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LAVAL, QC, Nov. 16, 2020 /PRNewswire/ – Neptune Wellness Solutions Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on natural, plant-based, sustainable and purpose-driven lifestyle brands, announced today that its Neptune Health and Wellness Innovation Inc. division has landed an aggregate of over US$100 million in new delivery orders (the “Purchase Orders”).

The Purchase Orders come from six different Neptune clients and is indicative of business interest in Neptune as a preferred distributor for major corporations seeking innovative and critical health/wellness products, the Company added.

“We are continuing to vet and add additional products in specific areas which we’ve identified as having the greatest opportunity for growth and success in the health and wellness space, including in personal protective equipment,” a spokesperson for the Company said. “Our footprint for distribution has been growing exponentially over the last several months and we see that continuing through the end of the year.”

Added the spokesperson: “We remain committed to increasing shareholder value as well as confidence and these Purchase Orders are evidence that our B2B and B2C dual go-to-market strategy to serve consumers at both wholesale and retail levels, is yielding consistent, long-term revenue opportunities.”

It should be noted, however, that the purchase orders are not guaranteed, and there is no certainty that all of the orders will be completed or that they will be fulfilled in their entirety.

For more information visit www.neptunecorp.com.

ABOUT NEPTUNE WELLNESS SOLUTIONS INC.:
Neptune Wellness Solutions is a unique global health and wellness company that is changing consumer habits through the creation and distribution of environmentally friendly, ethical and innovative consumer product goods. Neptune’s simultaneous focus on B2C and B2B customer-oriented brand development provides the Company with international reach and scale from its owned and operated facilities that extract and create product formulation, all the way to the sales floor at top global retailers.

Underpinned by a disruptive spirit, Neptune’s diversified, and fully integrated business model focuses on natural, plant-based, sustainable and purpose-driven lifestyle brands and the use of cannabinoids in household products to make them safer, healthier and more effective. Its portfolio includes emerging brands such as Forest Remedies™, Ocean Remedies™, Neptune Wellness™, Mood Ring™, and OCEANO3™, which are poised for rapid growth and expansion.

Backed with a cost-efficient manufacturing and supply chain infrastructure that can be scaled up and down or into adjacent product categories to identify new innovation opportunities, Neptune quickly adapts to consumer preferences and demand, and is bringing its products as well as other Fortune 100 brands to market through strategic distribution partnerships, mass retail partners and e-commerce channels. Neptune is committed to its core mission of redefining health and wellness and helping humanity thrive by providing sustainable consumer focused solutions. For additional information, please visit: https://neptunecorp.com/

FORWARD LOOKING STATEMENTS:
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the U.S. securities laws and Canadian securities laws. These statements are based on certain factors and assumptions, including that the purchase orders will be completed and will be fulfilled in their entirety, that the purchase orders will not be revised after delivery and are not decreased or increased in accordance with the customer’s needs, the availability of sufficient cash or credit facilities for Neptune to fund its purchase orders, expected financial performance, the effect of the ongoing global COVID-19 public health emergency on Neptune’s operations, business prospects, and its effect on supply chains and delays, unexpected failures in third party manufacturers and logistics, including delays at customs or ports of entries, capacity constraints, regulatory issues or quality control problems, the failure of Neptune’s suppliers to meet Neptune’s requirements, and the price at which Neptune will sell such products and like matters. While Neptune considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes”, “belief”, “expects”, “intends”, “projects”, “anticipates”, “will”, “should” or “plans” to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the “Cautionary Note Regarding Forward-Looking Information” section contained in Neptune’s latest Annual Information Form (the “AIF”), which also forms part of Neptune’s latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on the investor section of Neptune’s website at www.neptunecorp.com. All forward-looking statements in this press release are made as of the date of this press release. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under “Risk Factors”. Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Neptune Wellness Solutions Inc.

FORT LEE, N.J., Nov. 16, 2020 /PRNewswire/ — Creatd, Inc. (Nasdaq CM: CRTD) (“Creatd” or the “Company”), the parent company of Vocal, a proprietary technology platform for creators, today reported financial results for its three and nine-month periods ended September 30, 2020.  The Company accomplished several milestones and financial goals during the third quarter of 2020, including up-listing to the Nasdaq Capital Market, as it readies its operations to deliver on its accelerated growth trajectory.

