Partnership to expand distribution
relationships to also bring Neptune branded products to
market
LAVAL, QC, Sept. 22, 2020 /PRNewswire/ - Neptune Wellness
Solutions, Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX:
NEPT), a diversified and fully integrated health and wellness
company focused on natural, plant-based, sustainable and
purpose-driven lifestyle brands, today announced an import and
stocking distribution partnership with one of the world's leading
consumer goods companies, making and selling around 400 brands in
more than 190 countries, for professional beauty, personal care and
hygiene product lines generating potential sales revenue from as
much as USD $65 million up to USD
$137 million over the next 18 months
based on the consumer product company's and Neptune's
projections.
Neptune expects to receive first shipments of products into its
inventory by the end of October 2020.
It should be noted that the distribution agreement does not require
any minimum annual purchase commitments, acceptance of orders
placed by Neptune are at the discretion of the global consumer
product company. Accordingly, there is no certainty at this time
that the full deal size will be realized.
The deal is consistent with Neptune's B2B and B2C dual
go-to-market strategy to serve consumers at both wholesale and
retail levels, with the Company serving as the U.S. and Canadian
master distributor for its partners' products, including hand
cleaning wipes and hand sanitizing wash and gels across commercial,
industrial and institutional channels.
As a master distributor for the global CPG organization, Neptune
additionally expects to expand its reach into major North American
retailers to create new distribution opportunities for Neptune
branded consumer packaged goods products.
"This is the latest in a growing list of partners, including
national retailers in the club store channel, International Flavors
& Fragrances, and others," said Michael Cammarata, Chief
Executive Officer and President of Neptune. "We believe these
high-profile partners will help Neptune expand our distribution
relationships and help us with our goal of bringing our own branded
products to market."
Dr. Toni Rinow, Chief Financial
Officer and Global Operating Officer of Neptune, added: "We
intend to develop long-term relationships with high-quality
partners to steadily expand our revenue. At the same time, the
business remains focused on innovation to drive revenue, and it is
part of our core financial strategy to enhance margins and
capitalize on asset-light innovations."
ABOUT NEPTUNE WELLNESS SOLUTIONS, INC.:
Neptune
Wellness Solutions is a diversified and fully integrated health and
wellness company. With a mission to redefine health and wellness,
Neptune is focused on building a broad portfolio of high-quality
and affordable consumer products in response to long-term secular
trends and market demand for plant-based, sustainable, and
purpose-driven lifestyle brands. The Company utilizes a highly
flexible, cost-efficient manufacturing and supply chain
infrastructure that can be scaled up and down or into adjacent
product categories to identify innovation opportunities, quickly
adapt to consumer preferences and demand, and bring new products to
market through its mass retail partners and e-commerce channels.
Leveraging decades of expertise in extraction and product
formulation, Neptune is a leading provider of turnkey product
development and supply chain solutions to business customers across
several health and wellness verticals, including legal cannabis and
hemp, nutraceuticals, and white label consumer packaged goods. The
Company has a strong position in cannabis and hemp research,
development, and commercialization focused on the use of
cannabinoids in household products to make them safer, healthier,
and more effective. Neptune's corporate headquarters is located in
Laval, Quebec, with a
50,000-square-foot production facility located in Sherbrooke, Quebec, and a 24,000-square-foot
facility located in North
Carolina. For additional information, please visit:
https://neptunecorp.com/.
FORWARD LOOKING STATEMENTS:
Statements in this press
release that are not statements of historical or current fact
constitute "forward-looking statements" within the meaning of the
U.S. securities laws and Canadian securities laws. These statements
are based on certain factors and assumptions, including, the
validity of the forecast provided by the global consumper company,
anticipated demand for the products of the global consumer company,
the volume of purchase orders placed by Neptune, the types of
products that will be subject to purchase orders placed by
Neptune, prices at which the products will be purchased by
Neptune and sold to its customers, the availaibility of sufficient
cash or credit facilities for Neptune to fund its purchase orders,
expected financial performance, the effect of the
ongoing global COVID-19 public health emergency on the Company's
operations, business prospects, the ability of Neptune to sell the
products purchased by it from the global consumer company and the
price at which Neptune will sell such products and like matters.
While Neptune considers these factors and assumptions to be
reasonable, based on information currently available, they may
prove to be incorrect. Such forward-looking statements involve
known and unknown risks, uncertainties, and other unknown factors
that could cause the actual results of Neptune to be materially
different from historical results or from any future results
expressed or implied by such forward-looking statements. In
addition to statements which explicitly describe such risks and
uncertainties, readers are urged to consider statements labeled
with the terms "believes", "belief", "expects", "intends", "up to",
"projects", "forecasts", "anticipates", "will", "should" or "plans"
to be uncertain and forward-looking. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. . Important
factors that could cause actual results to differ materially from
expectations include but are not limited to: that current customers
will continue to make and increase orders for the Company's
products,and in accordance with communicated intentions (including
in purchase orders), that the Company's supply chain will be
adequate to replace material supply and manufacturing, Company
liquidity and capital resources, including the availability of
additional capital resources to fund its activities, level of
competition, changes in laws and regulations, legal and regulatory
proceedings, the ability to adapt products and services to the
changing market, the ability to attract and retain key executives
and the ability to execute strategic plas. Past performance
is not guarantee of future performance and readers should not rely
on historical results as an indication of future results. The
forward-looking statements contained in this press release are
expressly qualified in their entirety by this cautionary statement
and the "Cautionary Note Regarding Forward-Looking Information"
section contained in Neptune's latest Annual Information Form (the
"AIF"), which also forms part of Neptune's latest annual report on
Form 40-F, and which is available on SEDAR at www.sedar.com, on
EDGAR at www.sec.gov/edgar.shtml and on the investor section of
Neptune's website at www.neptunecorp.com. All forward-looking
statements in this press release are made as of the date of this
press release. Neptune does not undertake to update any such
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law. The
forward-looking statements contained herein are also subject
generally to other risks and uncertainties that are described from
time to time in Neptune public securities filings with the
Securities and Exchange Commission and the Canadian securities
commissions. Additional information about these assumptions and
risks and uncertainties is contained in the AIF under "Risk
Factors".
Revenue forecasts herein constitute future–oriented financial
information and financial outlooks (collectively, "FOFI"), and
generally, are, without limitation, based on the assumptions and
subject to the risks set out above under "Forward–Looking
Statements". Although management believes such assumption to be
reasonable, a number of such assumptions are beyond the Company's
control and there can be no assurance that the assumptions made in
preparing the FOFI will prove accurate. FOFI is provided for the
purpose of providing information about management's current
expectations and plans relating to the Company's future
performance, and may not be appropriate for other purposes. The
FOFI does not purport to present the Company's financial condition
in accordance with IFRS, and it is expected that there may be
differences between actual and forecasted results, and the
differences may be material. The inclusion of the FOFI in this news
release disclosure should not be regarded as an indication that the
Company considers the FOFI to be a reliable prediction of future
events, and the FOFI should not be relied upon as such.
Neither NASDAQ nor the Toronto Stock Exchange accepts
responsibility for the adequacy or accuracy of this release.
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SOURCE Neptune Wellness Solutions Inc.