Shoppers Drug Mart to Acquire Paragon Pharmacies

KELOWNA, BRITISH COLUMBIA--(Marketwire - May 22, 2012) - Paragon Pharmacies Limited ("Paragon") (TSX VENTURE:PGN) today announced that it has entered into a definitive asset purchase agreement (the "Agreement") with Shoppers Drug Mart Corporation ("Shoppers"). Shoppers has agreed to purchase substantially all of the assets of Paragon (the "Paragon Assets") for a cash purchase price of approximately $75 million, subject to certain adjustments and escrow provisions contained in the Agreement (the "Transaction"). The Paragon Assets are comprised of those assets currently used in Paragon's pharmacy business, which consists of 19 retail pharmacies and three central fill pharmacies located in British Columbia, Alberta and Manitoba.