A Canadian wellness company has entered into an equity partnership with an American consumer-media company to promote its hemp-derived CBD products in the United States.
Neptune Wellness Solutions, based in Laval, Quebec, developed the deal with New York City-based American Media, a privately held publisher of consumer magazines such as Men’s Journal and Us Weekly.
In exchange, Neptune will issue roughly 3 million new warrants for American Media to become a shareholder. American Media may purchase the common shares for $8 apiece within five years.
The deal will support Neptune’s investment in hemp and CBD products for the U.S. market, including beauty, personal care and home care, according to Neptune CEO Michael Cammarata.
In May, Neptune Wellness Solutions, a company that makes fish-oil supplements and cannabinoid oils, acquired Sugarleaf Labs of Conover, North Carolina, for total considerations of up to $150 million in a cash and stock deal.
Neptune trades as NEPT on the Nasdaq and Toronto Stock Exchange.