Neptune Wellness Solutions Inc (NASDAQ:NEPT) has posted revenues of $9,175 CAD in Q3 2020. It is an increase of 40% when compared to the same period last year. It has reported revenues of $2,811 CAD in Q3 2019 from the cannabis segment. The company also earned significant revenues from neutraceuticals.
Strategic alliance with American Media
Neptune entered a strategic alliance with American Media LLC on October 4, 2019. As per the terms of the pact, Neptune will receive a sum of $12 million from American Media for creative and advertising services to support its commercialization and marketing of the consumer-facing brands in the United States.
Monthly readership of American Media increases
The total circulation of American Media brands is more than 5.7 million and expects to reach a readership of more than 53 million every month. Under the terms of the accord, American Media can invest in Neptune through issuing its 3 million warrants. Each warrant holder can acquire one common share of Neptune. The price for each common share is $8 over five years.
Enters a collaboration pact with Flavors & Fragrances Inc
Neptune entered a collaboration accord with Flavors & Fragrances Inc on November 11, 2019. As per the terms of the agreement, Neptune and Flavors & Fragrances will jointly develop hemp-derived CBD products to meet the growing demand in the health and wellness and retail segment. Flavors & Fragrances will provide its IP (intellectual property) for scent, taste, and nutrition for use in essential oils. The company will also provide its product development resources.
Neptune agreed to provide its formulation IP, and cold ethanol extraction processes to produce high quality, broad and full-spectrum extracts to develop, produce and commercialize essential oils infused and hemp-derived products to meet the demand for home care, personal care, and cosmetics markets. The accord allows Flavors & Fragrances to become a shareholder in Neptune through issuing 2 million warrants. Each warrant holder can acquire one common share of Neptune $12 for each share within five years.
Developments after the end of the quarter
Neptune entered a pact with the producer of 3D printed food/ candy products on January 27, 2020. As per the terms of the pact, Neptune becomes the exclusive distributor for the 3D printed consumer products to meet the growing need of the CBD markets in the US.