Key Third Quarter 2020 Highlights:

• Reconstituted Creatd’s Board of Directors and appointed several new members:
• 
  Mark Standish
  , former co-CEO of RBC Capital Markets, was appointed Chairman of the Board in July as well as Chairman of the Audit Committee.
• 
  Mark Patterson
  , co-founder of a multi-billion private equity firm MatlinPatterson Global Advisors, joined the Board of Directors in July and was appointed Chairman of its Compensation Committee.
• 
  Laurie Weisberg
  , technology and data marketing executive (previously Chief Sales Officer of Intent, Chief Revenue Officer of Thrive Global and member of the executive leadership team of Datalogix through its $1.2 billion acquisition by Oracle) joined the Board of Directors in July.
• 
  LaBrena Jones Martin
  , a highly seasoned corporate and securities attorney (previously with SEC, E.F. Hutton, Shearson, Lehman Brothers, and RBC), joined the Board and was appointed Chair of its Nominating and Corporate Governance Committee, subsequent to the third quarter of 2020.
• Up-listed to the Nasdaq Capital Market on September 11, 2020, changed its name to Creatd, Inc., and effectuated a 3-for-1 reverse stock split.
• In connection with the Nasdaq up-listing, the Company completed an underwritten public offering resulting in gross proceeds of approximately $7.8 million.
• In September, the Company announced the appointment of Laurie Weisberg as Chief Operating Officer, in addition to her responsibilities as a member of the Board of Directors.
• Development updates and optimization the Vocal platform in anticipation of the continuing increases in visitor volume and platform activity; upgraded internal management systems.
• Surpassed third quarter revenues guidance by over 6%, generating approximately $425,000, an increase of 32% over the second quarter 2020 and a more than four-fold increase compared to third quarter 2019. Management anticipates that fourth quarter revenue growth will match, if not exceed the growth achieved in the third quarter.
• Reduced total liabilities from $15.5 million to $3.3 million during third quarter 2020 through conversion of notes and payables into equity as well as a $3.6 million cash payment towards multiple accrued payables and short-term debt.
• Vocal Key Metrics:

 

Commenting on the third quarter, Jeremy Frommer, Creatd’s founder and CEO, said, “Just under four years ago, in December 2016, we launched our proprietary platform Vocal, with less than 1,000 beta creators and six owned and operated digital communities. Our goal was to create a best-in-class technology platform that made it easy for creators of all types to share their stories and their experiences, get discovered, and be rewarded for their passions. Core to Vocal’s design are its storytelling tools. With its unparalleled editor, the creator has the ability to integrate already-published rich media such as videos, songs, and podcasts to reach niche communities and engage with their ideal audiences.”

Frommer continued, “Fast forward to today, we have been able to onboard over 800,000 freemium creators who have collectively published over 150 million words on Vocal, and attract nearly 10 million visitors monthly. These accomplishments were achieved with comparatively few development and marketing resources, compared to other privately funded creator platforms.  Now, with a significantly strengthened balance sheet, enhanced visibility from our listing on the Nasdaq Capital Market, and the collaboration of a powerful support network, we believe Creatd is prepared to scale revenues and that our Vocal platform is the driving force that will deliver profitability during fiscal year 2021.”

Creatd reported third quarter 2020 revenues of $425,000, more than four-fold increase compared to revenues of $91,000 for the same period in the previous year and a 32% increase from the $323,000 in revenues reported for the second quarter of 2020. Of note, second quarter revenues of 2020 were 10% greater than the first quarter of 2020. The significant year-over-year increase in revenues is predominantly due to steady growth of Vocal+ paid subscribers and the rising price points for Vocal for Brands’ campaigns. Vocal+ came out of beta in early 2020 and, with little budgeted for marketing, grew to over 4,500 paying subscribers by the end of the third quarter.  Now, with an increase in marketing as a result of the Company’s equity financing in mid-September, Vocal+ subscribers are increasing in excess of 100 new subscribers per day, and maintaining current levels, should surpass the Company’s goal of reaching 10,000 paid subscribers by year end. As the number of paid Vocal+ subscribers continue to increase, subscriber acquisition costs (SAC) are expected to continue to decline. Currently, acquisition costs total less than $170 per subscriber, compared to costs of $350 per subscriber at the end of second quarter 2020 and over $1,000 per subscriber only one year ago at the end of third quarter 2019.

