By Devika Patel
Knoxville, Tenn., Oct. 9 - Neptune Technologies & Bioressources Inc. said it took in C$2.75 million in a private placement of 8% convertible debentures.
The debentures mature in three years. Upon maturity, they may be redeemed in cash or converted, with a premium, into common shares.
The debentures may be converted into units, each comprised of one Neptune common share priced at C$1.25 for the principal portion of the debenture and at market price of Neptune common shares for the accrued interest and one half-share warrant, exercisable at market price.
The debentures may also be converted into Acasti Pharma units, each comprised of one Acasti Pharma common share and one call option on the common shares of Acasti Pharma owned by Neptune.
The conversion price of the debentures into common shares and call options increases over time, from C$0.25 to C$1.00 for the common shares and from C$0.50 to C$1.50 for the call options.
The debentures were sold in units, with each unit consisting of a C$1,000 debenture, 400 warrants exercisable at C$1.25 per share and 400 call options allowing the holder to acquire an equal number of Acasti Pharma class A shares, priced at C$0.25 per share.
The warrants and options expire on April 30, 2010.
Proceeds will be invested by Neptune into Acasti Pharma in order to reach several value-creating development and commercial milestones within Acasti Pharma's over-the-counter, prescription medical food and prescription drug programs.
Based in Laval, Quebec, Neptune Technologies develops nutritional products from marine biomasses.
| Issuer: | Neptune Technologies & Bioressources Inc.
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| Issue: | Units of C$1,000 in convertible debentures, 400 warrants and 400 call options
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| Amount: | C$2.75 million
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| Units: | 2,750
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| Price: | C$1,000
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| Warrants: | 400 warrants per unit
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| Warrant expiration: | April 30, 2010
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| Warrant strike price: | C$1.25
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| Options: | 400 options per unit (for Acasti Pharma shares)
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| Option expiration: | April 30, 2010
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| Option strike price: | C$0.25
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| Settlement date: | Oct. 9
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| Stock symbol: | TSX Venture: NTB
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| Stock price: | C$1.12 at close Oct. 8
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| Debentures
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| Maturity: | Three years
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| Coupon: | 8%
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| Price: | Par of C$1,000
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| Yield: | 8%
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| Conversion price: | From C$0.25 to C$1.00 if converted into common shares and from C$0.50 to C$1.50 if converted into call options
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