Neptune Signs Multi-Year Extraction Agreement for 230,000 kg Including Turnkey Solutions with The Green Organic Dutchman

Published: June 13, 2019

Neptune Signs Multi-Year Extraction Agreement for 230,000 kg Including Turnkey Solutions with The Green Organic Dutchman

Neptune Wellness Solutions Inc. has entered into a definitive long-term agreement to provide extraction, formulation and packaging services to The Green Organic Dutchman Holdings Ltd. (“TGOD”). Neptune will extract and purify cannabinoids and terpenes from cannabis and hemp biomass received from TGOD. These extracts will be transformed into premium certified organic finished products. Under the terms of the contract, TGOD has committed to supply more than 230,000 kilograms of cannabis and hemp biomass to Neptune spanning a three-year period. Volumes are expected to be back-end loaded with the first year accounting for approximately 20% of the total volumes of the contract.

As part of this contract, most of the active ingredients extracted at Neptune’s Sherbrooke facility will be transformed into value added delivery forms onsite. Neptune will manufacture, package and provide formulation assistance, as required, in multiple product verticals to be sold under TGOD’s brands. Neptune will also formulate and package for TGOD capsules using its LicapsĀ® technology licensed from Lonza. Health Canada is expected to authorize the sale of new product forms, including vape pens and infused food and beverages in fall 2019.

“We are excited to work with TGOD, an innovation driven company focused on value added and differentiated products,” said Jim Hamilton, CEO of Neptune. “The ambitions of each company are well aligned and we look forward to collaborating with TGOD, supporting their growth with new product forms.”

“TGOD’s commitment to organic and sustainability is inspiring; Neptune is proud to become a part of their success story. We are delighted that TGOD has placed its trust in our people and our technology with the largest deal the industry to date,” commented Michel Timperio, President of the Neptune’s Cannabis Division.

TGOD will work closely with Neptune’s team to assist them in obtaining their organic certification. To facilitate the certification process, Neptune will allocate a dedicated space to house and operate TGOD’s proprietary and/or licenced technologies. In addition, Neptune is in the process of achieving the EU-GMP certification, allowing TGOD to export products to other jurisdictions as laws and regulations permit.

The first shipment of biomass from TGOD is expected to be received by Neptune in September 2019.