Vocal for Brands, which generated approximately 39% of the Company’s third quarter revenues, is experiencing growth in both brand customer count as well as individual campaign price increases.  Vocal for Brands grew revenues nearly 100% since the second quarter, with an over 25% increase in average contract price. Managed Services, vis a vis the Seller’s Choice agency, accounted for roughly 43% of revenues generated during the quarter.  While Managed Services revenues were essentially flat quarter over quarter, this business line saw an increase in new clients towards the end of September, which is expected to impact revenue starting in the fourth quarter, historically the best quarter for this business line.

Operating expenses for the three months ended September 30, 2020 totaled approximately $7,449,000. This is over four times the operating expenses reported in third quarter 2019 and over two times that of the second quarter 2020. The increase in operating expenses primarily reflects non-recurring charges attributed to the Nasdaq up-listing and related financing activities, totaling approximately $1,200,000, as well as $3,600,000 related to 400,000 performance-based stock options granted to management, that was required to be expensed entirely during the quarter.  These performance options represent over three years of catch-up options for 13 members of the management team, and are expected to vest in April 2021. Going forward, the Company expects operating expenses to decrease materially, slightly offset by a measured increase in support staff focused on revenue growth.  Subsequent to quarter-end, Creatd increased its sales team from two to eight individuals, including several senior professionals with long-standing brand relationships. During the three-month period ended September 30, 2020, the Company incurred a loss from operations of $(7,024,000). This compares to a loss from operations of $(1,657,000) during the same period last year and a loss of $(3,535,000) during the second quarter 2020.    

The Company incurred other (non-operational) expenses of $6,552,000 in the third quarter 2020, compared to $277,000 in the third quarter 2019, and $607,000 in the second quarter 2020. The increase in third quarter other (non-operational) expenses was due to an increase in non-recurring, non-cash charges for accretion of debt discount and issuance costs totaling approximately $6,371,000, offset by other income of $438,000 related to a cash rebate the Company receives from its research and development subsidiary in Australia.

The Company reported a comprehensive loss of approximately $(13,570,000), or $(3.20) per share, for the three months ended September 30, 2020, compared to the previous year’s third quarter comprehensive loss of approximately $(1,934,000), or $(0.65) per share, and a comprehensive loss of $(4,161,000), or $(1.29) per share for the second quarter 2020.

For the nine months ended September 30, 2020, the Company reported revenues of approximately $1,040,000 compared to revenues totaling approximately $133,000 for the same period in 2019.  With the continued development of our Vocal technology platform, a vastly improved balance sheet, and a newly expanded seasoned sales team, management anticipates reporting accelerated quarterly revenue growth for the foreseeable future.

Operating expenses for the nine months ended September 30, 2020 totaled $13,426,000 as compared to $4,897,000 for the nine-month period ended September 30, 2019.  The increase in operating expenses predominantly reflects one-time expenses related to the Nasdaq up-listing, the underwritten public offering, and the debt conversion, as well as $1,400,000 of non-cash charges related to employee option exchange for stock during second quarter and $3,600,000 in three-year  catch-up performance-based stock options granted to 13 members of the management team during the third quarter. During the first nine months of 2020, our average monthly cash burn was approximately $559,000 per month, in line with previous years. Management expects this number to remain steady during the course of fiscal year 2021, barring any consideration of growth opportunities that could require additional expenditures in this period.

Interest expense during the first nine months of 2020 totaled $1,379,000 compared to $329,000 during the same period of 2019. Creatd reported a comprehensive loss for the nine months ended September 30, 2020 of $(20,726,000) or $(5.91) per share, which included a non-recurring, non-cash charge of $6,698,000 related to debt conversion to equity. This compares to a net loss of $(5,400,000) or $(2.05) per share for the same period in 2019.  Net cash used in operating activities during the first nine months of 2020 totaled $5,032,000 compared to $4,708,000 for the same period in 2019. Management expects future financing specifically to scale its customer acquisition and marketing campaigns.

Company Reduces Current Liabilities from $14.9 Million to $2.7 Million During Third Quarter 2020

On September 30, 2020, the Company reported total assets of $5.7 million, which includes its wholly owned image library and related transmedia IP carried at zero value. The sequential quarter over quarter increase of approximately $3 million in total assets primarily reflects an increase in cash from remaining proceeds of the Company’s equity offering during the quarter.

