Acasti Rights Offering - Some Clarification

Neptune Technologies & Bioressources

NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 48.2 million

Fully diluted: 53.9 million

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Neptune and it's 60% owned subsidiary Acasti Pharma today re-issued a corrected news release regarding the just announced Rights Offering for Acasti. As we know the myriad of details could be confusing so we'll provide some clarification.

While the small cap markets have been taking a beating lately, Neptune Technologies (NTB) and Acasti Pharma (APO), have been doing relatively well.

And that's reflected in the price it will take to buy a discounted Acasti share through this week's announced rights offering.

When Acasti was first listed on the Toronto Stock Exchange Venture Index last March, the idea of a rights offering was unveiled and it was estimated that Acasti shares could be purchased for 60 cents per share through the rights offering.

Now that the rights offering has been launched, a discounted Acasti share will sell for $1.25 - over double the original estimate - because Acasti shares rose from the first trading price of 51 cents to trade in the range of $1.30 to $1.50 of late.

Here are the nuts and bolts of the rights offering:

• According to management, for roughly every 13 Neptune shares investors own, they will earn the right to purchase one $1.25 Acasti share.
• For every 10 Acasti shares investors own, they can purchase one discounted Acasti share at $1.25
• Every registered shareholder as of July 5th will be eligible, save those outside Canada.
• Rights expire at 4:00 p.m. Toronto time on Sept. 14th.
• Assuming all 64 million rights are exercised, Acasti would expect to raise just over $7.9 million.
• The net proceeds are intended to be used for the development of Acasti's prescription drug candidate CaPre, commercialization of its medical food, Onemia, development of a new over the counter (OTC) product and working capital.

There will be a trading opportunity as the Acasti rights will be listed on the TSX Venture Exchange under the symbol APO.RT on or around July 5th. It will give people wanting to pick up more Rights the opportunity to obtain them on the open market for about two months. It could be an interesting trade as the Rights will move up and down with the Acasti stock price with the market also pricing in the remaining time until the Rights expire.

If all the Rights are exercised, Neptune's ownership share of Acasti could drop to 54%.

Acasti applied to start Phase 11 clinical trials on its drug candidate, CaPre, but no announcement has yet been made.

However, Catalyst Equity Research analyst, Robin Cornwell, wrote in a recent update report:

"We have a strong degree of confidence that CaPre will very shortly receive approval from Health Canada to commence Phase 11 clinical trials."

To read the full rights offering news release, please click here.