By Adriano Marchese
Neptune Wellness Solutions Inc. said Monday that it has agreed to sell its cannabis business to a subsidiary of Groupe SiliCycle for about 5.2 million Canadian dollars, the equivalent of US$3.7 million.
The Quebec-based, New York-listed diversified wellness company said it signed a binding agreement with PurCann Pharma Inc. to divest the cannabis business which includes a cannabis plant in Sherbrooke, Quebec, the Mood Ring and PanHash brands, as well as all related assets.
Neptune said that it will use proceeds from the sale for working capital and other general corporate purposes, and that it expects the transaction to close on or before Nov. 15.
“The divestment of the cannabis assets will allow us to realize significant cost savings and operational streamlining from redirected resources towards our simplified corporate structure,” Chief Financial Officer Ray Silcock said.
Write to Adriano Marchese at adriano.marchese@wsj.com
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