PORT HUENEME, CA--(Marketwired - Jul 6, 2016) - Stellar Biotechnologies, Inc. ("Stellar" or "the Company") (NASDAQ:
SBOT), the leader in sustainable manufacture of Keyhole Limpet Hemocyanin ("KLH"), announced today that it has closed its
previously announced $6.75 million sale of 1,687,500 common shares in a registered direct offering and unregistered warrants to
purchase up to 1,265,626 unregistered common shares in a private placement. The combined purchase price for one registered common
share and one unregistered warrant to purchase 0.75 of an unregistered common share was $4.00. The warrants have an exercise
price of $4.50 per full share, are non-exercisable for 6 months and terminate 5 years from the time the warrants are first
exercisable.
Maxim Group LLC acted as the sole placement agent for the offering.
Stellar intends to use the net proceeds from the offering for capital expenditures, research and development activities,
operating costs and for general corporate purposes, including working capital.
"Stellar Biotechnologies is currently positioned to be a leading supplier of KLH protein for the exciting field of active
immunotherapy. This financing from institutional investors will support important growth initiatives to meet demand anticipated
from current and new customers as they advance through clinical development and prepare for commercial launch. This also
strengthens our balance sheet and provides additional runway that will help our efforts to achieve future milestones," said Frank
Oakes, President and CEO of Stellar Biotechnologies, Inc. "Our KLH products are already being used by our customers in multiple,
clinical-stage programs and it is important that we are prepared to meet the demand from the pipeline of immunotherapies that
will require a sustainable supply of the KLH protein."
The common shares were offered by Stellar pursuant to a shelf registration statement on Form S-3 (file no. 333-203595), which
was declared effective on May 8, 2015 by the Securities and Exchange Commission (SEC). A final prospectus supplement and the
accompanying prospectus relating to the offering of the common shares were filed with the SEC on June 30, 2016 and are available
on the SEC's website at http://www.sec.gov.
The warrants and the common shares issuable upon exercise of the warrants were offered in a separate private placement under
Section 4(a)(2) of the Securities Act of 1933 (the "Securities Act") and Regulation D Rule 506(c) and have not been registered
under the Securities Act. The Company has agreed to file one or more registration statements with the SEC covering the resale of
the common shares issuable upon exercise of the warrants.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall
there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any such jurisdiction.
About Stellar Biotechnologies
Stellar Biotechnologies, Inc. (NASDAQ: SBOT) is the leader in sustainable manufacture of Keyhole Limpet
Hemocyanin (KLH), an important immune-stimulating protein used in wide-ranging therapeutic and diagnostic markets. KLH is both an
active pharmaceutical ingredient (API) in many new immunotherapies (targeting cancer, immune disorders, Alzheimer's and
inflammatory diseases) as well as a finished product for measuring immune status. Stellar Biotechnologies is unique in its
proprietary methods, facilities, and KLH technology. We are committed to meeting the growing demand for commercial-scale supplies
of GMP grade KLH, ensuring environmentally sound KLH production, and developing KLH-based active immunotherapies.
Visit www.stellarbiotech.com
and the KLH knowledge base www.klhsite.org.
Forward Looking Statements
This press release may contain forward-looking statements 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. Forward-looking statements may be identified by
the use of words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "may," "will," "would," "could,"
"should," "might," "potential," or "continue" and variations or similar expressions. Readers should not place undue reliance on
these forward-looking statements, which are not a guarantee of future performance. There can be no assurance that forward-looking
statements will prove to be accurate, as all such forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or future events to differ materially from the forward-looking statements. Such risks
include, but may not be limited to: general economic and business conditions; technology changes; competition; changes in
strategy or development plans; availability of funds and resources; governmental regulations and the ability or failure to comply
with governmental regulations; the timing of the Company's or its partners' anticipated results, including in connection with
clinical trials; the ability to meet the goals of the Company's joint ventures and strategic partnerships; and other factors
referenced in the Company's filings with securities regulators. For a discussion of further risks and uncertainties related to
the Company's business, please refer to the Company's public company reports filed with the B.C. Securities Commission and the
U.S. Securities and Exchange Commission. All forward-looking statements are made as of the date hereof and are subject to change.
Except as required by law, the Company assumes no obligation to update such statements. This press release does not constitute an
offer or solicitation of an offer for sale of any securities in any jurisdiction, including the United States.