Tuesday, 19 April 2011

Neptune Raises $10 million - Acasti On A Roll

Neptune Technologies & Bioressources
(NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 42.0 million
Fully diluted: 45.48 million

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It's a tale of two stocks with Neptune announcing it has commitments for close to $10 million while 60%-owned subsidiary, Acasti Pharma stock was moving higher, a trend established over the past couple of weeks.


Approximately $5.9 million is coming from U.S. funds & select investors, which is a positive first time event for Neptune. The remaining portion is from Canadian funds. It's interesting to note that unit pricing in the U.S. was $2.25 (18 month - 1/4 warrant @ $2.75) and the Canadian unit was $2.15 (18 month - 1/4 warrant @ $2.65). Truly, a sign of the times and the changing fortunes of the currency market!

This financing was the direct result of Neptune's recent appearance at the Roth Capital conference in California. NTB grabbed a lot of attention and Roth Capital jumped on the opportunity.

The specific use of proceeds has not been disclosed but we are looking forward to management's future comments on that subject. Followers of the company understand that there are a lot of developments in the works and these funds (when closed) will provide fuel to the initiatives.

Acasti shares held firm in early morning trading to just over $1 - a hefty hike from the $0.50 range on April Fool's Day.

Note that with Acasti's market cap of around $65 million, 60% of that value should flow through to NTB, which should help support Neptune's market cap in turn.

For further details, please read the news release.