AlliancePharma Announces Transformative Acquisitions and a Material Investment from Persistence Capital Partners

Materially Expands Presence in Pharmacy Services and Pharmaceutical Solutions Markets

Persistence Capital Partners (“PCP”) is pleased to announce that it has made a material investment in AlliancePharma Inc. (“AlliancePharma”, the “Company”) (TSXV: APA) to facilitate the Company’s acquisition growth strategy. The Company is in the midst of several transformative acquisitions having entered into agreements to acquire three companies. PCP’s investment will be used to both complete the transactions and strengthen the Company’s balance sheet for further organic and acquisitive growth. Pro-forma these acquisitions, AlliancePharma will have approximately $50 million in revenues, a workforce of approximately 100 employees and a network of approximately 750 allied health professional contractors.

Commenting on the investment, Stuart M. Elman, Managing Partner of PCP, said, “We are delighted to support the growth of AlliancePharma as it embarks on this exciting phase of its development, and to partner with talented entrepreneurs like Marc Lemieux and the management team at AlliancePharma.” Concurrent with this announcement, Mr. Elman has agreed to join the board of directors of AlliancePharma.

Marc Lemieux, President & Chief Executive Officer of AlliancePharma added, “We are delighted to announce our new relationship with PCP. As a strategic shareholder, we believe that PCP will contribute to our growth strategy. These three transformative acquisitions are essential to the strategy of AlliancePharma. Given the aging demographics of Canada, and the increasing pressures on the healthcare system, it is our belief that pharmacies will play an ever-increasing role in the healthcare system. With these acquisitions, AlliancePharma is well-positioned to provide a significantly expanded range of services to our pharmacy and pharmaceutical clients.”

Transaction Highlights

Acquisitions

AlliancePharma has entered into acquisition agreements with:

• ProJ Pharma (“ProJ”), a leader in the pharmacist staffing market in Quebec, a significant complement to the Company’s existing business;
• Pharmapar and BioMed Pharma (“Pharmapar”), a leading generic medication distributor in the province of Quebec; and
• LIV Communication (“LIV”), a leading medical communications agency for pharmaceutical firms

As part of these transactions, the leaders of each of the acquired entities will play an important role in continuing the growth and development of each of their businesses within AlliancePharma, and have agreed to take a material portion of the consideration in stock of AlliancePharma

Scope of Services

Following these acquisitions, the Company has regrouped its activities into two segments to better reflect its focus on the customers:

• Pharmacy Services, which provides a range of services to pharmacies and pharmacists, including staffing, generic medication, and related services; and
• Pharmaceutical Solutions, which provides a range of communications, training and other services to pharmaceutical firms in Canada.

Closing of the PCP investment is subject to certain conditions, including final approval by the TSX Venture Exchange, and the creation and issuance of the Preferred Shares.

About AlliancePharma

AlliancePharma is a leading solution and service provider to the pharmaceutical market. Today it is a respected name for quality and expertise among pharmacists. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.alliancepharmainc.ca and on SEDAR at www.sedar.com.

About Persistence Capital Partners

Persistence Capital Partners is a private equity fund exclusively focused on high-growth opportunities in the healthcare field. With deep healthcare industry expertise, PCP aims to create significant long-term capital appreciation for its investors by identifying and developing attractive investment opportunities in the Canadian healthcare market.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release from AlliancePharma contains forward-looking statements about the acquisition of all equity securities in planned acquisitions by AlliancePharma and about strategic financing from PCP. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target, and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, predict, could, expect, intend, may, plan, seek, should, strive, and will. By their nature, forward-looking statements require us to make estimates and assumptions and express opinions based on current conditions and anticipated developments, as well as other factors that Management may deem appropriate under the circumstances. There is inherent uncertainty and significant risk in these estimates, assumptions, and opinions, particularly of a commercial, economic, and competitive nature, and they are therefore subject to change. AlliancePharma cannot guarantee that these estimates, assumptions, and opinions will prove to be accurate.

This press release contains forward-looking statements with regard to the following: the financial, cash flow, and growth prospects of the Corporation following the acquisitions; certain strategic benefits and operational synergies; corporation management following the merger; the anticipated closing date for the planned acquisitions; the anticipated earnings of AlliancePharma and the acquired entities; and the securing of financing from PCP. The pro forma information in this press release must not be construed as necessarily reflecting what the actual financial and other operating results would have been if AlliancePharma and acquisitions had operated together as a single unit during the cited periods.

Numerous risks and uncertainties may cause the actual outcomes of the merged Corporation to differ substantially from the estimates, beliefs, and assumptions expressed or implied in the forward-looking statements, specifically with regard to the following: achievement of expected outcomes, including growth in operating revenue as a result of undertakings by the merged Corporation; heightened competition from existing or new market competitors; changes to the economic situation, including inflation or deflation; variations in interest or exchange rates or in the price of derivatives or inputs; inability to achieve desired outcomes in labor negotiations; inability to attract and retain key employees or plan efficiently for succession needs; damage to the reputation of the brands promoted by the merged Corporation; the impact of new or amended legislation; changes in regulatory requirements that affect the merged Corporation, including changes to fiscal laws and regulations or to fee structures; new accounting pronouncements or changes to current accounting practices; the possibility that the merged Corporation may contravene a law or policy or behave in a non-ethical fashion; unfavorable outcomes from lawsuits brought against the merged Corporation; or events or series of events that may interrupt operations.

Readers are cautioned that the above list is not exhaustive. Other risks and uncertainties of which AlliancePharma is not currently apprised or that it does not currently deem important could cause actual outcomes or events to differ substantially from those set out in the forward-looking statements.

Nothing guarantees that the planned acquisitions and the financing from PCP will come to pass or that the anticipated strategic benefits and operational synergies will materialize. The planned acquisitions and the strategic financing from PCP are subject to various approvals from regulatory authorities, and specifically that of TSXV, as well as fulfillment of and compliance with various conditions, and nothing guarantees that such approvals will be secured and/or such conditions will be fulfilled. The planned merger could be modified, restructured, or cancelled.

Readers are cautioned not to accord undue credibility to such forward-looking statements, which are based solely on AlliancePharma’s expectations as of the date of this press release. AlliancePharma declines all responsibility to update or revise its forward-looking statements, whether to account for new information or future events or circumstances, unless legally obligated to do so.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, or in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended, nor under any State securities law, and may not be offered for sale or sold in the United States, unless registered in compliance with these laws or dispensed from such registration.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.