- These funds will be used to rapidly implement the first phase of the
production capacity and productivity expansion in order to meet
strongly increasing customer demand-
- No more concerns about raising additional capital now-
- The Company has decided not to proceed with the private placement of
the previously announced convertible debentures at present market
LAVAL, Québec, Sept. 8 /CNW Telbec/ - Neptune Technologies &
Bioressources Inc. (NASDAQ.NEPT - TSX.V.NTB) announced today that it has
entered into a new financing arrangement with Desjardins Group, which will
provide the Company with up to $8.5 million in financing. The Company expects
the funds to used to improve productivity and increase production capacity in
order to meet the currently rapidly growing demand for its products.
Of the financing, $3 million is earmarked to purchase customized
equipment to optimize the extraction process and to increase productivity and
production capacity with a target of reaching 120 000 kg of Neptune Krill Oil
(NKO(R)) production per year, doubling current capacity. Another $3.5 million
of the financing will be allocated to refinance the long term debt of the
Company at a lower annual interest rate of 7.71%. This refinancing of long
term debt will allow the Company to save more than 2.5% of its interest charge
and improve next year's cash flow. Finally, a line of credit initially of
$1 million, which can be increased to $2 million, has also been established.
Investissement Québec participated in this financing by guaranteeing up to 38%
of the financing, excluding the line of credit. "Obtaining better financing
conditions, particularly in the context of the current credit environment,
constitutes a validation of our financial strength and of our business plan,"
commented Xavier Harland, Director of Finance.
"This expansion of our capacity is crucial to meeting actual and
forecasted strongly increasing customer demand for our products with our plant
presently running at full capacity. Now we have the financial resources to
quickly implement the first phase of our capacity expansion program and the
financing provides the Company with adequate financial resources to eliminate
any pressure for raising additional capital such as the convertible debentures
under current market conditions," stated Andre Godin, VP, Finance and
Administration of Neptune.
"Since Neptune maintains its position for the minimum conversion price
which is over $2, the Company has decided in agreement with its U.S.
investment banker that given current market conditions, it would not be
advantageous to the Company or in the best interest of our existing
shareholders to proceed with the previously announced private placement of
convertible debentures at this time," he added. "If funds are required for any
future needs, Neptune has other options with better conditions to explore in
due course, and now, with the bank financing concluded for the plant
expansion, we have eliminated any previous concerns about capital needed,"
Mr. Godin continued.
The second phase of the capacity expansion program is expected to be
realized through a partnership with a worldwide leading industrial
manufacturing company conforming to nutraceutical and pharmaceutical Good
Manufacturing Practice (GMP) standards with the mandate to offer substantially
larger capacity within two years. This will allow the Company to respond to
the growing demands of its dietary supplement and functional food customers as
well as pharmaceutical customers and strategic partners.
About Neptune Technologies
Neptune researches and develops proprietary bioactive ingredients and
products for nutraceutical and pharmaceutical applications and is sponsoring
clinical research to demonstrate the therapeutic benefits in various medical
indications. The Company patents its intellectual property, protects its
industrial secrets and innovations and continuously expands its intellectual
property portfolio. Neptune has already obtained many regulatory approvals
allowing commercialization of its products in various geographic markets and
has filed for and is expecting additional approvals. Neptune continues to
strongly support its strategic development plan to form partnerships with
worldwide leaders in the nutraceutical industries. Neptune has signed
agreements with Nestlé and Yoplait, worldwide leading food manufacturers, and
paved its entrance into the global functional food market.
Neither NASDAQ nor TSX venture exchange accepts responsibility for the
adequacy or accuracy of this press release.
Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities
laws. Such forward-looking statements involve known and unknown risks,
uncertainties, and other unknown factors that could cause the actual results
of the Company to be materially different from historical results or from any
future results expressed or implied by such forward-looking statements. In
addition to statements which explicitly describe such risks and uncertainties,
readers are urged to consider statements labeled with the terms "believes,"
"belief," "expects," "intends," "anticipates," "will," or "plans" to be
uncertain and forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that are described
from time to time in the Company's reports filed with the Securities and
Exchange Commission and the Canadian securities commissions.
For further information:
For further information: Toni Rinow, Ph.D., MBA, Corporate Development &
Investor Relations, Neptune Technologies & Bioressources Inc., (450) 687-2262,
firstname.lastname@example.org; www.neptunebiotech.com; SOURCE: Neptune
Technologies & Bioressources Inc.