Neptune Wellness Says $41.4M Private Placement Will Help Finance M&A Deals

Cannabis company Neptune Wellness Solutions Inc. NEPT NEPT said Thursday it has completed a private placement delivering gross proceeds to the company of $41.4 million.

Both existing and new institutional investors participated, led by Perceptive Advisors. Neptune CEO and President Michael Cammarata and John Mortez, the chairman of the board, invested $5 million as part of this offering.

Upon closing, Neptune issued a total of 9.42 million common shares with a purchase price of $4.40 per share.

Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 — click here to learn more!

A portion of the proceeds are intended for the cash portion of Neptune's acquisition of SugarLeaf Labs LLC and Forest Remedies LLC, according to the company. 

"The board joins me in thanking investors who participated in this offering and in welcoming our new shareholders to Neptune. Given recent contracts and the announced extraction capacity expansion plans, we are highly confident in the strength of Neptune's business outlook," Moretz said in a statement. 

"My incremental investment in Neptune reflects my conviction in our new CEO and management team and their ability to execute on Neptune's strategy. We opted for this accelerated financing structure to stay on track with the previously announced SugarLeaf closing timeline."

Neptune Wellness Solutions is a producer of a variety of health and wellness products and is licensed to process cannabis at its facility in Sherbrooke, Quebec. It is known for creating turnkey nutrition solutions and patented ingredients such as MaxSimil.

Neptune shares were trading higher by 11.45% to $5.45 at the time of publication Thursday. 

Never miss a news story in the cannabis world. Click here to check out Benzinga Cannabis for more.