Neptune Wellness Solutions Inc. (“Neptune” or the “Company”), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose-driven lifestyle brands, announced that Sprout Foods Inc. (“Sprout”), the Company’s organic plant-based baby food and toddler snack company, has entered into an amendment of each of its existing Secured Promissory Notes to expand from US$22.5 million to a maximum of US$37.5 million.
In connection with this expansion, investment funds managed by Morgan Stanley Expansion Capital (“Morgan Stanley” or “MSEC”) have agreed to immediately commit an additional US$3 million under the expanded Secured Promissory Notes to Sprout.
The maturity date of the note facility of February 1, 2024 is consistent with the maturity date of the existing Secured Promissory Notes with MSEC and Neptune. The funds from the expanded facility are intended to be used for the general working capital needs of Sprout and the repayment of certain existing Sprout debt payable to Neptune. MSEC will be issued 372,670 common shares of Neptune in connection with this expansion.
“The expanded facility shows confidence in Neptune’s strategic shift towards becoming a pure play CPG company and specifically the growth opportunity for Sprout,” said Michael Cammarata, Chief Executive Officer and President of Neptune. “We look forward to expanding our relationship with Morgan Stanley.”
Lincoln Isetta, a Managing Director of Morgan Stanley Expansion Capital, commented, “The expanded facility with Sprout demonstrates our support and optimism for the next stage of growth at Neptune and Sprout, a leader in the organic baby food market. We continue to see exciting potential in this sector and believe Sprout is well-positioned to continue share gains and expand its presence into new categories.”
Sprout Organics is an organic baby food brand that strives to make mealtime easy and fun for parents and babies through delicious snacks and meals made with fresh, organic ingredients. The company aims to make life less complicated, give children a head start in life, and explore new foods with excitement with three simple promises