Neptune Wellness Solutions Inc. Announces US$12.65 Million Registered Direct Offering

Rhea-AI Summary

Neptune Wellness Solutions Inc. (NEPT) has announced a registered direct offering of 4,773,584 common shares at a price of US$2.65 per share, aiming to raise gross proceeds of approximately US$12.65 million. The funds will be allocated for working capital and general corporate purposes. The offering is expected to close on July 15, 2020, pending customary closing conditions. A.G.P./Alliance Global Partners is acting as the sole placement agent for this offering.

Positive

• The offering is expected to raise approximately US$12.65 million for working capital.

Negative

• Issuing new shares may lead to dilution of existing shareholders' equity.

LAVAL, QC, July 13, 2020 /PRNewswire/ - Neptune Wellness Solutions Inc. ("NEPT" or the "Company") (TSX: NEPT) (NASDAQ: NEPT), a health and wellness company focused on extraction, purification and formulation of cannabinoids, today announced it has entered into definitive agreements with certain healthcare-focused institutional investors for the sale of 4,773,584 common shares at an offering price of US$2.65 per share for gross proceeds of approximately US$12.65 million before deducting fees and other estimated offering expenses, pursuant to a registered direct offering (the "Offering").

The Company expects to use the net proceeds from the Offering for working capital and other general corporate purposes. The Offering is expected to close on or about July 15, 2020, subject to the satisfaction of customary closing conditions, including, but not limited to, the listing of the common shares on the Toronto Stock Exchange and the NASDAQ and any required approvals of each exchange and applicable regulators.

A.G.P./Alliance Global Partners is acting as sole placement agent for the Offering.

The Offering is being made in the United States only under the Company's amended and ‎restated short form base shelf prospectus dated February 22, 2019 (the "Base Shelf ‎Prospectus"), filed with the securities regulatory authorities in each of the provinces and ‎territories of Canada, and the corresponding registration statement on Form F-10 (the ‎‎"Registration Statement") filed by the Company with the U.S. Securities and Exchange ‎Commission ("SEC") under the U.S./Canada Multijurisdictional Disclosure System ("MJDS"). ‎The Company will file a prospectus supplement (the "Supplement") to the Base Shelf Prospectus on a non-offering basis with applicable securities regulatory authorities in Canada. The Supplement will also be filed with the SEC as part of the Company's Registration Statement under the MJDS. Copies of the Supplement and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com and copies of the Supplement and the Registration Statement will be available on EDGAR at www.sec.gov.

Copies of the Supplement, the Base Shelf Prospectus and the Registration Statement may also be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022 or via telephone at 212-624-2006 or email: prospectus@allianceg.com.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Neptune Wellness Solutions Inc.

Neptune Wellness Solutions is a diversified and fully integrated health and wellness company. Through its flagship consumer-facing brands, Forest Remedies™ and Ocean Remedies™, Neptune is redefining health and wellness by building a broad portfolio of natural, plant-based, sustainable and purpose-driven lifestyle brands and consumer packaged goods products in key health and wellness markets, including hemp, nutraceuticals, personal care and home care.  Leveraging decades of expertise in extraction and specialty ingredient formulation, Neptune is a leading provider of turnkey product development and supply chain solutions to businesses and government customers across several health and wellness verticals, including legal cannabis and hemp, nutraceuticals and white label consumer packaged goods.  The Company utilizes a highly flexible and low cost supply chain infrastructure that can be scaled up and down or into adjacent product categories to quickly adapt to market demand. Neptune's corporate headquarters is located in Laval, Quebec, with a 50,000-square-foot production facility located in Sherbrooke, Quebec and a 24,000 square-foot facility located in North Carolina.  For additional information, please visit: https://neptunecorp.com/

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.

FAQ

What is the offering price for Neptune Wellness Solutions' shares?

Neptune Wellness Solutions is offering shares at US$2.65 per share.

How much money is Neptune expected to raise from the recent offering?

Neptune is expected to raise approximately US$12.65 million from the offering.

When is the expected closing date for Neptune's stock offering?

The offering is expected to close on July 15, 2020.

What will Neptune do with the money from the offering?

The funds will be used for working capital and other general corporate purposes.

Who is the placement agent for Neptune's offering?

A.G.P./Alliance Global Partners is acting as the sole placement agent.