Neptune Wellness Solutions Announces Pricing of Public Offering to Raise $4 Million for Expansion and Acquisitions

Neptune Wellness Solutions Inc., a company specializing in plant-based and sustainable lifestyle brands, has announced the pricing of its public offering, which aims to raise approximately US$4 million. The offering consists of 12,121,212 common shares (or common share equivalents) along with accompanying warrants to purchase up to an aggregate of 12,121,212 common shares.

The combined public offering price for each share and accompanying warrant is set at US$0.33. The warrants have an exercise price of US$0.33 per share and will be immediately exercisable upon issuance. They will remain valid for a period of five years from the date of issuance. The closing of the offering is anticipated to take place on or around May 15, 2023, pending the satisfaction of customary closing conditions.

Neptune Wellness Solutions intends to utilize the proceeds from the offering for general corporate purposes, including working capital, capital expenditures, operational needs, and potential acquisitions in complementary businesses. Although no specific agreements have been made regarding acquisitions, the company aims to evaluate potential opportunities and invest in one or more complementary businesses using the offering’s proceeds.

This offering serves multiple purposes for Neptune Wellness Solutions. It will boost the company’s working capital, enhance its ability to access capital markets in the future, and provide additional funds for general corporate purposes. In connection with this offering, certain existing warrants to purchase up to 8,423,733 common shares, which were issued in March 2022, June 2022, and October 2022, will be amended to reduce their exercise prices to US$0.33. The expiration dates of these warrants will align with the closing of the offering, except for a subset of warrants to purchase up to 972,763 common shares, which will expire on June 23, 2029, as initially planned.

A.G.P./Alliance Global Partners has been appointed as the sole placement agent for this offering. The Securities and Exchange Commission (SEC) declared the registration statement on Form S-1, as amended (No. 333-271403), effective on May 10, 2023. Additionally, an issuer free writing prospectus has been filed with the SEC on the same date. Interested parties can access the preliminary and final prospectuses related to the offering on the SEC’s website or obtain copies from A.G.P./Alliance Global Partners.

It is important to note that this press release does not constitute an offer to sell or a solicitation of an offer to buy the securities mentioned. The sale of these securities is subject to the registration or qualification under the securities laws of relevant jurisdictions.