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Labopharm announces closing of US$20 million public offering of units
Date:2/18/2010

LAVAL, QC and PRINCETON, NJ Feb. 18 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced the closing of its previously announced underwritten public offering of 11,764,706 units. The units were sold at a price of US$1.70 per unit for gross proceeds of US$20 million. Net proceeds were US$18,150,000 after deducting underwriting discounts and commissions, and estimated offering expenses.

The Company expects to use the net proceeds from the offering for working capital and other general corporate purposes, including, but not limited to, supporting the commercialization of OLEPTRO(TM) in the United States, as well as its other existing and new product candidates, and financing its clinical development and regulatory costs of existing and new product candidates.

Each unit in the offering is comprised of one of the Company's common shares and a warrant to purchase 0.5 of a common share. Each whole warrant entitles the holder to acquire one common share of the Company upon payment of US$2.30 per share, exercisable at any time during the period beginning six months after the date of issuance and ending three years following the date of issuance.

Deutsche Bank Securities acted as the sole book-running manager and Canaccord Adams, Dundee Capital Markets and Versant Partners acted as co-managers for this offering.

Copies of the final prospectus supplement and accompanying prospectus relating to this offering, when available, may be obtained by contacting Deutsche Bank Securities Inc., Attention: Prospectus Department, Harbor
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SOURCE Labopharm Inc.
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