Life Pharmacy secures $5.25 mil investment

Life Pharmacy signs documentation to secure $5.25 million investment

Life Pharmacy Limited (NZX: LPL) today announced that it has signed formal documentation for the transaction with Segoura Limited which was announced on 24 May 2007.

Segoura nominee, LPL Trustee Limited (the Trust), which is backed by Andrew Bagnall and associates, will subscribe $5,250,000 for a total of 7 million shares in Life Pharmacy at a price of $0.75 per share.

Under the terms of the agreement Life Pharmacy will grant the Trust an option to subscribe for up to 50.01 percent of Life Pharmacy’s entire issued share capital for a period of up to two years at a price of $0.75 per share in year one and $0.825 per share in year two.

The agreement is conditional upon (amongst other things):

1. shareholder approval

2. obtaining waivers from the Takeovers Code and the NZX Listing Rules

3. obtaining a ruling from the NZX to allow the Trust to appoint two directors for two years and

4. Life Pharmacy adopting a new constitution giving shareholders the right to appoint directors proportionate with their voting right in Life Pharmacy, consistent with NZX Listing Rule 3.3.5.

Liz Coutts, Chair of Life Pharmacy, says, “We are delighted to have concluded this agreement, which will inject substantial equity into Life Pharmacy. We are equally pleased for the company to be associated with Andrew Bagnall, who has considerable expertise in franchisee businesses like ours. I’m confident that his investment and expertise will bring real value to the company and its shareholders. This is a substantial investment which will enable Life Pharmacy to grow and to achieve the benefits of scale.”

The transaction will be put to shareholders at Life Pharmacy’s Annual Meeting, which will be held at Level 1, Building B, 600 Great South Road, Auckland on Thursday 26 July 2007 at 9.30am. A Notice of Meeting will be circulated to all shareholders in due course.

The Annual Meeting was to be held on Thursday 28 June 2007; however, the Board has moved the date out to allow shareholders to consider, and if appropriate approve, the proposed transaction with the Trust.

About Life Pharmacy
Life Pharmacy Limited owns the Life Pharmacy brand and holds a 49 percent shareholding in 17 pharmacy companies, representing 16 of the 21 Life Pharmacy stores operating throughout New Zealand. Stores are located in Auckland, Hamilton, Bay of Plenty, Wellington and Christchurch.

ENDS

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