Ceapro Inc.
TSX VENTURE : CZO

Ceapro Inc.

June 09, 2016 07:05 ET

Ceapro Inc. Announces Brokered Private Placement

EDMONTON, ALBERTA--(Marketwired - June 9, 2016) - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the "Company"), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, announced today that it has appointed Echelon Wealth Partners Inc. ("Echelon" or the "Agent") as sole agent to undertake a brokered private placement financing, on a commercially reasonable basis, of 4,716,981 units (each, a "Unit") at a price of $1.06 per Unit for gross proceeds to the Company of $5,000,000 (the "Offering").

Each Unit will consist of one common share of the Company (each, a "Common Share") and one half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one Common Share for an exercise price of $1.80 for a period of 24 months following the closing of the Offering.

Ceapro has granted the Agent an option (the "Agent's Option") to increase the size of the Offering by up to an additional 15% of the total number of Units issued under the Offering, at any time, on or before 48 hours prior to closing. If the Agent's Option is exercised, the total gross proceeds raised under the Offering will be $5,750,000.

The Offering is scheduled to close on or about the week of July 4, 2016 and is subject to certain conditions including, but not limited to, the execution of an agency agreement with Echelon in connection with the Offering and receipt of all required regulatory approvals, including approval of the TSX Venture Exchange. Net proceeds of the Offering are to be used for research and development and general working capital purposes. All securities issued pursuant to the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering.

None of the securities issued in connection with the Offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

About Ceapro Inc.

Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and "active ingredients" from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company's website at www.ceapro.com.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Source: Ceapro Inc.

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