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Laval, Québec, CANADA – July 18, 2019 – PRESS RELEASE – Neptune Wellness Solutions Inc., a North American cannabinoids extraction, formulation and packaging company, has completed a private placement with both existing and new institutional investors, led by Perceptive Advisors, resulting in gross proceeds to the company of US$41.4 million. John Moretz, chairman of the board, and Michael Cammarata, president and CEO of Neptune, invested US$5.0 million in the aggregate as part of this offering. Upon closing of the offering, the company issued an aggregate of 9,415,910 common shares of the company at a purchase price of US$4.40 per share.

“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,” said Moretz. “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.”

A portion of the net proceeds from the offering is expected to be used by the company to fund the initial consideration for the acquisition of the assets of SugarLeaf Labs LLC and Forest Remedies LLC, while the balance of such net proceeds is expected to be used for working capital and general corporate purposes. Neptune expects the SugarLeaf transaction to close on or before July 31, 2019.

“This financing comes at a pivotal point in the company’s cannabis growth trajectory, particularly given the need to expand our current annual capacity of 200,000 kg, which is fully contracted for both fiscal 2020 and fiscal 2021,” said Cammarata. “With this in mind, we look forward to closing the SugarLeaf transaction, which brings U.S.-based capacity, efficient production of high-quality extracts, and strong supplier relationships, all of which create a strong value proposition for our customers.”

Cowen acted as lead placement on the offering and the sole U.S. placement agent to the company. GMP Securities, L.P. acted as lead Canadian placement agent and Echelon Wealth Partners and Desjardins Securities also acted as placement agents for the company.

The securities sold in the offering have not been registered under the Securities Act of 1933, as amended, or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission (SEC) or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The securities sold in the offering will also be subject to standard statutory hold periods in Canada and the United States in accordance with applicable securities laws. The company has agreed to enter into a registration rights agreement with investors within 180-days following the closing of the offering whereby the company will to prepare and make necessary filings with the SEC to allow for the registration of the resale of shares sold in the offering.

Along with Cammarata, Moretz and Perceptive Advisors, certain other members of the board and management of the company participated in the offering. Participation of these insiders in the offering constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101). The offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities issued to insiders nor the consideration for such securities by insiders will exceed 25 percent of the company’s market capitalization. The company did not file a material change report 21 days prior to closing of the offering as the details of the participation of insiders of the company in the offering had not been confirmed at that time.