On June 28, 2010, LAB Research Inc. (TSX: LRI) announced that it had entered into an equity line facility agreement (ELFA) with Dutchess Opportunity Caymand Fund Ltd., a fund managed by Dutchess Capital Management, II LLC in order to provide for an equity line of credit to the Corporation. Under the terms of the ELFA, Dutchess has committed to provide up to $10 million of capital during the next two years, at LAB Research's discretion, through the purchase of newly issued common shares.
In connection with the ELFA, the Corporation filed a preliminary short-form base shelf prospectus on June 28, 2010 and a final base shelf prospectus on August 30, 2010 with the securities authorities in each province and territory of Canada. These filings allow LAB Research to qualify the shares to be issued under the ELFA and make offerings of common shares, preferred shares, debt securities, warrants, units or combination thereof for an amount of up to $25 million during the next 25 months.
LAB Research Inc. was advised in the negotiation of the ELFA by Fasken Martineau with a team led by Michel Boislard and that included Frédéric Boucher and Caitlin Rose.