Neptune Wellness swaps debt for equity for bigger share in Sprout

By Marisa Wong

Los Angeles, Nov. 8 – Neptune Wellness Solutions Inc. has effectively converted a substantial portion of its Sprout debt into Sprout equity for the Neptune’s organic baby and toddler food brand, Sprout Organics, according to a press release.

In accordance with the terms of a previously announced exchange option, Sprout debt was exchanged for Sprout equity, resulting in Neptune having increased Sprout ownership to about 89.5% from 50.1%.

According to the release, the debt exchange will significantly improve the strategic positioning for both entities, decreasing expenses, removing Neptune as guarantor for Sprout’s promissory notes, and subject to third party consents, Sprout becoming an independent trading entity.

Neptune is Laval, Quebec-based a consumer packaged goods company focused on plant-based, sustainable and purpose-driven lifestyle brands. Sprout is an organic plant-based baby food and toddler snack company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.