Neptune Wellness (TSX: NEPT) (NASDAQ: NEPT) is looking to raise US$55.0 million a day after posting dismal financial results. The company has reportedly entered into arrangements with a number of institutional investments for the financing.
Under the terms of the financing, a total of effectively 27.5 million units of the company. The financing will see common shares sold under one placement, while a concurrent placement will see the sale of warrants, with each common share and one quarter of a common share purchase warrant being sold for a combined price of US$2.00.
Warrants issued under the placement will contain an exercise price of US$2.25 per share, and are exercisable six months after the date of issuance while having an expiry 5.5 years from the date of issuance.
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Proceeds from the financing are to be used for working capital and general corporate purposes.
The financing is expected to close February 19, 2021.
The announcement this morning follows a release issued early today, wherein the company indicated it has terminated its at-the-market offering that was in place via Jefferies. A total of US$18.6 million was raised in gross proceeds from the sale of 9.6 million shares.
Neptune Wellness last traded at $1.94 on the Nasdaq.
Information for this analysis was found via Sedar and Neptune Wellness Solutions Inc. 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.
