Ceapro Inc. Announces the Mailing of Meeting Materials in Connection With the Special Meeting of Securityholders to Approve Merger With Aeterna Zentaris - Seite 2

The Board believes this is a compelling opportunity for Ceapro and its investors for a number of reasons, including:

• Recurring revenue to support business expansion. The Resulting Issuer is expected to benefit from ongoing revenue from existing Ceapro products, which provide near term revenue owing to the streamlined development and commercialization opportunities in the cosmeceutical and nutraceutical space, along with license revenue from the partnering of Aeterna Zentaris’ pharmaceutical products, including macimorelin (Macrilen; Ghryvelin), which have the potential to create long-term value for investors. These revenue streams are planned to be used to support the development of high potential-return products, ideally creating growing and sustainable revenue, and represent a more diversified value proposition for investors. The pipeline of products being developed should generate an increased and consistent news flow, a key supporting factor in investor interest.
• Stronger Financial Position and Flexibility. The Resulting Issuer will have increased financial flexibility with enhanced free cash flow and a strengthened balance sheet, with approximately $57 million in unrestricted cash as at September 30, 2023 on a pro forma basis.
• Diversified commercial and development product pipeline. The Resulting Issuer is anticipated to have a stronghold in the active ingredients market and value-driving cosmeceutical products (i.e. oat beta glucan and avenanthramides, which are found in leading skincare product brands including Aveeno, Jergens, Neutrogena, Lubriderm and other leading brand names) and nutraceuticals. The Resulting Issuer is also expected to benefit from an extensive pipeline of innovative products in development, including Ceapro’s quicker to market biotechnology products and Aeterna Zentaris’ potentially higher return, but longer-horizon, products. With this pipeline rejuvenation, the Resulting Issuer is expected to boast:
  • more products in the pipeline that are closer to potential commercialization;
  • an enhanced ability to strategically focus financial and company resources in a manner that provides the most value to the company and shareholders; and
  • a more compelling value proposition and lower risk profile.
• Expanded pharmaceutical research and development capabilities. Both Ceapro and Aeterna Zentaris bring deep expertise and knowledge that are expected to play a key role in advancing the Resulting Issuer and its development pipeline. The Resulting Issuer will have the infrastructure to support development activities and potentially offer improved efficiencies, in addition to cost savings. The Resulting Issuer will also have an expanded development pipeline of products which it is committed to prioritizing as management evaluates what will provide the best overall potential for the Resulting Issuer, shareholders and consumers.
• Improved Trading Liquidity and Capital Markets Exposure. Subject to regulatory approvals, the Resulting Issuer will be listed on both the TSX and the Nasdaq, providing it with greater exposure to capital markets than is currently available to Ceapro.
• Experienced Leadership. Both companies have expertise that can build upon each other resulting in a stronger company. For example, Aeterna Zentaris is adept at navigating the conduct of human clinical trials and the critical regulatory approval process required to bring pharmaceutical products to market, which provides a synergistic addition to Ceapro as it continues to advance higher value pharmaceutical opportunities for its active ingredients and technologies.