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Lattice Biologics Announces Conversion of US$1.4 Million in Debt to Equity

V.LBL.H

Encouraging Response From Healthcare Sector Bolsters Company Mission

SCOTTSDALE, AZ--(Marketwired - March 02, 2016) - Lattice Biologics Ltd. (TSX VENTURE: LBL) ("Lattice Biologics" or the "Company") is pleased to announce that approximately US$1.4 million of debt currently held by insiders of the Company will be converted to equity of Lattice Biologics, pursuant to terms of the previous debt converted to equity by Board Member Cathy Thomas, as announced on January 5th, upon the Company's listing on the TSX Venture Exchange. The US$1.4 million (CAD$1.85 million) in debt held by Guy Cook (the Company's CEO) and Cheryl Farmer (the Company's CFO) will be converted to equity at CAD $0.21 per share resulting in the issuance of 8.8 million shares of Lattice Biologics.

"The conversion of the debt to equity greatly strengthens our balance sheet as we move forward with the Company's growth plans," commented Guy Cook, CEO of Lattice Biologics. "I am extremely encouraged by the positive reception our recently launched AdMtrix Dermis and DMB Putty products are receiving within the market.

"Additionally, we are experiencing overwhelming support from our Key Opinion Leaders and surgeon consultants who are sharing in the research and commercialization efforts for our revolutionary stem cell-derived extracellular matrix (ECM) and matrix-assisted regeneration (MAR) technologies."

The announcement brings the total amount of Lattice Biologics debt converted to equity during the Company's 2016 fiscal year up to US$1.9 million (CAD$2.6 million). By strengthening the Company's ability to advance R&D efforts, this financial course directly supports the goal of becoming a biologics leader in next generation personalized health solutions.

Lattice Biologics Ltd.

Guy Cook,

Chief Executive Officer

Telephone No: 480-563-0800

About Lattice Biologics Ltd.:

Lattice Biologics recently completed its RTO, becoming a publicly traded company on January 4, 2016 and is traded on the TSX-V under the symbol: LBL. The Company is an emerging personalized/precision medicine leader in the field of cellular therapies and tissue engineering, with a focus on bone, skin, and cartilage regeneration.

Lattice Biologics develops and manufactures biologic products to domestic and international markets. Lattice's products are used in a variety of applications, including:

  • Enhancing fusion in spine surgery
  • Enhancing breast reconstruction post mastectomy for breast cancer patients
  • Sports medicine indications, including ACL repair
  • Promotion of bone regeneration in foot and ankle surgery
  • Promotion of skull healing following neurosurgery
  • Enhancing wound repair in burn victims
  • Subchondral bone defect repair in knee and other joint surgeries

Lattice Biologics maintains headquarters, laboratory and manufacturing facilities in Scottsdale, Arizona as well as offices in Toronto Ontario. The facility includes ISO Class 1000 and ISO Class 100 clean rooms, and specialized equipment capable of crafting traditional allografts and precision specialty allografts for various clinical applications.

The Lattice Biologics organization includes a product development and scientific research team of Ph.D.'s, highly trained tissue bank specialists, surgical technicians, certified sterile processing and distribution technicians, and CNC operators who maintain the highest standards of aseptic technique throughout each step of the manufacturing process. From donor acceptance to the final packaging and distribution of finished allografts, Lattice is committed to maintaining the highest standards of allograft quality, innovation, and customer satisfaction.

Lattice Biologics maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally. This includes Certificates to Foreign Governments from the U.S. Food and Drug Administration (FDA) and registrations for 29 countries, which allow the export of bone, tendon, meniscus, ligament, soft tissue, and cartilage products outside of the U.S.

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

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements herein, other than statements of historical fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "continuing", "intends" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lattice to be materially different from those expressed by such forward-looking statements or forward-looking information. Although Lattice believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

United States Advisory: The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the U.S. Securities Act) unless an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.

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Image Available: http://www.marketwire.com/library/MwGo/2016/3/2/11G085598/Images/Press_Release_030216_LinkedIn_300dpi-f0f4da53d361bca89a3a820ccad3c6b8.jpg

For more information contact:

Melanie Battista
Public Relations
Lattice Biologics Ltd.
16701 N 90th Street, Suite#101
Scottsdale, AZ 85260
480-563-0800 Office
News@LatticeBiologics.com
www.LatticeBiologics.com



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