Neptune Wellness Solutions Inc. announced that it has entered into a Note Purchase Agreement for a private placement of senior secured promissory notes for gross proceeds of $5,000,000 on January 12, 2023. The transaction includes participation from CCUR Holdings, Inc. and Symbolic Logic, Inc. The Notes may be prepaid or redeemed in whole or in part by the Company, subject to the payment of a premium in an amount equal to 10% of the principal amount of Notes being repaid. The Notes issued under the Note Purchase Agreement, and those that would be issued in connection with a Second Closing, are due and payable no later than January 12, 2024, unless earlier accelerated in accordance with the terms of the Note Purchase Agreement, with interest accruing at a rate of 16.5% per annum.

On the same date, the company received its first tranche. The company has received $4,000,000 in the tranche. The company issued to the purchasers of the Initial Notes warrants to purchase a total of 850,000 common shares of the Company exercisable at an exercise price of $0.53 per share at any time until January 12, 2028. No additional warrants will be issued in the event that the Second Closing occurs. The second and final tranche of $1,000,000 is expected to occur no later than February 28, 2023.