Update: Neptune Plans to Resume Production in Mid-2013

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WholeFoods Magazine Staff
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Sherbrooke, QC, Canada—Neptune Technologies & Bioressources Inc., which suffered the loss of its krill oil production plant and three employees in November due to an explosion and fire, says its new plant will be up and running within six to nine months. At this time, krill oil production is said to be “significant,” in sharp contrast to an investment Web site’s speculation of “meaningful” production beginning in 2014.

In reaction to what Neptune feels was a faulty estimation, the company’s shares fell 26% on Monday and 8% on Tuesday of this week (December 17–18). The company was forced to slash its workforce of 120 people after the disaster, leaving it with 50 employees.

The company stated it will tap several resources to generate krill oil revenues in the interim. “We want to diversify the source of production in regard to manufacturing in the future and we are in negotiation with several industrial partners to have production outside Canada,” Neptune chief financial officer André Godin told Reuters.

Meanwhile, New York-based Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) is seeking a class action lawsuit against Neptune and certain company officers on behalf of those who purchased the common stock of Neptune Technologies & Bioressources Inc. between December 12, 2011 and November 8, 2012. They allege violations of the Securities Exchange Act of 1934, but Neptune has stated the claims are without merit.

 

Published in WholeFoods Magazine, February 2013 (online 12/20/12)