Monday, September 15, 2025

Neptune Wellness Announces US$8 Million Financing, Releases Letter To Shareholders To Justify Move

How do you know the market isn’t going to like a financing? When a company feels the need to subsequently release a letter to shareholders right after announcing it.

Neptune Wellness (TSX: NEPT) this morning announced that it will be raising gross proceeds of US$8.0 million via a registered direct offering. The financing is being conducted with a single investor whom is said to be strategic in nature and consumer-focused.

The financing will see the company issue 18.5 million common shares under the offering, as well as 6.5 million “pre-funded” warrants. Also being issued is 25.0 million Series A, and 25.0 million Series B warrants. The common shares are being sold with Series A warrants at US$0.32 per share, while the pre-funded warrants are being sold with Series B warrants, also at US$0.32 per share, in what may just be the most overly complicated registered direct offering possible.

Pre-funded warrants are to be funded in full at closing for a nominal figure, and are exercisable upon the closing date of the financing, expiring when exercised in full.

Series A warrants are valid for a period of five and a half years with an exercise price of US$0.32 per share, while Series B warrants will have the same exercise price but expire 18 months after issuance.

Proceeds from the financing are to be used for working capital and general corporate purposes.

In the subsequent letter to shareholders released by the firm, the company stated that it expects the financing to “enhance the long-term opportunity for success for Neptune Wellness shareholders.” The firm also pointed to current rising “geopolitical risks” as an excuse to raise the funds, although its unclear the direct implication for the company.

Further, the company is reportedly on the hunt for a lender as they look to source $20 to $25 million in cash proceeds to supplement their current cash. The company reported a cash position of $16.6 million as of December 31.

Neptune Wellness last traded at $0.415 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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