Aeterna Zentaris Announces Share Consolidation to Regain NASDAQ Compliance

  Aeterna Zentaris Announces Share Consolidation to Regain NASDAQ Compliance

PR Newswire

QUÉBEC CITY, Oct. 3, 2012

Common shares will begin trading on a consolidated and split-adjusted basis on
October5, 2012

QUÉBEC CITY, Oct. 3, 2012 /PRNewswire/ - Aeterna Zentaris Inc. (NASDAQ: AEZS)
(TSX:AEZ) (the"Company") today announced that the issued and outstanding
common shares of the Company ("Common Shares") have been consolidated (the
"Consolidation") on a six (6) to one (1) basis effective as of October2,
2012. The purpose of the Consolidation is to enable the Company to attempt to
regain compliance with NASDAQ's minimum bid price requirement.

The Company has received conditional approval from the Toronto Stock Exchange
("TSX") to effect the Consolidation and has provided notification of the
Consolidation to The NASDAQ Stock Market ("NASDAQ"). Subject to final
confirmation by TSX and NASDAQ, it is expected that the post-Consolidation
Common Shares will begin trading on each of NASDAQ and TSX at the opening of
markets on or about October5, 2012 under its current NASDAQ and TSX trading
symbols, "AEZS" and "AEZ", respectively, under the new post-Consolidation
CUSIP number of 007975303.

The Consolidation will reduce the number of outstanding Common Shares from
approximately 112.4million to approximately 18.7million. Proportionate
adjustments will be made to the Company's outstanding warrants and stock
options. No fractional Common Shares have been issued pursuant to the
Consolidation and any fractional shares that would have otherwise been issued
have been rounded down to the nearest whole number. Any and all such
fractional shares will be aggregated and sold by the Company's transfer agent
and registrar on the market, with the net proceeds being proportionately
distributed to shareholders.

Letters of transmittal with respect to the Consolidation are being mailed to
the Company's registered shareholders. All registered shareholders will be
required to send their share certificates representing pre-Consolidation
Common Shares, along with a properly executed letter of transmittal, to the
Company's registrar and transfer agent, Computershare Investor Services Inc.,
in accordance with the instructions provided in the letter of transmittal. All
registered shareholders who submit to Computershare a completed letter of
transmittal, along with their respective certificates representing
pre-Consolidation Common Shares, will receive in exchange new certificates
representing their post-Consolidation Common Shares. Shareholders who hold
their Common Shares through a broker, investment dealer, bank, trust company
or other nominee or intermediary should contact that nominee or intermediary
for assistance in depositing their Common Shares in connection with the Share
Consolidation.

About Aeterna Zentaris

Aeterna Zentaris is an oncology and endocrinology drug development company
currently investigating treatments for various unmet medical needs. The
Company's pipeline encompasses compounds at all stages of development, from
drug discovery through to marketed products. For more information please visit
www.aezsinc.com.

Forward-Looking Statements

This press release contains forward-looking statements made pursuant to the
safe harbour provisions of the U.S. Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
that could cause the Company's actual results to differ materially from those
in the forward-looking statements. For example, because the market price of
the Company's Common Shares will also be based on the Company's financial and
operational results, its financial position, including its capital
availabilities and liquidity resources, the development of its product
pipeline, market conditions, the market perception of its business and other
factors, which are unrelated to the number of shares outstanding, there can be
no assurance that the market price of the Common Shares will in fact increase
following the Consolidation or will not decrease in the future, or that the
minimum closing bid price of the Common Shares will meet NASDAQ's minimum bid
price requirement. Further, there can be no assurance that the Consolidation
alone will guarantee the continued listing of the Common Shares on The NASDAQ
Global Market or that the Common Shares will not be delisted due to a failure
to meet other NASDAQ continued listing requirements. Other such risks and
uncertainties include, among others, the availability of funds and resources
to pursue R&D projects, the successful and timely completion of clinical
studies, the risk that safety and efficacy data from any of our Phase 3 trials
may not coincide with the data analyses from previously reported Phase 1
and/or Phase 2 clinical trials, the ability of the Company to take advantage
of business opportunities in the pharmaceutical industry, uncertainties
related to the regulatory process and general changes in economic conditions.
Investors should consult the Company's quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information on risks
and uncertainties relating to forward-looking statements. Investors are
cautioned not to rely on these forward-looking statements. The Company does
not undertake to update these forward-looking statements. We disclaim any
obligation to update any such factors or to publicly announce the result of
any revisions to any of the forward-looking statements contained herein to
reflect future results, events or developments, unless required to do so by a
governmental authority or by applicable law.

SOURCE AETERNA ZENTARIS INC.

Contact:

Investor Relations
Ginette Beaudet Vallières
Investor Relations Coordinator
(418) 652-8525 ext. 265
gvallieres@aezsinc.com

Media Relations
Paul Burroughs
Director of Communications
(418) 652-8525 ext. 406
pburroughs@aezsinc.com
 
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