Neptune Technologies negotiates C$8.5 million financing

By Devika Patel

Knoxville, Tenn., Sept. 8 - Neptune Technologies & Bioressources Inc. said it has arranged an C$8.5 million debt financing with Desjardins Group.

Proceeds will be used to improve productivity and increase production capacity in order to meet the currently rapidly growing demand for its products.

Of the financing, C$3 million is earmarked to purchase customized equipment to optimize the extraction process and to increase productivity and production capacity with a target of reaching 120,000 kg of Neptune Krill Oil production per year, doubling current capacity.

Another C$3.5 million of the financing will be allocated to refinance the company's long-term debt at a lower annual interest rate of 7.71%. This refinancing will allow the company to save more than 2.5% of its interest charge and improve next year's cash flow.

Finally, a line of credit, initially of C$1 million, which can be increased to C$2 million, has also been established.

Investissement Quebec plans to participate in this financing by guaranteeing up to 38% of the financing, excluding the line of credit.

Based in Laval, Quebec, Neptune Technologies develops nutritional products from marine biomasses.

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