Neptune Wellness Announces Intention to Spinout Sprout Organics Pursuant to the Morgan Stanley Agreed To Transaction
- Neptune's spinout of Sprout Organics expected to reduce costs and debt exposure, improving financial position
- None.
The Company believes there are many benefits in proceeding with the contemplated spinout transaction, including reducing Neptune's operating costs and cash requirements and generally reducing Neptune's debt exposure, such that Neptune's overall financial position and cash flows would be improved.
Neptune will provide updates when further details of the proposed spinout transaction are determined. Neptune continues to evaluate additional available strategic options for the Company to unlock and maximize shareholder value, including strategic business and financial alternatives, which may include, but is not limited to, the monetization of assets, strategic partnerships, etc.
The completion of the proposed spinout transaction and contemplated distribution of Sprout shares to Neptune shareholders are subject to a number of conditions, including the completion of legal and tax structuring analyses, completion of financial analysis, determination of the structure of Sprout, determination of final details of the transaction, settlement of the board and management team for Sprout, required regulatory approvals, any required shareholder approval, Neptune's compliance with its debt agreements, and the listing of the Sprout shares on a stock exchange. There is no certainty that the foregoing conditions will be satisfied or that the spinout transaction will be completed on the terms proposed or at all. The Board of Neptune may determine to not proceed with the transaction should there be a change in market conditions or investor interest or should another opportunity arise that would be deemed to better enhance value to Neptune stakeholders.
The Sprout shares to be distributed in the spinout have not been registered under the United States Securities Act of 1933, as amended (the "
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
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.
Forward-looking statements in this press release relate to, among other things: completion of the contemplated spinout and the exchange of Sprout debt for Sprout equity, distribution of Sprout shares to Neptune shareholders and the basis of such distribution, the receipt of required shareholder, court, stock exchange and regulatory approvals for the contemplated spinout, any listing of the Sprout shares on a stock exchange, increases to shareholder value as a result of the contemplated spinout, the financial implications of the spinout and exchange, the timing of the contemplated spinout and exchange, and the timing of additional details concerning the contemplated spinout and exchange. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections of management on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. The Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable law.
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SOURCE Neptune Wellness Solutions Inc.