Neptune Wellness reports wider loss, enters CBD co-development deal with International Flavors & Fragrances - MarketWatch

Neptune Wellness reports wider loss, enters CBD co-development deal with International Flavors & Fragrances - MarketWatch

Neptune Wellness Solutions Inc. NEPT, +6.95% NEPT, +8.51% reported Monday a fiscal second-quarter net loss that widened to C$20.78 million ($15.7 million), from a loss of $3.05 million a year ago. The Canada-based cannabis extraction company said the increased loss is due primarily to an increase in stock-based compensation expense, depreciation and amortization and increased expenses on contingent consideration. Revenue fell to C$6.51 million ($4.9 million) from C$7.07 million. Cannabis revenue reached C$1.22 million after having no cannabis revenue last year, while nutraceutical revenue fell to C$5.15 million from C$7.07 million, due to the timing of orders of the nutrition business. Separately, Neptune announced an agreement with International Flavors & Fragrances Inc. IFF, -0.46% to develop hemp-derived cannabidiol (CBD) products for the mass retail and health and wellness markets. Under terms of the agreement, Neptune will issue 2 million warrants to IFF, which each warrant allowing the purchase of one Neptune common share at an exercise price of $12.00 per share. The co-development agreement will include a variety of topical aromatherapy products. Neptune's U.S.-listed stock, which was still inactive in premarket trading, has tumbled 27% over the past three months, while the ETFMG Alternative Harvest ETF MJ, +4.36% has plunged 31% and the S&P 500 SPX, +0.26% has gained 6.0%.

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2019-11-11 11:52:00Z
https://www.marketwatch.com/story/neptune-wellness-reports-wider-loss-enters-cbd-co-development-deal-with-international-flavors-fragrances-2019-11-11
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