Canadian CBD company uses stock shares to buy ad partnership in Us Weekly

Canadian CBD and hemp product manufacturer Neptune Neptune Wellness Solutions has entered into an equity partnership with a publishing and media company to promote its products in an wholly unique way.

Neptune partners with New York City-based American Media, the publisher of huge national titles including Men’s Journal®, Us Weekly®, OK!, Life & Style and niche brands including Powder, Surfer, and Bike, by offering to 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 media company will advertise Neptune products and help support the wellness company’s marketing and commercialization efforts for its CBD products in the U.S.

Neptune Wellness Solutions recently acquired Sugarleaf Labs in May.

Terms of the agreement dictate that American Media will provide advertising and creative services to Neptune to support the marketing and commercialization of Neptune’s consumer-facing brands in the U.S.

American Media will have the opportunity to become a shareholder in Neptune. Neptune will issue to AMI 3,000,000 warrants⁽¹⁾, each warrant allowing the holder to purchase one common share of Neptune at an exercise price of US$8.00 per share and with a 5-year expiration date. The warrants will vest proportionally to the services rendered by AMI. Upon exercise of the warrants AMI will be required to hold the shares acquired for a minimum of 6 months. Neptune expects to leverage most of the advertising services provided by American Media in the next twelve months.

   

“American Media’s pedigree and reach will accelerate the growth of Neptune’s consumer-facing products into the U.S. retail landscape. We are excited to have American Media join the Neptune family,” said Michael Cammarata, CEO of Neptune. “In August, we created Neptune Ventures, our venture capital arm, to foster strategic partnerships. Today’s announcement will help us achieve our mission to redefine health and wellness by utilizing hemp-derived ingredients beyond just consumption. We see hemp-derived applications for beauty, personal care and home care. This further enhances our ability to build a diverse customer base which includes hemp, nutraceutical and consumer package goods companies.”

“We are very excited to partner with Neptune as American Media’s vast portfolio of brands are uniquely positioned to further influence the extraordinary growth potential, and momentum, of the Company. We look forward to our continued collaboration, and success, in this high growth industry,” said American Media Senior Vice President of Corporate Development, Dylan Howard.

Neptune trades as NEPT on the Nasdaq and Toronto Stock Exchange.