company in Laval, Quebec. Its subsidiaries are focused on developing therapies for the inhalation market.

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