Neptune Announces Binding Agreement for Divestiture of Cannabis Assets
The divestiture marks a key step in the company’s strategy to become a leading consumer packaged goods company, led by the Sprout brand
LAVAL, QC, October 17, 2022 /PRNewswire/ – Neptune Wellness Solutions Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT), a diversified and fully integrated health and wellness company, today announced that it has entered into a binding agreement to divest its cannabis business which includes the cannabis plant in SherbrookeQuebec, the Mood Ring and PanHash brands, and related assets (the “Transaction”).
The Company has entered into an agreement with PurCann Pharma Inc. (“PurCann Pharma”), a subsidiary of the SiliCycle Group, a Quebec based company with over 27 years of experience in the extraction and purification of active ingredients from natural biomass, to purchase Neptune’s cannabis actives for $5 CAD.15 million to be paid in cash.
Neptune intends to use the net proceeds from the sale of these assets for working capital and other general corporate purposes.
In connection with the Transaction, the Company has received an opinion from its financial advisor, Stifel GMP, that the consideration to be received by the Company in connection with the Transaction is fair, from a financial point of view. The transaction should be completed no later than November 15, 2022at the end of the standard closing requirements.
Ray SilverNeptune’s Chief Financial Officer, said, “The full divestiture of our cannabis business is a critical step in executing our strategy to become a leading CPG company. We are approaching an inflection point with our flagship brand Sprout Organics and expect it to serve as a primary growth engine for Neptune going forward. Additionally, the divestiture of the cannabis assets will allow us to achieve significant cost savings and operational streamlining through the redirection of resources to our leaner business structure. »
PurCann Pharma is already present in the Canadian cannabis market with its therapeutic brand OOVIE and its recreational cannabis brand OLLOPA. Hugo Saint-Laurent President of PurCann Pharma is delighted: “With this transaction, PurCann Pharma consolidates its position in the cannabis market and also aligns with our mission to provide pharmaceutical grade ingredients and cannabinoids to the life sciences market.
Neptune has retained Stifel GMP as its sole financial advisor and OslerHoskin & Harcourt LLP as legal counsel in connection with the transaction.
About Neptune Wellness Solutions Inc.
Based in Laval, Quebec, Neptune is a diversified health and wellness company whose mission is to redefine health and wellness. Neptune is focused on building a portfolio of affordable, high-quality consumer products in response to long-term secular trends and market demand for natural, plant-based, sustainable and health-driven lifestyle brands. an objective. The company uses a highly flexible and cost-effective manufacturing and supply chain infrastructure that can be scaled to quickly adapt to consumer demand and bring new products to market through its mass-market partners. and its e-commerce channels. For more information, please visit: https://neptunewellness.com/.
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of applicable securities laws. These forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause Neptune’s actual results to differ materially from historical results or any future results expressed or implied by these forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are encouraged to consider statements labeled with the terms “believes”, “believes”, “expects”, “intends”, “projects”. , “anticipate”, “will”, “should” or “plan” to be uncertain and forward-looking. Forward-looking statements relate to future events or future performance and reflect management’s expectations or beliefs regarding future events, including, but not limited to, statements regarding: the timing and outcome of the transaction; the anticipated benefits of the Transaction for the parties; the impact of the Transaction on the Company. With respect to forward-looking statements and information regarding the expected benefits and the completion of the Transaction and the expected timing of the completion of the Transaction, the Company has provided such statements and information based on certain assumptions which it believes to be reasonable. at the moment. . Although the Company believes that the assumptions and factors used in preparing any forward-looking information or forward-looking statements contained in this press release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur within the time disclosed or not at all. The forward-looking statements and information included in this press release are made as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise, except as required by applicable securities laws.
There can be no assurance that the transaction will occur, or that it will occur on the terms and conditions contemplated in this press release. The Transaction could be modified, restructured or terminated. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The transaction cannot be completed until the required regulatory approval has been obtained.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the “Cautionary Note Concerning Forward-Looking Information” section contained in Neptune’s most recent Annual Information Form, which also forms part of Neptune’s most recent Annual Report. Neptune on Form 40-F, which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml. All forward-looking statements contained in this press release are made as of the date of this press release. Neptune does not undertake to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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