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Neptune Wellness NEPT Stock Forecast & Analysis

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D. H. Taylor
(@dhtaylor)
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Neptune Wellness NEPT stock was a Canadian cannabis company that turned into a holistic wellness brand company when they acquire Sprout Organics.  Now, Neptune Wellness is more of a wellness brand company that will be in some 90% of US organic baby food distribution; up from 50%.  They are also in Walmart for distribution with…


   
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Jeff Spahn
(@jeffspahn2011gmail-com)
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Neptune Wellness To Exit Cannabis Buumersiness, Resulting In Firing 50% Of Employees

What is the target price now?

Looks like their just going to do consumer packaging

This planned action is intended to provide significant cost savings and help maximize operational efficiencies, resulting in a 50% reduction in workforce, over 30% reduction of total payroll costs and an estimated annual cost savings of CA$5.8 million ($4.63 million). In addition, the company expects to see additional cost savings from corresponding reductions in corporate overhead costs and professional fees.

"This is the final stage of our transition to a pure play, purpose driven consumer packaged goods company. This strategic divestiture greatly simplifies our overall structure, enabling us to hyper-focus on those areas of the business we believe are best positioned for profitability and growth," stated Michael Cammarata, president and CEO of Neptune. "Of course, the most difficult part of the company and board making this decision is the impact on our workforce. We are committed to working with those employees to ensure they are supported throughout this transition. I extend my deepest gratitude to each and every person impacted by this decision and thank them for their hard work and dedication to Neptune throughout their tenure."

Renewed focus on high-potential business segments

With the planned divestiture of its cannabis business, Neptune is renewing its focus on the core brands – Sprout Organics and Biodroga Solutions – that align closely with future consumer trends and show a greater potential for future growth and profitability.

 

Biodroga Solutions, Neptune's B2B nutraceuticals business, has a strong foundation and a robust pipeline for continued growth. The company's supply chain capabilities and product development expertise can also be applied to future Neptune brand and product innovations. Cedrick Billequey, Biodroga's business leader, also oversees Forest Remedies, a vegan Omega supplement brand, providing synergies between the B2B business and consumer brands.

 


   
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D. H. Taylor
(@dhtaylor)
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Saw this via Twitter earlier. Thing is, he stock might go higher from this because they are exiting a losing business in favor of the more profitable side.


   
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Jeff Spahn
(@jeffspahn2011gmail-com)
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I know what your saying by all the cuts,
But how long will that take they just approved a 35-1 share so that will be about $4.87 a share and and if they don't produce quickly it could potentially be a Nasdaq issue in the near future and now that their out of the THC game and already on Nasdaq any government positive news wouldn't move stock much IMHO Hope it grows and fast


   
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D. H. Taylor
(@dhtaylor)
Noble Member Admin
Joined: 2 years ago
Posts: 1053
Topic starter  

@jeffspahn2011gmail-com You are correct.  But, I do not think they have fully divested their CBD assets yet.  So, they may still get lumped in with any cannabis rally.  

Meantime, I think this could be a long term play.  I thought the food thing was interesting, I just always had a tough time connecting the dots with organic food and CBD.  You can white label out and get the same thing done at a far lower price and, maybe that is in the cards for them in the future.  

This CEO is very high level.  He will be able to make this company work.  That, I do not doubt.  


   
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