Tuesday, 2 October 2012

Double Announcement for Neptune - Closing of $34.1 Million Underwritten Offering of Common Shares and Filing of Patent Infringement Lawsuit


Neptune Technologies & Bioressources

TSX: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million
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Neptune announced today the closing of its previously announced public offering of 7,318,000 common shares at US $4.10 per common share. Prior to the closing, the underwriters exercised its over-allotment option to purchase an additional 989,762 common shares, resulting in a total of 8,307,762 common shares being issued today for gross proceeds of approximately US $34.1 million.

The Company is planning on distributing the net proceedings amongst the following:

  • approximately US$9.0 million for sales, marketing and krill inventory purchases for NKO(R) and EKO(TM),
  • approximately US$8.0 million to support Acasti Pharma Inc. in the development and validation of CaPre(R) and other product candidates, and to support NeuroBioPharm Inc. in the development and validation of its product candidates,
  • approximately US$5.0 million to fund the expansion of its Sherbrooke plant that is intended to increase Neptune's annual production capacity to 500,000 kilograms of krill oil,
  • approximately US$3.0 million to fund product development, clinical trials and regulatory affairs of Neptune (including management and protection of its intellectual property portfolio),
  • the remaining balance for general corporate and other working capital purposes.


RBC Capital Markets and JMP Securities LLC acted as Joint Book-Running Managers for the offering and Byron Capital Markets acted as Manager.


In other Neptune news, just a day after announcing the securing of its Continuation Patent, Neptune took another aggressive stand against industry competitors today by filing a second patent infringement out of the United States District Court for the District of Delaware.

Neptune is requesting monetary damages but more importantly is seeking injunctive relief. This announcement is a significant strategy move for Neptune as securing injunctive relief would result in a court-order blocking Neptune’s competitors from manufacturing or selling krill oil products in the United States.

According to today’s news release, Neptune’s patent infringement lawsuit cites infringement of Neptune’s product composition against Aker Biomarine ASA, Aker Biomarine Antarctic AS, Aker Biomarine Antarctic USA, Inc., Schiff Nutritional International and Schiff Nutrition Group, Inc. Neptune has also filed a separate infringement action against Enzymotec Limited., Enzymotec USA, Inc., and Mercola.com Health Resources, LLC.

No opinion on the timing or the outcome of an announcement from the United States District Court has been expressed.