- The TGOD contract represents the largest cannabis extraction
deal publicly announced to date in Canada
- Neptune to create one-stop-shop for extraction, formulation and
packaging
LAVAL, QC, June 12, 2019 /PRNewswire/ - Neptune Wellness
Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX:
NEPT), has entered into a definitive long-term agreement to provide
extraction, formulation and packaging services to The Green Organic
Dutchman Holdings Ltd. ("TGOD") (TSX: TGOD) (US: TGODF). 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.
Turnkey Solutions for New Product Forms
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 Licaps® 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.
"With this agreement, Neptune becomes a key partner for TGOD; we
have been impressed with their commitment to innovation and
excellence in every aspect of their business. Their unique
capabilities in terms of extraction, formulation and packaging were
decisive factors in our selection process," commented Brian Athaide, CEO of TGOD. "Today's
announcement is significant not only because it enables us to start
manufacturing certified organic consumer wellness products at
scale, but also because of the large and sustained economic impact
it will have in Quebec where TGOD
is building the world's largest organic cannabis production
facility."
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.
About Neptune Wellness Solutions Inc.
Neptune
Wellness Solutions specializes in the extraction, purification and
formulation of health and wellness products. Neptune's wholly owned
subsidiary, 9354-7537 Québec Inc., is licensed by Health Canada to
process cannabis at its 50,000-square-foot facility located in
Sherbooke, Quebec. Neptune brings
decades of experience in the natural products sector to the legal
cannabis industry. Leveraging its scientific and technological
expertise, Neptune focuses on the development of value-added and
differentiated products for the Canadian and global cannabis
markets. Neptune's activities also include the development and
commercialization of turnkey nutrition solutions and patented
ingredients such as MaxSimil®, and of a variety of marine and seed
oils. Its head office is located in Laval, Quebec.
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. 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", "projects", "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.
Forward-looking information in this press release includes, but is
not limited to, information or statements about Neptune's ability
to successfully, produce, or generate any revenue from the sale of
any marijuana-based and hemp-based products under the terms of the
agreement; the timing of Neptune's or its partners' anticipated
results, including in connection with the likelihood and timing of
obtaining all necessary regulatory approvals in connection with
Neptune's expansion at its licensed facility located in
Sherbrooke; and the ability or
failure of Neptune or its partners to comply with governmental
regulations.
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.html 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".
Neither NASDAQ nor the Toronto Stock Exchange accepts
responsibility for the adequacy or accuracy of this release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/neptune-signs-multi-year-extraction-agreement-for-230-000-kg-including-turnkey-solutions-with-the-green-organic-dutchman-300866040.html
SOURCE Neptune Wellness Solutions Inc.