Neptune Announces Closing of Debt Financing

Rhea-AI Summary

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) has successfully secured $4 million in senior secured notes financing from CCUR Holdings, Inc. and Symbolic Logic, Inc. The notes will mature in 12 months and carry an interest rate of 16.5% per annum, with interest initially payable in kind. In addition, the company will issue warrants for 850,000 shares at $0.53 per share, exercisable for five years. A potential second closing of up to $1 million in notes may occur by February 28, 2023. This financing aims to bolster Neptune's position in the consumer-packaged goods market focused on sustainable and plant-based products.

Positive

• Secured $4 million in senior secured notes financing.
• Interest rate set at 16.5% per annum, manageable for financing.
• Possibility of an additional $1 million in notes financing.
• Issuance of warrants for 850,000 shares at $0.53, potentially enhancing investor interest.

Negative

• High interest rate of 16.5% may strain cash flow.
• Warrants issuance could dilute existing shareholder value.

LAVAL, QC, Jan. 13, 2023 /PRNewswire/ - Neptune Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT), a consumer-packaged goods company focused on plant-based, sustainable and purpose-driven lifestyle brands, today announced that it has closed on a senior secured notes financing (such notes, the "Notes") for gross proceeds of $4,000,000 USD with CCUR Holdings, Inc. and Symbolic Logic, Inc. (collectively, the "Noteholders"). Additionally, Notes in an aggregate principal amount equal to the lesser of * 1,000,000 USD and (y) 25.0% of the net cash proceeds of certain qualified post-initial closing issuances of equity may be issued at a second closing, which must occur, if at all, on or prior to February 28, 2023.

The Notes will mature 12 months from the initial closing and bear interest at a rate of 16.5% per annum. Interest will be payable in kind on the first 6 monthly payment dates after the initial closing date and thereafter will be payable in cash.

Pursuant to the terms of the Notes, the Company is also issuing to the Noteholders warrants to purchase an aggregate of 850,000 shares of Neptune common stock, with each warrant exercisable for 5 years following the initial issuance at a price of $0.53 per common share.

About Neptune Wellness Solutions Inc.

Neptune is a consumer packaged goods company that aims to innovate health and wellness products. Founded in 1998 and headquartered in Laval, Quebec, the company focuses on developing a portfolio of high-quality, affordable consumer products that align with the latest market trends for natural, sustainable, plant-based and purpose-driven lifestyle brands. The company's products are available in more than 27,000 retail locations and include well-known organic food and beverage brands such as Sprout Organics, Nosh, and Nurturme, as well as nutraceuticals brands like Biodroga and Forest Remedies. With its efficient and adaptable manufacturing and supply chain infrastructure, the company can quickly respond to consumer demand, and introduce new products through retail partners and e-commerce channels. Please visit neptunewellness.com for more details.

Disclaimer – Safe Harbor Forward–Looking Statements

Statements in this news release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of applicable 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. 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 with respect to : the timing and outcome of the transactions described in this news release (collectively, the "Transaction"); the anticipated benefits of the Transaction to the parties; and the impact of the Transaction on the Company. In respect of the forward-looking statements and information concerning the anticipated benefits and completion of the Transaction and the anticipated timing for completion of the Transaction, the Company has provided such statements and information in reliance on certain assumptions that it believes are reasonable at this time. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking statements and information included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The forward-looking statements contained in this news 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, 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. All forward-looking statements in this news release are made as of the date of this news 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.

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SOURCE Neptune Wellness Solutions Inc.

FAQ

What is the recent financing announcement by Neptune Wellness Solutions Inc. (NEPT)?

Neptune announced $4 million in senior secured notes financing, with a potential additional $1 million by February 28, 2023.

What is the interest rate on the secured notes from Neptune Wellness Solutions?

The secured notes carry an interest rate of 16.5% per annum.

How many warrants did Neptune issue in conjunction with the financing?

Neptune issued warrants to purchase 850,000 shares of common stock.

What is the exercise price for the warrants issued by Neptune?

The warrants have an exercise price of $0.53 per share.

When will the senior secured notes from Neptune mature?

The senior secured notes will mature 12 months from the initial closing date.