LAVAL, QC, March 26, 2019 /CNW Telbec/ - Neptune
Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ:
NEPT) (TSX: NEPT) is pleased to announce that it has completed
initial commercial production lots and is now shipping cannabis
extracts from its licensed, GPP facility in Sherbrooke, Quebec.
After receiving its standard processing licence from Health
Canada on January 4, 2019, Neptune
completed required testing and commissioning of its Phase 1
(CO2-based) extraction installation, after which it
produced its first lots of cannabis extract. Upon successful
analysis and testing, the products are now being shipped and
invoiced.
"The quality of the extracts in Neptune's first production runs
at our state-of-the-art facility has been terrific, and we are
proud to begin deliveries. This marks an important step forward in
the execution of our vision to lever our decades of extraction and
wellness industry experience towards becoming the world's leader in
the extraction, purification and formulation of value-added,
differentiated cannabis products," said Jim
Hamilton, President and CEO of Neptune.
Commencing commercial cannabis production means that Neptune
will record its first Cannabis Business revenue in the current
fiscal year ended March 31, 2019,
adding to revenue generated by the Company's long-standing
Nutrition Business and putting the Company on a new growth
trajectory.
"Generating Cannabis Business revenue is a long-awaited
milestone for Neptune, and we continue to expect positive EBITDA
from this business within our first year of production. With strong
market demand dynamics, current firm commitments of at least
150,000 kg, and line of sight to more than double this amount
of cannabis and hemp for extraction over the next three
years, we are on solid ground to deliver increasing sales volumes.
It is a very exciting time for our entire organization, and our
production and commercial teams are fully committed to drive
production and sales to our full capacity," said Neptune Chief
Financial Officer Mario Paradis.
The completion of investments for installation of Phase 2
ethanol-based extraction equipment remains on track for the end of
March 2019, with operations planned
to ramp up progressively towards a total annual processing capacity
of 200,000 kg by July 2019, pending
regulatory approvals.
As the global market for cannabinoid products grows rapidly and
the Canadian market readies itself for new, extract-based product
categories slated for legalization in October 2019, Neptune has also initiated, as
previously disclosed, planning for the third phase of its capacity
expansion investments, which will bring its total extraction
capacity to 6,000,000kg by retrofitting equipment already installed
in its facility.
"Our aim is to support our partners in seizing together all
opportunities that the upcoming Canadian market for edibles,
topicals and concentrates offer, and in growing in step with the
market opportunities afforded by the rapidly evolving US and global
regulatory landscape," Mr. Hamilton concluded.
About Neptune Wellness Solutions Inc.
Neptune
Wellness Solutions specializes in the extraction, purification and
formulation of health and wellness products. Licensed by Health
Canada to process cannabis at its 50,000 square foot facility
located in Sherbrooke, Quebec,
Neptune brings decades of experience in the natural products sector
to the legal cannabis industry. Leveraging its scientific and
technological expertise, Neptune focuses on the development of
value-added and differentiated products for the Canadian and global
cannabis markets. Neptune's activities also include the development
and commercialization of turnkey nutrition solutions and patented
ingredients such as MaxSimil®, and of 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" 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.
Forward-looking information in this press release includes, but is
not limited to, information or statements about our ability to
successfully develop, produce, supply, promote or generate any
revenue from the sale of any cannabis-based products in the legal
cannabis market.
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.shtml and on the investor section of
Neptune's website at www.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 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.