Neptune Wellness Enters into Binding Term Sheet with Morgan Stanley Providing Option to Exchange Debt of Sprout Organics
- Neptune has the option to exchange its existing Sprout debt for Sprout equity, resulting in Neptune ownership of approximately 89.5% of Sprout
- The exchange would substantially reduce Sprout's debt
- The term sheet provides for amendments to remaining Sprout promissory notes, including extending maturity date to June 30, 2025
- There can be no assurances that the transaction or the exchange will be consummated
Neptune has the option within 90 days to exchange existing Sprout debt for Sprout equity resulting in Neptune ownership of approximately
The term sheet further provides for amendments to remaining Sprout promissory notes in the event that the Exchange is consummated, including that such promissory notes would have their maturity date extended to June 30, 2025 and the termination of the guarantee currently provided by the Company. The term sheet further specifies certain terms governing a transaction that, if consummated, would result in Sprout becoming an independent trading entity. There can be no assurances that such a transaction or the Exchange will be consummated.
Neptune is a consumer-packaged goods company that aims to innovate health and wellness products. Founded in 1998 and headquartered in
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 Exchange or other transactions being consummated, Neptune's ability to consummate the Exchange or the receipt of any required consents.
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SOURCE Neptune Wellness Solutions Inc.