Following the underwritten public offering resulting in approximately $7.8 million in gross proceeds ($7.1 million net proceeds) on September 11, 2020, the Company significantly reduced its total liabilities from $15.5 million as of June 30, 2020 to $3.3 million as of September 30, 2020.  As Creatd has consistently carried little long-term debt since inception, the substantial portion of the decrease in liabilities was attributed to the conversion of notes, accrued interest, and payables totaling approximately $11,900,000 into the Company’s equity. Cash repayment of accrued payables and short-term debt totaling $3,600,000 accounted for the remainder of the current liability decrease.

As of September 30, 2020, the Company’s non-current portion of debt totaled $578,000, comprising $412,000 in the Government Payroll Protection Program (“PPP”) loan and $177,000 in operating leases payable. The company intends on requesting relief in accordance with SBA guidelines for the PPP loan. At September 30, 2020 the Company’s current liabilities totaled $2.7 million, which included approximately $174,000 in (mandatory) convertible notes, $105,000 in deferred revenue and unrecognized tax benefits, and $1.04 million in short term debt, of which approximately $660,000 is related to the acquisition of Seller’s Choice. The Company is currently in litigation regarding the note and continues to believe that the case lacks merit and has moved to dismiss.  The company has an appearance scheduled for November 19, 2020 and expects no major events to occur in regard to this litigation for the next 12 months. In the event this case is not summarily dismissed, the Company intends to vigorously challenge it.

As a result of the underwritten public offering and the debt conversion, the Company’s shares of common stock outstanding increased from 3.3 million as of June 30, 2020 to 8.7 million as of September 30, 2020.  The Company’s fully diluted share count increased by approximately 8.07 million shares during the third quarter to approximately 12.4 million shares (inclusive of all options, warrants and convertible debt). The majority of the increase to the fully diluted share count was also due to the underwritten public offering and debt conversions, and includes 1.7 million share purchase warrants issued in conjunction with the offering, 900,000 warrants issued in conjunction with debt conversion, and 400,000 performance-based stock options granted to management of the Company that vest on April 1, 2021 and, as previously mentioned, were part of a three-year program.  If all outstanding options ($23.67 average strike price) and warrants ($5.63 average strike price) were exercised for cash, the Company would receive approximately $17.5 million in additional capital.

As of December 31, 2019, the Company had federal and state tax loss carry forwards of approximately $21.0 million, which expire through the fiscal year ending December 31, 2033.

Third Quarter 2020 Conference Call and Webcast Details:

Date/Time: Tuesday, November 17, 2020 – 11:00 a.m. (Eastern Time)

Those interested in participating may access the webcast using the link below: https://event.on24.com/wcc/r/2830586/777DE409B84791B83212B43FD73A2CCB

It is recommended that participants join 15 minutes before the presentation is scheduled to begin. A recording of the webcast will be made available on the Company’s website following the session.

Contact:

  Press and Investor Relations
Rachel David
Head of Business Development and Communications
Creatd, Inc.
(201) 258-3770
[email protected]

About Creatd

Creatd, Inc. (Nasdaq CM: CRTD) empowers creators, brands, and entrepreneurs through technology and partnership. Its flagship technology platform is Vocal; Vocal provides creators of all shapes and sizes, from bloggers to podcasters, and more, with best-in-class storytelling tools, safe and curated communities, and the opportunity to monetize their content. With 34 owned and operated communities, Vocal enables creators to connect to their ideal audiences and to partner with the brands that want to reach those audiences. For more information, the content of which is not part of this press release:

Creatd: https://creatd.com;
Creatd IR: https://investors.creatd.com;
Vocal Platform: https://vocal.media;
Investor Relations Contact: [email protected]

Forward-Looking Statements

Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings.

∗∗∗
 Financial Statements Follow
∗∗∗

 

 

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SOURCE Creatd, Inc.

PALO ALTO, Calif., Nov. 16, 2020 /PRNewswire/ — Eiger BioPharmaceuticals, Inc. (Nasdaq: EIGR), focused on the development and commercialization of first-in-class therapies for serious rare and ultra-rare diseases, today announced a poster presentation of two case studies from the completed Phase 2 LIMT (Lambda Interferon MonoTherapy in HDV) trial at The Liver Meeting Digital Experience™ 2020. Peginterferon lambda (Lambda) is a first-in-class type III interferon in development for hepatitis delta virus (HDV) infection, the most severe form of human viral hepatitis. 

