CEAPRO INC.
TSX VENTURE : CZO

CEAPRO INC.

June 27, 2007 17:06 ET

Ceapro raises $2.7 million in brokered private placement

EDMONTON, June 27 - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the "Corporation") today announced it has completed a $2,692,000 private placement for net proceeds of $2,488,000. A total of 8,684,190 common shares and 4,342,095 warrants were issued under the private placement. The common shares are subject to a hold period of four months from the date of issue. Each warrant entitles the holder to purchase one common share at a price of $0.45 until February 2009. The common shares issuable on exercise of the warrants are also subject to a four-month hold period commencing on the date of issue of the warrants.

Northern Securities Inc. acted as lead agent in connection with the offering and on the closing of the transaction, an aggregate of 464,513 brokers warrants were issued to Northern Securities Inc. and selling group members to purchase a total of 464,513 common shares at a price of $0.31 per share, as partial remuneration for their services in connection with the placement. The common shares issuable on exercise of the brokers' warrants are also subject to a four-month hold period commencing on the date of issue of the brokers warrants.

Ceapro will use the proceeds to increase sales and marketing activities, support new product research and development, fund additional capital equipment expenditures, and for general working capital needs.

"We regard this as a highly successful financing and a critical step as we move closer to achieving profitability in 2007," stated Dr. Mark Redmond, President and CEO. "We will carry this momentum into the next few months which promise to be highlighted by the CeaProve® diabetes screening test entering two Canadian sales channels. These CeaProve® activities build on the achievements announced recently, specifically the introduction of five new products in the Ceapro Organic line of active ingredients and the US launch of Ceapro Dermatology," he added.

About Ceapro Inc.

Ceapro Technology Inc., Ceapro Veterinary Products Inc., Ceapro Active Ingredients Inc. and Ceapro Bioenergy Inc. are wholly owned subsidiaries of Ceapro Inc., which is a Canadian growth-stage biotechnology company. Our primary business activities relate to the development and commercialization of organic products for medical, cosmetic and animal health industries using proprietary technology and natural, renewable resources. We will be applying our technology to become an active participant in the bioenergy sector. We have also introduced health and wellness services employing our CeaProve® diagnostic technology. Ceapro shares trade on the Canadian TSX Venture Exchange under the symbol CZO. To learn more about Ceapro, visit www.ceapro.com.

The TSX has neither approved nor disapproved of the information contained herein - This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Contact Information

  • Dr. Mark Redmond,
    President and CEO,
    Ceapro Inc.,
    Telephone (Edmonton): (780) 421-4555;

    Nicole Blanchard,
    B.Sc., B.Comm.,
    Managing Partner,
    Sun International Communications,
    Telephone (Montreal): (450) 627-6600