Neptune Wellness Solutions Closes US$41 Million Private Placement

Published: July 19, 2019

Neptune Wellness Solutions Closes US$41 Million Private Placement

Neptune Wellness Solutions Inc., a North American leader in cannabinoids extraction, formulation and turnkey packaging solutions, has completed a private placement with both existing and new institutional investors, led by Perceptive Advisors, resulting in gross proceeds to the Company of US$41.4 million. John Moretz, Chairman of the Board, and Michael Cammarata, President and CEO of Neptune, invested US$5.0 million in the aggregate as part of this Offering. Upon closing of the Offering, the Company issued an aggregate of 9,415,910 common shares of the Company at a purchase price of US$4.40 per Share.

“The Board joins me in thanking investors who participated in this offering and in welcoming our new shareholders to Neptune. Given recent contracts and the announced extraction capacity expansion plans, we are highly confident in the strength of Neptune’s business outlook”, said John Moretz. “My incremental investment in Neptune reflects my conviction in our new CEO and management team and their ability to execute on Neptune’s strategy. We opted for this accelerated financing structure to stay on track with the previously announced SugarLeaf closing timeline.”

A portion of the net proceeds from the Offering is expected to be used by the Company to fund the initial consideration for the acquisition of the assets of SugarLeaf Labs LLC and Forest Remedies LLC (collectively “SugarLeaf”), while the balance of such net proceeds is expected to be used for working capital and general corporate purposes. Neptune expects the SugarLeaf transaction to close on or before July 31, 2019.

“This financing comes at a pivotal point in the Company’s cannabis growth trajectory, particularly given the need to expand our current annual capacity of 200,000 kg, which is fully contracted for both fiscal 2020 and fiscal 2021,” said Mr. Cammarata. “With this in mind, we look forward to closing the SugarLeaf transaction, which brings U.S.-based capacity, efficient production of high-quality extracts, and strong supplier relationships, all of which create a strong value proposition for our customers.”