The LIMT study enrolled a total of 33 patients with chronic HDV, randomized to monotherapy Lambda 180 μg (N=14) or Lambda 120 μg (N=19), weekly subcutaneous injections for 48 weeks (EOT) with 24 weeks of follow-up (EOFU).  Recently, administration of Lambda for 48 weeks was shown to induce a durable virologic response (HDV RNA below limit of quantification at 24 weeks post-treatment) in 36% of patients with HDV and compensated liver disease.  Impact of Lambda therapy on liver histology was not assessed in the LIMT study.

Two patients who had liver biopsies prior to participation (pre-treatment) in the LIMT study, were re-biopsied 18 months after the last Lambda injection (post-treatment).  Liver biopsies were staged according to the ISHAK scoring system, ranging from F0 (no fibrosis) to F6 (cirrhosis) and evaluated.  

• Patient 1: a 64-year-old male, HDV RNA level was 3.7 log₁₀ at baseline, became HDV RNA undetectable at Lambda EOT with rebound to 2.6 log₁₀ at EOFU. ALT was 169 U/L, declined to 55 U/L at EOT and remained at 54 U/L at EOFU. A reduction in liver fibrosis score from F5 (incomplete cirrhosis) to F1 (mild portal fibrosis) was observed.
• Patient 2: a 37-year-old female, HDV RNA level was 4.9 log₁₀ at baseline, became HDV RNA undetectable at Lambda EOT with rebound to 3.6 log₁₀ at EOFU. ALT was 159 U/L, declined to 44 U/L at EOT and peaked to 162 U/L at EOS. A reduction in liver fibrosis score from F4 (marked bridging fibrosis) to F1 (mild portal fibrosis) was observed.

The most commonly reported adverse events in LIMT included mild to moderate flu-like symptoms and elevated transaminase levels which resolved post-treatment.  Patients previously treated with peginterferon alfa noted significantly less side effects on Lambda.

“This the first report demonstrating fibrosis regression following finite duration therapy with Lambda in patients with chronic HDV, the most severe form of hepatitis for which there is no approved treatment,” said Ohad Etzion, MD, LIMT Principal Investigator and Director of the Department of Gastroenterology and Liver Diseases at Soroka University Medical Center.  “These case studies suggest clinical benefit in the liver after 48 weeks of Lambda therapy.  We look forward to next steps for Lambda as it enters Phase 3 of clinical development.” 

About Peginterferon Lambda (Lambda)
Lambda is a well-characterized, late-stage, first-in-class, type III interferon (IFN) that stimulates immune responses that are critical for the development of host protection during viral infections.  Lambda targets type III IFN receptors which are distinct from the type I IFN receptors targeted by IFN alfa, resulting in activation of the same Jak-STAT signal transduction cascade.  Lambda type III receptors are highly expressed on hepatocytes with limited expression on hematopoietic and central nervous system cells, which may reduce off-target effects and improve tolerability of Lambda. 

Eiger licensed worldwide rights to Lambda from Bristol-Myers Squibb.  Eiger is developing Lambda as a monotherapy and in combination with Lonafarnib boosted with ritonavir.  Lambda is an investigational agent and not yet approved for any indication.  Eiger has received Orphan Designation by the U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA), and Fast Track and Breakthrough Therapy Designation by FDA for Lambda in HDV.

About LIMT (Lambda Monotherapy) Study
LIMT HDV enrolled a total of 33 patients with chronic HDV, randomized to monotherapy Lambda 180 μg (N=14) or Lambda 120 μg (N=19), weekly subcutaneous injections for 48 weeks with 24 weeks of follow-up.  At Week 48, LIMT study patients randomized to with Lambda 180 μg group experienced a mean decline in HDV-RNA of 2.3 log, with 7 of 14 (50%) experiencing ≥ 2 log decline and 5 of 14 (36%) patients achieving HDV-RNA below the limit of quantification (BLQ), comparable to historical peginterferon alfa.  At Week 72, a durable virologic response (DVR = HDV RNA below limit of quantitation) at 24 weeks post-treatment for Lambda 180 μg was achieved in 5 of 14 (36%).  LIMT HDV was an international study with sites in New Zealand, Israel and Pakistan.

