The financing consists of a $13.7 million mortgage with a 16-year term requiring no capital repayments until March 2009, and a $7.4 million loan to finance equipment, repayable over 11 years. Completion of the financing is subject to customary conditions including the execution of the definitive agreements.
The expansion will result in almost doubling LAB Research’s Canadian capacity (from 87,000 ft(2) to 170,000 ft(2)) and will increase the existing vivarium rooms from 36 to 80 as well as provide significant capacity for inhalation toxicology.
Luc Mainville, president and CEO of LAB Research, said: “The financing will provide us with the required capital to complete the expansion of our Canadian operations in accordance with the previously announced timelines.”