Partnership to accelerate Neptune's
entry into the B2C market with the Forest Remedies brand
Plans are to develop branded products across
the large and growing cosmetics, personal and home
care markets
LAVAL, QC, Nov. 11, 2019 /CNW Telbec/ - Neptune
Wellness Solutions Inc. ("Neptune" or the "Company") (Nasdaq: NEPT)
(TSX: NEPT), a health and wellness company focused on extraction,
purification and formulation of cannabinoids, is pleased to
announce that it has entered into a collaboration agreement with
International Flavors & Fragrances Inc. (NYSE:
IFF) ("IFF") to co-develop hemp-derived CBD products for the
mass retail and health & wellness markets. App Connect Service,
Inc. ("App Connect") is also a party to the agreement to provide
related branding strategies and promotional activities. In
conjunction with the co-development partnership, Neptune will issue
to warrants(1) to IFF.
Under this strategic product development
partnership, IFF will leverage its intellectual property (IP)
for taste, scent and nutrition to provide
essential oils and product development resources. Neptune will
leverage its proprietary cold ethanol extraction
processes and formulation IP to deliver high quality, full- and
broad-spectrum extracts for the development, manufacture and
commercialization of hemp-derived products, infused with essential
oils, for the cosmetics, personal care and home
care markets.
The first products are expected to launch under Neptune's Forest
Remedies brand at U.S. retailers in the first half of calendar
2020. The Initial launch will include a variety of topical products
across the aromatherapy category, a market estimated at
approximately $3 billion annually.
Additional category launches should follow and the total SKU count
could ultimately exceed 50 SKUs. Neptune will be responsible for
the marketing and sale of the products. Neptune will record
revenues from product sales and in turn will pay a royalty to each
of IFF and App Connect associated with the sales of co-developed
products(2).
"The agreement represents a significant event in the development
of our global cannabis business, expanding our business model from
primarily B2B to include a robust B2C business platform. IFF has an
impressive track record, remarkable capabilities and global reach.
This partnership will accelerate Neptune's vision and growth
strategy to be the leading producer of hemp extracts ingredients
and finished products for the global health & wellness and
Consumer Packaged Goods industries. We are also now better
positioned to leverage our management's experience building brands
and relationships with key North American retailers,"
stated Michael Cammarata, CEO of Neptune.
"We are pleased to enter this strategic partnership and drive
innovation that satisfies customers' demands for quality,
sustainability and traceability," said Nicolas Mirzayantz,
Divisional CEO, Scent at IFF. "The hemp-derived CBD products we are
developing will target consumer preference towards natural health
& wellness products."
Christophe de Villeplee, IFF's SVP Global Consumer Fragrance
added, "With health & wellness a key pillar of IFF's strategy,
we believe this new partnership will greatly benefit from IFF-LMR's
global expertise and leadership in naturals.
(1) Neptune will issue to IFF 2,000,000
warrants, each warrant allowing the holder to purchase one common
share of Neptune at an exercise price of USD $12.00 per share with a 5-year expiration date.
The issuance of warrants discussed in this press release is subject
to Toronto Stock Exchange ("TSX") approval.
(2) App Connect is a company indirectly controlled by
Michael Cammarata, CEO and Director
of Neptune. As a result, the payment of royalties to App Connect
under the agreement as contemplated above is also subject to TSX
approval.
About Neptune Wellness Solutions Inc.
Neptune Wellness
Solutions specializes in the extraction, purification and
formulation of health and wellness products. The Company has in
excess of 100 customers across several verticals including legal
cannabis and hemp, nutraceutical and consumer packaged goods.
Neptune's wholly owned subsidiary, 9354-7537 Québec Inc., is
licensed by Health Canada to process cannabis at its
50,000-square-foot facility located in Sherbrooke, Quebec. The Company also has a
24,000 square-foot facility located in North Carolina to process hemp biomass into
extracts. Neptune brings decades of experience in the natural
products sector to the legal cannabis and hemp industries.
Leveraging its scientific and technological expertise, the Company
sees applications for hemp-derived extracts in the U.S. beyond
existing markets and product forms and into personal care and home
care markets. Neptune's activities also include the
development and commercialization of turnkey nutrition solutions
and patented ingredients such as MaxSimil® and a variety of marine
and seed oils. Its head office is located in Laval, Quebec.
Forward Looking Statements
Statements in this press
release that are not statements of historical or current fact
constitute "forward-looking statements" within the meaning of the
U.S. securities laws and Canadian securities laws. Such
forward-looking statements involve known and unknown risks,
uncertainties, and other unknown factors that could cause the
actual results of Neptune to be materially different from
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms "believes", "belief",
"expects", "intends", "projects", "anticipates", "will", "should"
or "plans," or which refer to expectations, projections or other
characterizations of future events or circumstances, to be
uncertain and forward-looking. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release.
The forward-looking statements contained in this press release
are expressly qualified in their entirety by this cautionary
statement and the "Cautionary Note Regarding
Forward-Looking Information" section contained in Neptune's
latest Annual Information Form (the "AIF"), which also forms part
of Neptune's latest annual report on Form 40-F, and which is
available on SEDAR at www.sedar.com, on EDGAR at
www.sec.gov/edgar.html and on the investor section of Neptune's
website at neptunecorp.com. All forward-looking statements in this
press release are made as of the date of this press release.
Neptune does not undertake to update any such forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by law. The forward-looking
statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in
Neptune's public securities filings with the Securities and
Exchange Commission and the Canadian securities commissions.
Additional information about these assumptions and risks and
uncertainties is contained in the AIF under "Risk Factors".
Neither NASDAQ nor the Toronto Stock Exchange accepts
responsibility for the adequacy or accuracy of this release.
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SOURCE Neptune Wellness Solutions Inc.