BOCA RATON, Fla., Jan. 22, 2009 (GLOBE NEWSWIRE) -- Neptune Industries, Inc. (OTCBB:NPDI) announced today that its Board of Directors has approved a Plan of Recapitalization for the Company and directed that the Plan be submitted to the shareholders of the Company as soon as possible for consideration and approval. The general terms of the Plan provide for the sale of the current farming operation assets to a third party, pursuant to a purchase offer received by the Board, for total consideration offered in excess of $900,000, the disposition of other, non-working assets, and the capitalization of all other remaining debt of the Company into common stock.
Ernest Papadoyianis, CEO of Neptune Industries, Inc., stated, "After months of unsuccessfully seeking additional working capital for the Company and its operating subsidiaries, continued operating losses and negative cash flows from the aquaculture facility, lack of funds to continue the fish farm and feed the current stock of fish at the farm, and the imminent maturity of the toxic convertible debentures issued in 2006 and 2007, it is necessary to cut on-going costs to a minimum and to provide a mechanism to eliminate all debt from the balance sheet. If approved and successfully implemented, the Plan will put Neptune in the position of having no continuing operating expenses, minimal cash needs, and a more realistic opportunity to seek new funding to develop its Ento-Protein technology and to acquire or merge with other operating companies. In turn, that should mean a better future for Neptune and its shareholders."
No further details were provided regarding the Plan of Recapitalization, pending the filing and mailing of a proxy statement to shareholders.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes", "expects", "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. This news release speaks as of the date first set forth above, and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof.