CAV.P Chelsea Acquisition Corporation

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN
UNITED STATES


Chelsea Acquisitions Corporation (TSX VENTURE:CAV.P) ("Chelsea") is pleased to
announce that Pediapharm Inc. ("Pediapharm") has closed its previously announced
brokered private placement (the "Pediapharm Offering") of subscription receipts
("Subscription Receipts") and as such has met one of the principal conditions to
the completion of the business combination of Chelsea and Pediapharm (the
"Business Combination). Pursuant to the Pediapharm Offering, Pediapharm issued
21,254,968 Subscription Receipts at a price of $0.30 per Subscription Receipt
for gross proceeds of $6,376,490.40 (the "Subscription Proceeds").


Richardson GMP Limited and Laurentian Bank Securities Inc. (collectively, the
"Agents") acted as agents of Pediapharm pursuant to the Pediapharm Offering. The
Agents are entitled to a cash commission equal to 8% of the gross proceeds
raised directly by the Agents and 3% of the gross proceeds raised by Pediapharm,
for aggregate commissions of $410,119.23 (the "Agent's Commissions"). The
Agent's Commissions are payable to the Agents' at the time of closing of the
Business Combination. In addition, the Agents were paid a corporate finance fee
by Pediapharm of $30,000 and granted agent's options ("Agent's Options") to
purchase 1,700,396 common shares ("Amalco Share") of the new corporation
("Amalco") formed pursuant to the amalgamation (the "Amalgamation") of Chelsea
and Pediapharm at a price of $0.30 per Amalco Share for a period of 24 months
from the date the Amalco Shares are listed on the TSX Venture.


Each Subscription Receipt entitles the holder to receive one Amalco Share
without additional consideration or further action, for each Subscription
Receipt held, upon the satisfaction of certain conditions, including the
completion of the Business Combination (collectively, the "Escrow Release
Conditions").


The Subscription Proceeds will be held by Computershare Trust Company of Canada,
as subscription receipt agent (the "Subscription Receipt Agent"), and invested
in short-term obligations of, or guaranteed by, the Government of Canada or
invested on deposit in a trust account of the Subscription Receipt Agent pending
satisfaction of the Escrow Release Conditions.


In the event that: (i) the Amalgamation is not completed within 90 days from the
closing date of the Pediapharm Offering; or (ii) the amalgamation agreement
entered into between Chelsea and Pediapharm in connection with the Amalgamation
is terminated in accordance with its terms; or (iii) Pediapharm has advised the
Agents or disclosed to the public that it and/or Chelsea do not intend to
proceed with the Amalgamation, then the Subscription Receipt Agent will return
to each holder of Subscription Receipts an amount equal to $0.30 in respect of
each Subscription Receipt held, together with such holder's pro rata entitlement
to the earned interest, and the Subscription Receipts will be cancelled and be
void and of no value or effect.


Assuming completion of the Amalgamation, it is intended that the net proceeds
from the Pediapharm Offering will be used by Amalco to: launch new products;
acquire commercial product rights; pay expenses incurred in connection with the
Business Combination and Pediapharm Offering; and for general working capital
requirements.


Pediapharm, through Amalco, is also negotiating an additional private placement
(the "QSSP Offering") of Amalco Shares with Quebec Stock Savings Plan Funds of
up to $1,623,509. In the event that the Business Combination and QSSP Offering
are completed, the total gross proceeds of the Pediapharm Offering will be
$8,000,000.


The Business Combination is subject to the approval of TSX Venture, shareholder
approval, and all other necessary regulatory approvals.


Pediapharm Business Development Up-Date

Chelsea wishes to provide a business development update to Pediapharm's
prospective investors in light of on-going business activities that have
recently occurred with respect to Pediapharm.


On November 21, 2013, Pediapharm received a first office action from Health
Canada regarding one of its product filings. In the correspondence, Health
Canada highlighted certain deficiencies in the filed submission.


After discussions with its regulatory consultants, Pediapharm is confident that
it has the necessary data available to respond to Health Canada and meet its
requests, although Pediapharm expects this will delay the launch of the product.
This delay is expected to reduce Pediapharm's expenses in 2014, as well as
reduce the amount of forecasted revenues that would have been associated with
the sale of the product. Pediapharm estimates the impact of the delay to be
minimal on its long-term financial projections.


Pediapharm is also pleased to announce that there have been significant
advancements in the negotiation of several transactions in the past weeks. In
the event these negotiations are successful, Pediapharm hopes to be in a
position to announce completed transactions in the first quarter of 2014.


About Pediapharm

Pediapharm is the only private Canadian specialty pharmaceutical company,
dedicated to serving the needs of the pediatric community. Its mission is to
bring to the Canadian market the latest innovative pediatric products with the
objective to improve the health and the well-being of children in Canada. Since
its debut in 2008, Pediapharm has entered into numerous commercial agreements
with partners from Canada and other countries around the world.


As indicated above, completion of the Business Combination is subject to a
number of conditions, including but not limited to, TSX Venture acceptance and
shareholder approval. The Business Combination cannot close until the required
shareholder approval is obtained. There can be no assurance that the Business
Combination will be completed as proposed or at all.


Investors are cautioned that, except as disclosed in the information circular of
Chelsea prepared in connection with the Business Combination, any information
released or received with respect to the Business Combination may not be
accurate or complete and should not be relied upon. Trading in the securities of
Chelsea or Pediapharm should be considered highly speculative.


The TSX Venture has in no way passed upon the merits of the Business Combination
and has neither approved nor disapproved the contents of this press release.
Neither TSX Venture nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture) accepts responsibility for the
adequacy or accuracy of this press release.


This press release contains forward-looking statements. More particularly, this
press release contains statements concerning: the receipt of TSX Venture and
shareholder approval of the Business Combination, the completion of the Business
Combination, the completion of the QSSP Offering, the use of proceeds by Amalco
of the Pediapharm Offering, and potential delays in product launch. The
forward-looking statements are based on certain key expectations and assumptions
made by Chelsea and Pediapharm including the timing of receipt of required
shareholder and TSX Venture approvals and the satisfaction of other conditions
to the completion of the Business Combination as set forth in the Amalgamation
Agreement, and the timing of Health Canada's approval of the Pediapharm product
currently under review.


Although Chelsea and Pediapharm believe that the expectations and assumptions on
which the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because no assurance can
be provided that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, risks that the required shareholder and TSX Venture
approvals are not obtained on terms satisfactory to the parties or at all, risks
that other conditions to the completion of the Business Combination are not
satisfied on the timelines set forth in the Amalgamation Agreement or at all,
and risks that Pediapharm product approval from Health Canada is delayed or not
granted at all.


The forward-looking statements contained in this press release are made as of
the date hereof and neither Chelsea nor Pediapharm undertake any obligation to
update publicly or revise any forward-looking statements or information, whether
as a result of new information, future events or otherwise, unless so required
by applicable securities laws.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in any
state in the United States in which such offer, solicitation or sale would be
unlawful. The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or an applicable
exemption from registration requirements.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Chelsea Acquisitions Corporation
Douglas Stuve
Director
(403) 234-3337


Pediapharm Inc.
Sylvain Chretien
Chief Executive Officer
(514) 239-7966

Chelsea Acquisition Corporation (TSXV:CAV.P)
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