Neptune Announces At-the-Market Offering, Stock Drops More Than 18%

Neptune Wellness Solutions Inc NEPT NEPT announced Wednesday that it has entered into an open market sale Agreement with Jefferiers. 

Neptune may sell at-the-market offerings — with Jefferies acting as a sales agent — its common shares with an offer price of up to $50 million.

The listing of any shares sold under the ATM facility is subordinate to the endorsement of the Toronto Stock Exchange and NASDAQ, according to Neptune. 

Jefferies will use its commercial efforts to sell common shares at market prices. Sales in the ATM program will only be conducted in the United States through NASDAQ at market prices or at prices to be negotiated with the applicable purchaser.

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No sales will be conducted in Canada or through the Toronto Stock Exchange, according to Neptune. 

The cannabis company said it intends to use the proceeds from sales together with its existing capital for operating expenses, capital expenditure requirements and general corporate purposes.

Neptune shares were down 18.79% at $1.21 at the close Wednesday. 

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