LAVAL, QC, March 10, 2022 /PRNewswire/ – Neptune Wellness Options Inc. (“Neptune” or the “Firm”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and totally built-in well being and wellness firm centered on plant-based, sustainable and purpose-driven life-style manufacturers, right now launched the next letter from the corporate’s Chair of the Board, Julie Phillips, Chief Government Officer, Michael Cammarata and Interim Chief Monetary Officer, Randy Weaver.
Expensive Shareholders:
On the heels of right now’s financing announcement, we wish to clarify our determination to lift further fairness by way of the Registered Direct Providing with a single strategic consumer-focused institutional investor. We imagine this motion, together with continued modifications to our operational and monetary decision-making, enhances the long-term alternative for achievement for Neptune Wellness shareholders.
Monetary Positioning
With geopolitical dangers rising, we’re taking the steps essential to shore up money reserves within the fast time period and place our stability sheet correctly to fund our progress initiatives as we push in the direction of profitability. To this finish, we now have explored a number of choices to stability the necessity for offering near-term monetary stability whereas guaranteeing we proceed to construct long-term shareholder worth. Consequently, we now have entered right into a definitive settlement with a single strategic consumer-focused institutional investor for the acquisition and sale of shares of our widespread inventory and pre-funded warrants. Taking into consideration all issues, we imagine that is in one of the best curiosity of the corporate and can profit shareholders within the long-term.
We additionally proceed to discover further financing choices, together with debt. We anticipate to return to phrases with a lender, or lenders, that may end in money proceeds to the corporate within the quantity of $20–$25 million, additional supplementing our current money place. Whereas we can not guarantee that present negotiations will result in an settlement, we’re presently having optimistic discussions with a number of lenders.
Development Drivers
We stay enthusiastic concerning the progress prospects of our enterprise, with alternative throughout all three of our core verticals. We now have efficiently made the transition to a fully-integrated shopper packaged items firm with a various suite of better-for-you manufacturers, out there in a few of the nation’s largest retail chains. On the similar time, we’re driving shopper relevance by pursuing the best strategic partnerships for co-branded product strains and increasing our product choices in key wellness classes together with hashish.
Main Distribution Positive factors
Since buying a majority stake in Sprout Organics in February 2021, we now have expanded Sprout child meals and toddler snacks considerably – each on-line and in retailer at main retailers like Goal and Wal-Mart.
Earlier this week, we introduced the launch of our Forest Treatments Multi Omega 3-6-9 line of dietary supplements into greater than 340 Sprouts Farmers Market shops throughout the U.S. This distribution settlement marks one other vital milestone in our efforts to rework Neptune right into a high-growth branded CPG firm.
In Canada, we proceed to safe distribution for our Temper Ring and PanHash hashish manufacturers. We are actually promoting into over 1,300 shops, up from over 1,000 shops within the prior quarter. This represents simply over 55 p.c of the shops within the 4 territories the place we function.
Strategic Partnerships
Final month, we introduced Walmart a first-of-its-kind collaboration between Sprout Organics and in style youngsters’ leisure platform CoComelon. This co-branded product line is now out there on Walmart.com and in 900 Walmart shops subsequent month, and has been very well-received. With this launch, Sprout Organics now sells into the highest natural child meals retailers within the U.S., accounting for about 90 p.c of the general market.
Class Enlargement
We proceed to introduce new and in-demand product codecs to satisfy the rising wants of hashish customers. With the launch of our Temper Ring pre-roll product line in Alberta and Ontario, Neptune now has an providing for each main hashish product class in Canada’s booming market.
Investing in Our Prospects
Six months in the past we carried out a strategic evaluation and made some massive modifications to get on observe to turning into a worthwhile diversified CPG firm. These actions have taken impact, and we’re beginning to see the outcomes – we simply posted our first quarter of optimistic gross margins since transitioning to a CPG-focused mannequin. We additionally delivered our fourth consecutive quarter of sequential income progress. We anticipate these optimistic tendencies to proceed in fiscal 12 months 2023.
We’re very enthusiastic about what the long run holds for Neptune Wellness – and we’re placing our cash the place our mouth is. Neptune’s government administration workforce, together with the Board, lately accomplished the acquisition of multiple million widespread shares within the public market, reinforcing our confidence within the path we’re headed.
Whereas the worldwide market might be unstable throughout turbulent instances, we’re taking steps to make sure we stay well-positioned to execute in opposition to our acknowledged plan: controlling our prices whereas pursuing high-growth alternatives with our Meals & Beverage, Hashish, and Private Care & Magnificence manufacturers.
Julie Phillips |
Michael Cammarata |
Randy Weaver |
Chair of the Board |
CEO |
Interim CFO |
About Neptune Wellness Options Inc.
Headquartered in Laval, Quebec, Neptune is a diversified well being and wellness firm with a mission to redefine well being and wellness. Neptune is concentrated on constructing a portfolio of top quality, reasonably priced shopper merchandise in response to long-term secular tendencies and market demand for pure, plant-based, sustainable and purpose-driven life-style manufacturers. The Firm makes use of a extremely versatile, cost-efficient manufacturing and provide chain infrastructure that may be scaled to shortly adapt to shopper demand and convey new merchandise to market by way of its mass retail companions and e-commerce channels. For extra data, please go to: https://neptunewellness.com/.
Disclaimer – Secure Harbor Ahead–Wanting Statements
Ahead-looking statements contained on this press launch contain recognized and unknown dangers, uncertainties and different elements which will trigger precise outcomes, efficiency and achievements of Neptune Wellness Options to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by the mentioned forward-looking statements.
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SOURCE Neptune Wellness Options Inc.