About Hepatitis Delta Virus (HDV)
Hepatitis Delta is caused by infection with the hepatitis delta virus and leads to the most severe form of viral hepatitis.  Hepatitis delta occurs only as a co-infection in individuals harboring hepatitis B virus (HBV).  Hepatitis delta leads to more severe liver disease than HBV alone and is associated with accelerated liver fibrosis, liver cancer, and liver failure.  Approved nucleos(t)ide treatments for HBV only suppress HBV DNA, do not affect HBsAg and have no impact on HDV. 

Hepatitis delta is a disease with a significant impact on global health, which may affect up to 15-20 million people worldwide.  The prevalence of HDV varies among different parts of the world.  Globally, HDV infection is reported to be present in approximately 4.3% to 5.7% of chronic Hepatitis B carriers.

About Eiger

Eiger is a late-stage biopharmaceutical company focused on the development and commercialization of first-in-class, well-characterized drugs for serious rare and ultra-rare diseases for patients with high unmet medical needs. 

Eiger’s lead clinical programs target Hepatitis Delta Virus (HDV) infection, the most serious form of human viral hepatitis.  Eiger is developing two complementary treatments for HDV.  Lonafarnib is a first-in-class, oral prenylation inhibitor in a global Phase 3 trial.  Peginterferon lambda is a first-in-class, well-tolerated type III interferon entering Phase 3.

Eiger has filed an NDA and MAA for lonafarnib for the treatment of Hutchinson-Gilford Progeria Syndrome (HGPS or Progeria) and Progeroid Laminopathies.  FDA PDUFA date is November 20, 2020. 

For additional information about Eiger and its clinical programs, please visit www.eigerbio.com.

Note Regarding Forward-Looking Statements
This press release contains “forward-looking” statements that involve substantial risks and uncertainties.  All statements other than statements of historical facts, including statements regarding our future financial condition, timing for and outcomes of clinical results, business strategy and plans and objectives for future operations, are forward-looking statements.  These forward-looking statements include terminology such as “believe,” “will,” “may,” “estimate,” “continue,” “anticipate,” “contemplate,” “intend,” “target,” “project,” “should,” “plan,” “expect,” “predict,” “could,” “potentially” or the negative of these terms.  Forward-looking statements are our current statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things, our anticipating significant milestones in 2020 and 2021, the timing of our ongoing and planned clinical development, including the potential for approval of our lonafarnib product candidate in the U.S. and EU for Progeria and Progeroid Laminopathies; our progression and enrollment of our Phase 3 D-LIVR study in HDV; our ability to maintain supply of our clinical trial materials; our announcement of data from the trial of Lambda and lonafarnib boosted with ritonavir for HDV (LIFT); our plans to advance Lambda in HDV in the U.S. and EU;  our ability to transition into a commercial stage biopharmaceutical company; our ability to finance the continued advancement of our development pipeline products; and the potential for success of any of our product candidates.  These statements concern product candidates that have not yet been approved for marketing by the U.S. Food and Drug Administration (FDA).  No representation is made as to their safety or effectiveness for the purposes for which they are being investigated.

Various important factors could cause actual results or events to differ materially from the forward-looking statements that Eiger makes, including additional applicable risks and uncertainties described in the “Risk Factors” sections in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and Eiger’s subsequent filings with the SEC.  The forward-looking statements contained in this press release are based on information currently available to Eiger and speak only as of the date on which they are made.  Eiger does not undertake and specifically disclaims any obligation to update any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

SOURCE Eiger BioPharmaceuticals, Inc.
Investors: Ingrid Choong, PhD 
Email: [email protected] 
Phone: 1-650-619-6115

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SOURCE Eiger BioPharmaceuticals, Inc.

LOS ANGELES, Nov. 16, 2020 /PRNewswire/ — LiveXLive Media, Inc. (Nasdaq: LIVX) (“LiveXLive”), a global platform for livestream and on-demand audio, video and podcast content in music, comedy and pop culture, and owner of PodcastOne, Slacker Radio, and React Presents, announced today results for its second fiscal quarter ended September 30, 2020 and record revenue and contribution margin*.

