Neptune Wellness Solutions Inc. has made a name for it in the cannabis market after it switched to cannabis from its nutraceutical origins with mainly krill oil. Since the company made the jump from nutraceuticals to cannabis, it has entered into three separate agreements with widely recognized cannabis corporations. Neptune Wellness is also in the process of securing a product development agreement for hemp-derived cannabidiol (CBD) products in the United States. Those who pay close attention to the progress of the new development deal may have the opportunity to position themselves before the company increases in value.
Neptune Wellness also has three separate extraction agreements with some of the largest cannabis corporations in the sector. Canopy Growth, Tilray, and The Green Organic Dutchman (TGOD) all have multi-year extraction deals with Neptune Wellness. TGOD has the highest defined minimum amount of dried cannabis flower for extraction at 230,000kg. However, both TGOD’s and Canopy Growth’s extraction deals include purification and formulation.
The company made it known to the public last week that it started to pursue a product development collaboration with International Flavors & Fragrances Inc. and co-develop hemp-derived products for the U.S. CBD market. Neptune Wellness would see tremendous gain in a co-development deal with International Flavors & Fragrances’ worldwide reach and experience. International Flavors & Fragrances has its headquarters in New York City, 35 manufacturing facilities in different countries, and is a part of the S&P 500 Index.
Lastly, Neptune Wellness entered into a $3 million warrant deal at CA$8 per share with American Media LLC for brand growth in the United States. American Media owns several popular media outlets like Men’s Journal®, Us Weekly®, OK!, and Life & Style and will work to spread awareness of Neptune’s brands such as Forest Remedies™ and OceanO3®. The total circulation of all American Media’s print-style medium is more than 5.7 million with a reach of at least 53 million monthly readers. The data for American Media’s online presence is even bigger with higher than 65 million unique visitors and above 762 million page views per month. Investors will want to consider the possibility of the partnerships with International Flavors & Fragrances and American Media LLC as the two could monumentally increase Neptune’s brand recognition in the U.S. and increase its revenues.
Curious about how you can make money investing in cannabis? Sign up for Cannin Free Access and subscribe to the Cannin Chronicle. We’ll keep you informed on all things cannabis and even help you determine which cannabis companies have the highest growth potential.