QLT Gives Update On Special Distribution To Shareholders

QLT Inc. (NASDAQ: QLTI) (TSX:QLT) ("QLT") is providing an update on its previously announced special distribution (the "Special Distribution") of common shares (the "Aralez Shares") of Aralez Pharmaceuticals Inc. ("Aralez"), or cash in lieu thereof, to QLT shareholders. In connection with the Special Distribution, on February 5, 2016, QLT acquired the Aralez Shares and QLT shareholders were given the opportunity to elect to receive cash in lieu of their pro rata entitlement to Aralez Shares, up to a maximum aggregate amount of US$15 million, subject to proration. The cash election was over-subscribed and, accordingly, the entitlement to cash by QLT shareholders who elected to receive cash in lieu of Aralez Shares will be prorated by approximately 50% and such QLT shareholders will receive Aralez Shares for the remainder of their entitlement. QLT has also completed the sale of certain Aralez Shares to third party purchasers in order to fund the US$15 million cash component. The Special Distribution will be implemented as part of a reorganization of QLT's share capital pursuant to a statutory plan of arrangement (the "Share Reorganization"), which was approved by the QLT shareholders at a special meeting held on March 18, 2016 in Vancouver, Canada with 99.8% of the QLT common shares voted at the special meeting voting in favour. The statutory plan of arrangement providing for the Share Reorganization received final approval of the Supreme Court of British Columbia today. QLT previously stated that the Special Distribution would complete on or about March 22, 2016. Due to certain SEC filing requirements of Aralez, the Special Distribution will not be completed on March 22, 2016. QLT will publicly announce the completion date of the Special Distribution promptly following the time it is established. Due Bill Trading Procedures In accordance with the rules of the Toronto Stock Exchange and NASDAQ, "due bill" trading procedures are being applied in connection with the Special Distribution. Pursuant to these procedures, automated systems are tracking any trading of QLT common shares ("QLT Shares") in the period between the second trading day prior to the record date for the Special Distribution, being February 11, 2016, and the date on which the Special Distribution completes (the "Due Bill Period"). The QLT Shares will commence trading on an "ex-distribution" basis on the trading date following completion of the Special Distribution, as of which date purchases of QLT Shares will no longer have an attaching right to the Special Distribution. The "due bills" will be redeemed once all trades with attached "due bills" entered during the Due Bill Period have settled. As set out above, QLT will advise the market as soon as these dates have been established.