Neptune Wellness Announces Agreement on Price of Option to Acquire Remaining Ownership Interest of Organic Baby Food Brand, Sprout Organics
LAVAL, QC, May 2, 2023 /PRNewswire/ - Neptune Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT), a consumer-packaged goods company focused on plant-based, sustainable and purpose-driven lifestyle brands, today announced that it has entered into an agreement that fixes the purchase price for the exercise of the option to acquire the remaining 49.9% minority share of organic baby food brand, Sprout Organics ("Sprout") pursuant to a call option agreement entered into with the minority stockholders of Sprout. The agreement is subject to the exercise of the option and Board approval, as well as the successful arrangement of funding sources to complete the purchase, which Neptune is working to obtain.
Under the terms of the agreement, Neptune may exercise the option to purchase the remaining minority shares of Sprout for $13 million. The agreed purchase price will be allocated between cash and Neptune common shares, with at least $10.5 million paid in cash and the remainder in Neptune common shares. The fixed purchase price is effective until June 15, 2023, after which time the purchase price will be calculated in accordance with the call option agreement.
There can be no assurances that the call option will be exercised or that it will close by June 15, 2023, if at all, that Board approvals will be obtained or that Neptune will be successful in arranging funding sources to complete the purchase.
Neptune acquired the controlling ownership of 50.1% of Sprout in February 2021.
Neptune is a consumer-packaged goods company that aims to innovate health and wellness products. Founded in 1998 and headquartered in Laval, Quebec, the Company focuses on developing a portfolio of high-quality, affordable consumer products that align with the latest market trends for natural, sustainable, plant-based and purpose-driven lifestyle brands. The Company's products are available in more than 27,000 retail locations and include well-known organic food and beverage brands such as Sprout Organics, Nosh, and Nurturme, as well as nutraceuticals brands like Biodroga and Forest Remedies. With its efficient and adaptable manufacturing and supply chain infrastructure, the Company can quickly respond to consumer demand, and introduce new products through retail partners and e-commerce channels. Please visit neptunewellness.com for more details.
Sprout Organics is an organic baby food brand that strives to make mealtime easy and fun for parents and babies through delicious snacks and meals made with fresh, organic ingredients. Sprout aims to make life less complicated, give children a head start in life, and explore new foods with excitement with three simple promises: Keep it real, keep it simple and keep it fun. Sprout uses only the best, real and organic ingredients in everything it makes which means certified organic foods in every bite straight from nature, no GMOs. To learn more, please visit www.sproutorganics.com.
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 exercise of the call option, receipt of Board approvals, securing required funding sources and the closing of the call option.
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SOURCE Neptune Wellness Solutions Inc.
