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neptune wellness cbd

Neptune wellness cbd

The company used third party services to remedy the problem until authorization was approved, but the third party services were more expensive and there were delays in transportation and distribution. Delays in transportation and distribution have plagued all aspects of the company’s operations during the pandemic.

Neptune Wellness Solutions (NEPT) is a Canadian health and wellness company headquartered in Quebec. The sales of cannabis and CBD products make up most of their revenue. They operate in America by selling CBD and non-CBD health products. They sell products in all provinces of Canada in the recreational and medical cannabis markets, as well as CBD and non-CBD health markets. They are beginning to distribute their non-THC products globally.

Cost of Revenue

In addition, net loss was caused by issues with the introduction of new wellness products in America. The company introduced new sanitizer products as well as other pandemic-related health products. There were several problems with rolling out the products efficiently. Although the issues are fixed now and revenue will be seen from these ventures, the company had to apply for approval and license with the EPA and FDA before the products could be delivered in America.

The company is operating at a loss, but there is promise after recovery

*Q2 and Q3 numbers may be found on Seeking Alpha

***Revenue estimate is from Seeking Alpha

**EV calculations are from www.TIKR.com

There is a significant decrease in revenue from cannabis extractions for other business because the company stopped offering this service. Revenue is down in the US because of issues with SugarLeaf, a subsidiary of the company, which lost its business due to the pandemic. Because of the pandemic, SugarLeaf had to furlough employees and no longer produced product or placed orders with Neptune. Neptune decided to take accelerated amortization for the asset (CA7.7M and CA6.3M).

The company has been making Direct Offerings and selling Warrants to raise capital. On their Q3 report, they list an offering last July with proceeds of 12.6M (after fees) and another Direct Offering along with Warrants in October with proceeds of $35M (after fees). In February, the company announced their newest Direct Offering of $55M (before fees). With this working capital and their current assets, there is no risk of liquidity or insolvency. Cash on hand outweighs their current liabilities. Offerings and Warrants guarantee their future activities.

Neptune cannabis products are available for adult-use in Alberta , British Columbia and Ontario . With the launch of PanHash in Quebec , Neptune's PanHash™ and Mood Ring™ products may be sold in up to 1,600 locations throughout Canada and broadens distribution to more than 80% of Canada's total addressable market for legal cannabis.

LAVAL, QC , May 27, 2021 /CNW Telbec/ – Neptune Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated company, today announced the launch of PanHash™ in Quebec .

PanHash™, Neptune's cannabis brand specifically developed to reflect Neptune's Quebec roots and heritage, is launching two products with a high concentration of CBD: a cannabis oil and capsules. These products are produced using the Company's proprietary cold ethanol extraction process, which consumes significantly less energy than traditional CO2 extraction, preserving a high concentration of the plant's terpenes.

Michael Cammarata , Neptune's President and Chief Executive Officer, stated, "Entrance into Quebec , one of Canada's most populated provinces, is an important milestone in the expansion of our cannabis consumer packaged goods product lines. Our team remains committed to working closely with growers and distribution partners who share the same core values of sustainability, responsibility, and excellence to continue providing consumers with the safest and highest quality products available."

Neptune wellness cbd

Executive Management. Following the request of the Company’s current management, the Board has decided to expand the leadership team to support the execution of the Company’s vision. Neptune will be adding a president dedicated to supporting the North American CPG brand portfolio. This position, when filled, will report directly to Michael Cammarata . Additionally, Neptune recently hired Emily Fletty as Vice President of Human Resources, who brings significant experience leading human resources functions at multiple dynamic growth organizations.

Mr. Cammarata added, "Today, all our business verticals, except Cannabis are positively contributing to gross margin. Mood Ring has exceeded our expectations and will achieve scalability soon. Transforming from a B2B cannabis and hemp extractor to a full-scale disruptive and diversified CPG company during an unprecedented global pandemic and economic instability around the world, while challenging, was absolutely the right thing to do for the long-term value creation our shareholders expect. I am thankful to have the unanimous support of the Board of Directors (the "Board"), the overwhelming support and patience of our long-term institutional investors, and most of all the hard work of our associates at Neptune to make this transformation a success.

Organic Foods and Beverages. Neptune acquired a controlling interest in Sprout Foods, Inc., ("Sprout") in February 2021 , and the full integration is ahead of expectations. Sprout is an integral piece of Neptune’s health and wellness portfolio and represents a key brand within the Organic Foods and Beverages vertical. Since completing the Sprout acquisition, the Company has begun expansion efforts in Sprouts’ distribution substantially in all of Target’s U.S. retail stores. The Company also expects to launch Sprout products in Canada and the UK during the second fiscal quarter.

Cannabis. Neptune made significant progress expanding its product distribution in the Canadian cannabis market over the last several months. The Company received authorization to sell its Mood Ring and PanHash products in four provinces ( British Columbia , Ontario , Alberta and Quebec ). Products are currently sold in British Columbia and Ontario , with plans to begin sales in Alberta and Quebec soon. Additionally, Neptune recently received a license amendment from Health Canada to allow the sale of dried cannabis flower and pre-rolled cannabis joints throughout the Canadian market.

Nutraceuticals. Neptune is focused on expanding its exclusive Omega-3 delivery technology MaxSimil® while improving growth and profitability in its Nutraceuticals vertical. This includes expanding the supply and manufacturing base, which is expected to significantly lower production costs and improve gross margins and returns on invested capital. The MaxSimil® product lineup will be expanded with the launch of two new consumer products: MaxSimil® with CoQ10 and MaxSimil® with Curcumin. Additionally, the Company plans to launch a new consumer line of Vitamin Sprays and Pumps for both children and adults with selected retail partners. To support anticipated accelerated growth, the Nutraceuticals U.S. sales force has been expanded to maximize awareness and distribution of the capabilities and expertise in CBD formulation, prebiotics and probiotics, and proteins within this important vertical.

"We have made tremendous progress transforming a 22-year-old company in less than two years. We are in a unique time in history, and we believe that the opportunities ahead of us are immense," said Michael Cammarata , President and Chief Executive Officer of Neptune. "We are forging a new path in consumer health and wellness, with industry-changing implications. We are confident that our actions will position us for strong, disciplined growth, margin expansion and the development of a portfolio of innovative and defensible products and brands."

"Michael’s vision, unanimously supported by the Board of Directors, positions the Company for accelerated growth across multiple business verticals," said John Moretz , Chairman of the Board of Directors for Neptune. "The scale of Neptune’s transformation is truly remarkable and should position the Company for significant long-term top-line growth. I have long said the most successful companies in any industry must continually transform and evolve to changing conditions. Michael’s vision to quickly evolve in the face of a global pandemic and economic strife was the right decision at the right time."