CAV.P Chelsea Acquisition Corporation

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


Chelsea Acquisition Corporation (TSX VENTURE:CAV.P) ("Chelsea" or the
"Corporation") is pleased to announce that it has entered into a formal
amalgamation agreement (the "Amalgamation Agreement") with Pediapharm Inc.
("Pediapharm") dated effective October 11, 2013, pursuant to which Chelsea will
amalgamate (the "Business Combination") with Pediapharm under the Canada
Business Corporations Act to form an amalgamated company ("Amalco") on such
terms as were previously announced on July 15, 2013. The Business Combination,
when completed, will constitute the qualifying transaction of the Corporation
pursuant to Policy 2.4 of the TSX Venture Exchange Inc. (the "TSX Venture")
Corporate Finance Manual.


The Business Combination is subject to the approval of TSX Venture and all other
necessary regulatory approvals. The completion of the Business Combination is
also subject to additional conditions precedent, including shareholder approval
of each of Chelsea and Pediapharm and the completion by Pediapharm of a brokered
private placement (the "Minimum Pediapharm Subscription Receipt Private
Placement") of a minimum of 13,333,333 subscription receipts ("Subscription
Receipts") at a price of $0.30 per Subscription Receipt for minimum gross
proceeds of $4,000,000. 


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, completion of the Minimum
Pediapharm Subscription Receipt Private Placement, 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 completion of the Minimum
Pediapharm Subscription Receipt Private Placement, the receipt of TSX Venture
and shareholder approval of the Business Combination and the completion of the
Business Combination. The forward-looking statements are based on certain key
expectations and assumptions made by Chelsea and Pediapharm including the timing
of completion of the Minimum Pediapharm Subscription Receipt Private Placement,
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.

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 Minimum Pediapharm Subscription Receipt
Private Placement is not completed, required shareholder and TSX Venture
approvals are not obtained on terms satisfactory to the parties or at all, and
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.


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 does not constitute an offer for sale of securities in the
United States.


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


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

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