LAVAL,
QC, July 13, 2022 /CNW Telbec/ - Neptune
Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT)
(TSX: NEPT), a diversified and fully integrated health and wellness
company focused on plant-based, sustainable and purpose-driven
lifestyle brands, announced today that Sprout Foods Inc.
("Sprout"), the Company's organic plant-based baby food and toddler
snack company, has entered into an amendment of each of its
existing Secured Promissory Notes to expand from US$22.5 million to a maximum of US$37.5 million.
In connection with this expansion, investment funds managed by
Morgan Stanley Expansion Capital ("Morgan Stanley" or "MSEC") have
agreed to immediately commit an additional US$3 million under the expanded Secured
Promissory Notes to Sprout.
The maturity date of the note facility of February 1, 2024 is consistent with the maturity
date of the existing Secured Promissory Notes with MSEC and
Neptune. The funds from the expanded facility are intended to be
used for the general working capital needs of Sprout and the
repayment of certain existing Sprout debt payable to Neptune. MSEC
will be issued 372,670 common shares of Neptune in connection with
this expansion.
"The expanded facility shows confidence in Neptune's strategic
shift towards becoming a pure play CPG company and specifically the
growth opportunity for Sprout," said Michael Cammarata, Chief Executive Officer and
President of Neptune. "We look forward to expanding our
relationship with Morgan Stanley."
Lincoln Isetta, a Managing
Director of Morgan Stanley Expansion Capital, commented, "The
expanded facility with Sprout demonstrates our support and optimism
for the next stage of growth at Neptune and Sprout, a leader in the
organic baby food market. We continue to see exciting potential in
this sector and believe Sprout is well-positioned to continue share
gains and expand its presence into new categories."
About Sprout Organics
Sprout Organics is an organic baby food brand that strives to
make mealtime easy and fun for parents and babies through delicious
snacks and meals made with fresh, organic ingredients. The company
aims to make life less complicated, give children a head start in
life, and explore new foods with excitement with three simple
promises: Keep it real, keep it simple and keep it fun. Sprout uses
only the best, real and organic ingredients in everything it makes
which means certified organic foods in every bite straight from
nature, no GMOs. To learn more, please visit
www.sproutorganics.com.
About Neptune Wellness Solutions
Inc.
Headquartered in Laval, Quebec,
Neptune is a diversified health and wellness company with a mission
to redefine health and wellness. Neptune is focused on building a
portfolio of high quality, affordable consumer products in response
to long-term secular trends and market demand for natural,
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 to quickly adapt
to consumer demand and bring new products to market through its
mass retail partners and e-commerce channels. For additional
information, please visit: https://neptunewellness.com/.
Disclaimer – Safe Harbor
Forward–Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical fact, are
forward-looking statements and are based on expectations,
estimates, and projections as at the date of this news release. Any
statement that involves discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often but not always using phrases
such as "expects", or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "budget",
"scheduled", "forecasts", "estimates", "believes" or "intends" or
variations of such words and phrases or stating that certain
actions, events or results "may" or "could", "would", "might" or
"will" be taken to occur or be achieved) are not statements of
historical fact and may be forward-looking statements. In this news
release, forward-looking statements include, among other things,
statements with respect to the potential growth and market
opportunities for Sprout, Neptune Wellness Solutions' potential
expanded relationship with Morgan Stanley, the potential expansion
of the facility beyond the US$3
million committed by Morgan Stanley and the intended use of
funds from the expanded facility.
These forward-looking statements are based on assumptions and
estimates of management of the Company at the time such statements
were made. Actual future results may differ materially as
forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual
results, performance, or achievements of the Company to materially
differ from any future results, performance, or achievements
expressed or implied by such forward-looking statements. Such
factors, among other things, include: the ability of the Company to
successfully implement its strategic initiatives; the market
acceptance of, and competition with others, with respect to
Sprout's products; changes to food standards or other related
requirements by applicable regulatory agencies; implications of the
COVID-19 pandemic on the Company's operations; fluctuations in
general macroeconomic conditions; fluctuations in securities
markets; changing consumer habits; the ability of the Company to
successfully achieve its business objectives and cost cutting
plans; plans for expansion; competition; political and social
uncertainties; inability to obtain adequate insurance to cover
risks and hazards; the ability of the Company to obtain financing
on acceptable terms, the adequacy of the Company's capital
resources and liquidity, including but not limited to, availability
of sufficient cash flow to execute its business plan (either within
the expected timeframe or at all); the ability of the Company to
obtain financing on acceptable terms, expectations regarding the
resolution of litigation and other legal and regulatory
proceedings, reviews and investigations; employee relations; and
the presence of laws and regulations that may impose restrictions
in the markets where the Company operates. Although the
forward-looking statements contained in this news release are based
upon what management of the Company believes, or believed at the
time, to be reasonable assumptions, the Company cannot assure
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Readers should not place undue reliance on the forward-looking
statements and information contained in this news release. The
Company assumes no obligation to update the forward-looking
statements of beliefs, opinions, projections, or other factors,
should they change, except as required by law.
Additional information regarding these and other risks and
uncertainties relating to the Company's business are contained
under the heading "Risk Factors" in the Company's Annual Report on
Form 10-K dated July 8, 2022, for the
year ended March 31, 2022, filed
under the Company's profile on SEDAR at www.sedar.com and with
the United States Securities and Exchange Commission on EDGAR at
www.sec.gov.
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.