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Labopharm settles $1 million draw down under standby equity distribution agreement
Date:1/8/2010

LAVAL, QC, Jan. 8 /PRNewswire-FirstCall/ - Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced it has settled the previously announced draw down of $1 million under its standby equity distribution (SEDA) with YA Global Master SPV Ltd. (YA). Under the draw down, Labopharm issued 482,165 of its common shares to YA at a price of $2.07 per common share, net of the applicable discount. (All currency figures are in Canadian dollars.)

In accordance with the terms of the SEDA, the common shares were issued at a discount of 5% to the volume weighted average price (VWAP) on the Toronto Stock Exchange over the ten consecutive trading days following Labopharm's notice of its intention to draw down on the SEDA on December 20, 2009.

Following the completion of the issuance of shares to YA, Labopharm has 57,938,529 shares outstanding.

In connection with the draw down, Labopharm has filed a prospectus supplement to its short-form base shelf prospectus and registration statement to qualify the shares issued to YA. Copies of the final short-form base shelf prospectus, registration statement and prospectus supplement have been filed with SEDAR (www.sedar.com) and EDGAR (www.sec.gov) or may be obtained upon request to the Labopharm contact information below.

Securities Laws Matters

Securities legislation in certain of the provinces of Canada provides purchasers with the right to withdraw f
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SOURCE Labopharm Inc.
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