Friday, 11 October 2013

Neptune Secures Quebec Government Loan For Plant Rebuild

Neptune Technologies and Bioressources 
Basic Shares: 60.0 million 
Fully Diluted: 67.5 million **************************************

Today it was announced that Investissement Quebec has made Neptune Technologies a loan offer for $12.5 million. Refer to the news release for the terms of the loan.  Investissement Quebec’s mission is to contribute to Québec’s economic development in accordance with Government of Québec economic policy by stimulating investment and fostering employment in every region.

The loan will be used to support the reconstruction of Neptune’s Sherbrooke Quebec krill oil production plant. The original plant was destroyed November 8, 2012. The cost of the rebuild is “estimated to be approximately $43 million, which includes $10 million of replacement structure and equipment. The project cost is expected to be funded by the IQ loan, insurance recoveries associated with the incident, including $11.7 million received to date, a $3.5 million interest free loan from the Federal Government, via Canada Economic Development, additional loans and working capital.”

According to management the new plant will be a state of the art facility and will have operational and production efficiencies that did not exist with the original plant.

The plant is on track to be completed before the end of the current fiscal year (February 28, 2014) and will have the ability to produce more than 150 metric tons of Neptune’s premium “NKO®” krill oil annually.

To view the news release, please click here.