Neptune looks to raise $25 million through share offering
Developer and manufacturer of marine-derived omega-3 polyunsaturated fatty acids Neptune has priced…Developer and manufacturer of marine-derived omega-3 polyunsaturated fatty acids Neptune has priced an underwritten public offering of 10,000,000 newly issued common shares at a public offering price of US$2.50 per share.
The gross proceeds to Neptune are expected to be approximately US$25 million.
Neptune said that it intends to allocate approximately US$10 million for sales, marketing and distribution of its krill oil products, approximately US$5 million to support one of its subsidiaries, NeuroBioPharm in the development and validation of its product candidates, approximately US$5 million to finance the start-up and ramp-up of its new production facility, approximately US$2 million to maintain, manage and develop its intellectual property portfolio and to protect it against infringement by third parties, and the balance for general corporate and other working capital purposes.
The closing of the offering is expected to occur on or about March 5, 2014.
Neptune continues to recover after an explosion and fire at its Quebec plant, killing three people. In January, the company said that it expected to open its rebuilt facility some time soon after 1 March.