NEPT - Neptune Wellness Announces Intention to Spinout Sprout Organics Pursuant to the Morgan Stanley Agreed To Transaction | Benzinga
LAVAL, QC, Sept. 18, 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 after careful consideration and evaluation of potential strategic alternatives to enhance the Company's value, the Board of Directors has approved a plan to proceed with a spinout to Neptune shareholders of a majority of its equity interest in Sprout Organics ("Sprout"), an organic baby food and toddler brand. Upon completion of the spinout, which would follow the previously announced exchange by Neptune of existing Sprout debt for Sprout equity, pursuant to the term sheet entered into with Morgan Stanley as previously announced on August 17, 2023, it is anticipated that Neptune would spinout a majority of its equity interest in Sprout to current Neptune shareholders, and Neptune would keep a retained interest of approximately 10-15%.
The Company believes there are many benefits in proceeding with the contemplated spinout transaction, including reducing Neptune's operating costs and cash requirements and generally reducing Neptune's debt exposure, such that Neptune's overall financial position and cash flows would be improved.
Neptune will provide updates when further details of the proposed spinout transaction are determined. Neptune continues to evaluate additional available strategic options for the Company to unlock and maximize shareholder value, including strategic business and financial ...