In Q2 fiscal 2021, LiveXLive posted record revenue of $14.6 million, as well as record contribution margin* of $4.3 million. The increases were driven by growth in advertising revenue, strong sponsorship, and pay-per-view (“PPV”) ticket sales and improved margin expansion across LiveXLive’s live music events platform. On a U.S. GAAP basis, LiveXLive recorded a loss from operations of ($7.1) million and a net loss of ($10.2) million. On a non-GAAP basis, Adjusted Operating Loss (“AOL”)* narrowed to ($1.4) million from ($3.7) million in Q2 2020. 

LiveXLive CEO and Chairman, Robert Ellin, commented, “Delivering the most authentic voice in music in the past 25 years, LiveXLive is a leading talent-first platform focused on connecting artists with their superfans – building long term, sustainable, valuable franchises in audio music, podcasting, OTT, pay-per-view and live streaming. Delivering our 10th consecutive quarter of record revenues, our team has built one of the most powerful social live music networks in the world to Attend, Listen, Watch, Engage, and Transact. Based on completed and planned pay-per-view events, the substantial increase in sponsorship deals, and an expected improvement in ad revenue, we expect to report our 11^th consecutive quarter of record revenue for our current Q3 fiscal quarter.”

Recent and Q2 Fiscal 2021 Highlights

• Completed the acquisition of PodcastOne and announced the planned all-stock acquisition of e-commerce merchandise company, Custom Personalization Solutions (“CPS”), which recorded approximately $19.0 million in revenue in 2019. The CPS acquisition is expected to close by the end of calendar 2020 and be immediately accretive to Adjusted Operating Income*.
• LiveXLive’s 24-hour linear OTT streaming channel now reaches over 300 million people on Amazon Fire, Roku, Apple TV, SLING, both Samsung Smart TVs and Samsung TV Plus, Xumo, and ReachTV, Consumable TV streaming original content, artist interviews, concerts, festivals, ancillary event-related content and short-form video content from around the world.
• ***Ended September 30, 2020 with 936,000 paid subscribers, an increase of 161,000, or 21% year-over-year. Included in the total number as of September 30, 2020 are certain subscribers which are the subject of a contractual dispute. LiveXLive is currently not recognizing revenue related to these subscribers.
• PodcastOne’s franchise of exclusive shows has grown to more than 235 as more than 350 podcast episodes are produced weekly. Total social media reach across the exclusive talent roster of PodcastOne now exceeds 261 million.
• PodcastOne’s hit podcast, The LadyGang, reached a major milestone of 100 million downloads.
• PodcastOne launched new exclusive podcasts with Adam Corolla, Pitbull, Amanda Cerny, Jacqueline Fernandez, Michael Irvin, Jeff Cesario, and Chris Myers.
• Expanded sponsorship deals to now include Pepsi, McDonald’s, Hyundai, Corona, Porsche, Chipotle, State Farm, Kia, White Claw, Mike’s Hard Lemonade, and Mentos Pure Fresh Gum — and through LiveXLive’s multi-year livestream partnership with iHeartRadio – Progressive Insurance, Capital One, Ally Financial, Goya, Country Crock, St. Jude and OGX.
• Exclusively produced and delivered livestream PPV concerts by Grammy-winner Pitbull, the Modern Drummer Festival, Darius Rucker, and K-Pop sensations Monsta X and Wonho. In addition, sold and distributed the “Live From Out There” PPVs.
• Engagements within LiveXLive’s social media channels garnered a double-digit increase with total engagements up over 63% and average engagements per post up 122%.
• Completed $17.5 million common stock financing at $4.14 per share.
• Further improved the balance sheet by extending payment terms on $5.9 million of current payables owed to a music partner by twelve months and completed a $15.0 Million senior secured convertible notes financing agreement, convertible at $4.50 per share, with a major existing institutional stockholder in September 2020 and repaid senior secured debentures in August 2020.

