BUSINESS NEWS: Neptune Reports Third Quarter Sales Estimate and Business Update

Neptune Reports Third Quarter Sales Estimate and Business Update


Laval, Québec, CANADA – December 15, 2009 – Neptune Technologies & Bioressources Inc. (“Neptune”) (NASDAQ.NEPT - TSX.V.NTB) provides guidance for the expected financial results of the fiscal 2010 third quarter ended November 30, 2009.


Sales Estimate
Neptune expects total revenue for the three-month period ended November 30, 2009 to be in the range of $3,400,000 to $3,800,000 compared to $2,451,000 for the third quarter ended November 30, 2008, representing an increase of 39 to 55%.

Total revenue for the nine-month period ended November 30, 2009 is expected to be in the range of $7,650,000 to $8,050,000 compared to $7,951,000 for the nine-month period ended November 30, 2008, representing a decrease of 3.8% to an increase of 1.2%. Neptune has managed to catch up with last year’s sales level despite a second quarter revenue of $1,371,000 following the production plant shut down for the completion of the expansion to increase plant capacity.

Production and Sales
The production plant is running at a steady rate targeting over 90,000 kg annually. In order to respond to increased demand and deliver on its volume commitments, Neptune is currently working to further expand its production capacity from 90,000 kg to an estimated 110,000 to 120,000 kg annually. This additional production is expected to take place during the normal course of business without production interruption and represents a marginal investment financed by cash flow from current operations. The confirmed sales for the 2010 calendar year are consistent with Neptune’s expectations of fully utilizing expanded plant capacity during the course of the year and of preparing for all new launches planned during the coming year. Neptune’s additional industrial plant project is on schedule, allowing the new industrial plant realisation during the course of 2011.

Convertible Debenture and Capital Structure
Neptune announces that a total of $2,250,000 of nominal value of its debenture have been converted as of November 30, 2009. Holders of $84,000 of debenture capital have chosen to convert capital and accumulated interest into Neptune units resulting in the issuance of 70,323 shares and 38,670 warrants of Neptune. Neptune warrants are exercisable until October 9, 2011 at various prices ranging from $2.15 to $2.25 depending on the market price of Neptune shares at their date of conversion. Holders of $2,166,000 of debenture capital have also chosen to convert into Acasti Pharma Inc. (“Acasti”) units resulting in the transfer from Neptune to the former debenture holders of 9,455,876 Acasti shares and the issuance of 9,455,876 Acasti call options by Neptune. Acasti call options are exercisable at $0.50 and expire one year after their issuance. $500,000 of debenture capital remains outstanding.

Source: Neptune Biotech