Athyrium Capital Announces Holdings of Shares of HLS Therapeutics Following Completion of Reverse Takeover Transaction

NEW YORK, March 15, 2018 (GLOBE NEWSWIRE) -- Athyrium Capital Management, LP announced that on March 12, 2018, HLS Therapeutics Inc. completed its reverse takeover transaction with Automodular Corporation to form HLS Therapeutics (the “Corporation”). In connection with the transaction, funds managed by Athyrium Capital Management acquired ownership, control and direction over an aggregate of 4,125,000 common shares and warrants to purchase an aggregate of 525,409 common shares of the Corporation. The warrants have an exercise price of US$10.13 per common share and expire on August 11, 2020, unless the Corporation is still listed at such time, in which case the maturity date will be automatically extended to August 11, 2021.

The common shares were issued at a deemed issue price of US$9.09 per common share and represent approximately 12.8% of the issued and outstanding common shares of the Corporation. Assuming full exercise of the warrants, the fund would hold an aggregate of 4,650,409 common shares, representing approximately 14.2% of the then issued and outstanding common shares.

The common shares and warrants were acquired for investment purposes and the fund may or may not purchase or sell securities of the Corporation, or exercise its warrants, in the future on the open market or in private transactions, depending on market conditions and other factors. The fund currently has no other plans or intentions that relate to its investment in the Corporation. Depending on market conditions, general economic and industry conditions, the Corporation’s business and financial condition and/or other relevant factors, the fund may develop other plans or intentions in the future relating to one or more of the above items.

A copy of the early warning report filed in connection with the investment will be available on the Corporation’s profile on SEDAR at www.sedar.com or may be obtained by contacting Andrew Hyman at (212) 402-6925.

Source: Athyrium Opportunities II Co-Invest 1 LP