Friday, 26 August 2011

The View On Neptune's Share Price

Neptune Technologies & Bioressources
Basic Shares: 48.2 million
Fully diluted: 53.9 million

No doubt many investors have been spooked by the falling share price that was well over $4 in mid-August and briefly hit $3 as of this writing. The Howard Group has certainly received numerous inquiries

The consensus opinion is that we're seeing selling pressure because of stock that is coming free trading as of August 29th. This is related to the cross border $12.5 million financing that was completed in May.

The deal saw money raised at $2.15 (CDN) / $2.25 (USD) with warrants at $2.65 (CDN) / $2.75 (USD).

It's not unusual for a stock to be negatively impacted when the stock AND the warrants are in the money and investors in the financing look to take profits and restock their bank accounts. It will be interesting to watch activity early in the new week.

While that's the most likely explanation, Neptune executives are emphatic that there is no business reason they are aware of to warrant the recent share activity.