Neptune Wellness Solutions mulls possible partnerships, acquisitions and transactions as part of strategic review

08 Aug 2023 --- Neptune Wellness Solutions, specializing in plant-based, sustainable and purpose-driven lifestyle brands, has initiated “Phase II” of a comprehensive company review and evaluation of strategic options geared toward “unlocking” shareholder value.

This second phase will encompass consideration of all available strategic business and financial alternatives, according to the company.

This could include the monetization of assets, strategic partnerships, and perhaps the acquisition of the remaining parts of Sprout Organics through an equity/debt transaction.

Neptune began the first phase of its strategic review in 2021 when it streamlined operations and maximized resources to realize cost savings. 

“More to be done”
“An essential part of this was the strategic divestiture and disposal of non-core assets to set the stage for our long-term goals. While we made significant strides, we recognize there’s more to be accomplished,” says Michael Cammarata, CEO and president of Neptune Wellness Solutions.

The second phase will encompass consideration of all available strategic business and financial alternatives, according to the company.“The Board and management deem it prudent to promptly commence the next phase of our strategic review process. As a business, Neptune Wellness occupies a distinctive position in the current market landscape, providing an innovative platform solution that bridges brands and consumers. Our acquisition of a majority stake in Sprout Organics in 2021 and the subsequent progress we’ve made only serve to highlight the innovative potential of this approach.”

The launch of the second phase comes on the heels of the promotion of Lisa Gainsborg, Neptune’s financial controller, to the interim chief financial officer, replacing Raymond Silcock, who resigned for personal reasons.

Julie Phillips, Chair of the Board, adds, “Phase I of our strategic review was focused on building a strong foundation from which Neptune will be positioned to stabilize and grow into a pure-play CPG company. 

“Our decision to formally commence Phase II of this strategic review reflects our commitment to rebuilding and enhancing shareholder value.”

The Board anticipates it will conclude this review and announce the strategic plan by Q1 or Q2 of 2024, intending to take action before the end of the calendar year. 

However, there is no assurance that this process will result in any specific transaction or that any transaction will be successful, the company notes.

There is also no assurance as to the specific terms or timing for any agreed transaction if one were to result. 

Edited by Gaynor Selby