LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Neptune Wellness Solutions Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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In June 2019, Neptune acquired SugarLeaf Labs, LLC and Forest Remedies LLC (collectively, "SugarLeaf"), a registered North Carolina-based commercial hemp company providing extraction services and formulated products.
On February 15, 2021, Neptune announced net loss of CA$73.8 million for third quarter 2021 due in part to a CA$35.6 million impairment of goodwill and a CA$2.1 million impairment of “property, plant and equipment and right-of-use assets related to the acquisition of SugarLeaf in July 2019,” as well as accelerated amortization of CA$13.95 million “also related to the SugarLeaf acquisition.”
On this news, Neptune’s stock price fell $0.86 per share, or 30.71%, to close at $1.94 per share on February 16, 2021, thereby injuring investors.
Then, on February 17, 2021, before the market opened, Neptune issued a press release announcing the termination of an at-the-market offering conducted by the Company, which would have raised $18.6 million in gross proceeds. Immediately after, Neptune issued a second press release announcing that the Company was conducting a $55 million registered direct offering.
On this news, Neptune’s stock price fell $0.21 per share, or 10.82%, to close at $1.73 per share on February 17, 2021, thereby injuring investors further.
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If you purchased Neptune securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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