Neptune Announces Pricing of Public Offering of Common Shares

<p>Neptune Technologies &amp; Bioressources, a  biotechnology company in the development, manufacturing and commercialization of marine-derived oemga-3 polyunsaturated fatty acids, announced that is priced an underwritten public offering o f10 million newly issued common shares at a public offering price of USD $2.50 per share.</p>

Neptune Technologies & Bioressources, a  biotechnology company in the development, manufacturing and commercialization of marine-derived oemga-3 polyunsaturated fatty acids, announced that is priced an underwritten public offering o f10 million newly issued common shares at a public offering price of USD $2.50 per share. The gross proceeds to Neptune, before underwriting commissions and other expense, are expected to be $25 million. The underwriters of the offering have the option to purchase an additional 1.5 million common shares at the public offering price during a 30 day period from the closing of the offering. Roth Capital Partners and Euro Pacific Canada Inc. are acting as joint book-running managers and National Securities Corporation, a wholly-owned subsidiary of National Holdings, Inc. (NHLD), is acting as lead manager for the offering.

Neptune will allocate the net proceeds from the offering as follows:

  • Approximately $10 million for sales, marketing and distribution of its krill oil products
  • Approximately $5 million to support one of its subsidiaries, NeuroBioPharm Inc., in the development and validation of it product candidates
  • Approximately $5 million to finance the start-up of its new production facility
  • Approximately $2 million to maintain, manages and develop its intellectual property portfolio and to protect it from third party infringement
  • The balance will remain for corporate and other working capital purposes         

The closing of the offering is expected to happen around March 5. A prospectus supplement and accompanying final short form base shelf prospectus related to the offering will be filed with the U.S. Securities and Exchange Commission (SEC) and the application Canadian securities regulatory authorities. Copies of those documents will be available at www.sec.gov/edgar.shtml and www.sedar.com.

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