NEPTUNE WELLNESS ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Neptune Wellness Solutions, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces a class action lawsuit has been filed in the US District Court for the Eastern District of New York on behalf of investors who have purchased Neptune Wellness Solutions. Inc. (NASDAQ: NEPT) securities between July 24, 2019 and February 16, 2021 inclusive (the “Class Period”). Investors have until May 17, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
Click here to take part in the promotion.
On May 9, 2019, Neptune announced that it had formulated and formulated a definitive agreement to acquire the assets of SugarLeaf Labs, LLC and Forest Remedies LLC (collectively “SugarLeaf”), a North Carolina-based commercial hemp company providing extraction services Products (the “SugarLeaf Acquisition”). On July 24, 2019, Neptune announced the completion of the SugarLeaf acquisition.
On February 15, 2021, Neptune announced disappointing financial results for the company’s third quarter of fiscal 2021 due to a lack of analyst expectations. Among other things, Neptune had third-quarter sales of CA $ 3.32 million and a net loss of CA $ 73.8 million, a decrease of 63.81% and more than 1,000% year over year. Neptune attributed the net loss in part to a goodwill impairment of CA $ 35.6 million and an impairment of “property, plant and equipment and rights of use related to the acquisition of SugarLeaf in July 2019” of CA $ 2.1 million as accelerated amortization of CA $ 13.95 million “also in connection with the acquisition of SugarLeaf”. In addition, the company announced that its “[g]The Ross margin fell to a loss of 268.3%. This included a non-cash write-down of inventory and deposits of CA $ 7.39 million to reflect their net realizable value.
In the news, Neptune’s share price fell $ 0.86 per share, or 30.71%, to close at $ 1.94 per share on February 16, 2021.
On February 17, 2021, ahead of the day’s trading session, Neptune released a press release announcing the termination of a market offering conducted by the company that sold 9,570,735 of its common shares and raised approximately $ 18.6 million in Gross proceeds. Minutes later, Neptune issued a second press release announcing that the company is making a $ 55 million registered direct offering.
In the news, Neptune’s share price fell another $ 0.21 per share, or 10.82%, to close at $ 1.73 per share on February 17, 2021.
The complaint, filed on March 16, 2021, alleges that throughout the class period, defendants made materially false and misleading statements about the company’s business, operational and compliance policies. In particular, Defendants made false and / or misleading statements and / or did not disclose that: (i) the cost of Neptune’s integration of the assets and operations acquired in the SugarLeaf Acquisition would be greater than what the Company recognized the company’s capital reserves; (ii) accordingly, it was reasonably foreseeable that the company would have to launch additional stock offers in order to raise more capital; and (iii) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
If you have purchased Neptune Wellness securities during the class and have suffered a loss, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker . Email Melissa Fortunato or Marion Passmore at email@example.com, call (212) 355-4648, or fill out this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.