Business Outlook

LiveXLive is raising its full-year fiscal 2021 guidance as follows:

• Revenue of $63.5 – $69.5 million
• Annualized Contribution Margin* of 30% – 35% of revenue
• Adjusted Operating Loss* of ($2.5) – ($5.0) million
• Capital expenditures, which principally include internally capitalized labor costs supporting the growth of our music platform, in the range of $3.0 – $5.0 million
• Expectation to livestream over 100 music festivals and events

** With respect to projected full year 2021 Adjusted Operating Loss*, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from Adjusted Operating Loss*.  We expect that the variability of these items could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

Second Quarter 2021 and 2020 Results Summary

(in $000
‘
s, except per share; unaudited)

Second Quarter 2021 Results Summary Discussion

During Q2 fiscal 2021, LiveXLive posted record revenue of $14.6 million versus $9.6 million in Q2 fiscal 2020. The increase was largely due to the growth in advertising, sponsorship, and PPV ticketing revenue offset by a decrease in subscription revenue as a result of certain subscribers subject to a contractual dispute. Paid subscribers as of September 30, 2020 increased 21% to 936,000, a net increase of 161,000 as compared to 775,000 subscribers at September 30, 2019. Included in the total number as of September 30, 2020 are certain subscribers which are the subject of a contractual dispute. LiveXLive is currently not recognizing revenue related to these subscribers.

LiveXLive livestreamed 29 live events during Q2 2021, as compared to 10 in Q2 2020, significantly reduced the cost per event, and made incremental investments to drive long-term growth. These growth activities drove a net loss of ($10.2) million, loss from operations of ($7.1) million and AOL^* of ($1.4) million in Q2 fiscal 2021.

Q2 fiscal 2021 Operating Loss of ($7.1) million was lower as compared to a ($9.9) million Operating Loss in Q2 fiscal 2020. The $2.8 million improvement was largely driven by (i) a $3.1 million improvement in contribution margin* in Q2 fiscal 2021, as compared to Q2 fiscal 2020, driven by higher sponsorship revenue and a decrease in production expenses, and the addition of PodcastOne during the quarter, and (ii) offset by increased operating expenses of $0.3 million, primarily as a result of the addition of Podcast One.

Q2 fiscal 2021 AOL* of ($1.4) million improved by 62% or $2.3 million when compared to Q2 fiscal 2020 AOL* of ($3.7) million, driven by improved contribution margin* and operating expenses during the period. Q2 fiscal 2021 AOL* was driven by Operations loss of ($0.1) million and Corporate loss of ($1.3) million. 

Capital expenditures for Q2 fiscal 2021 totaled approximately $0.8 million, which were largely driven by capitalized software costs associated with development of our integrated music player and PPV services in Q2 fiscal 2021.

At September 30, 2020, LiveXLive had approximately $21.0 million in cash and cash equivalents, which includes restricted cash of $0.2 million. 

^*
Refer to
“
About Non-GAAP Financial Measures
“
 
within this release for definitions of Adjusted Operating Income, Adjusted Operating Loss and Contribution Margin (Loss).

Conference Call and Webcast

LiveXLive will host a live conference call and audio webcast to provide a business update and discuss its second quarter fiscal 2021 results on Monday, November 16, 2020, beginning at 4:30 PM ET / 1:30 PM PT.

Conference Call & Webcast Information:

WHEN: Monday, November 16 at 4:30 PM ET / 1:30 PM PT
DOMESTIC DIAL-IN: 844-746-0736 
INTERNATIONAL DIAL-IN: 412-317-0796
The live call via webcast can be accessed on the Investor Relations section of LiveXLive’s website at http://ir.livexlive.com/upcoming-events.

The webcast will also be available on the Investor Relations section of LiveXLive’s website for a period of time following the completion of the call.

About LiveXLive Media, Inc.

Headquartered in Los Angeles, California, LiveXLive Media, Inc. (NASDAQ: LIVX) (the “Company”) (pronounced Live “by” Live) is a global platform for livestream and on-demand audio, video and podcast content in music, comedy, and pop culture. LiveXLive, which has streamed over 1500 artists since January 2020, has become a go-to partner for the world’s top artists and celebrity voices as well as music festivals and concerts, including Rock in Rio, EDC Las Vegas, and many others. In April 2020, LiveXLive produced its first 48-hour music festival called “Music Lives” with tremendous success as it earned over 50 million views and over 5 billion views for #musiclives on TikTok with over 100 performances. The Company’s library of global events, video-audio podcasts and original shows are also available on Amazon, Apple TV, Roku and Samsung TVs in addition to its own app, destination site and social channels. The Company’s wholly-owned subsidiary, PodcastOne, generates more than 2.1 billion downloads annually across more than 350 podcast episodes produces weekly. For more information, visit www.livexlive.com and follow us on Facebook, Instagram, TikTok, Twitter at @livexlive, and YouTube.

* About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), we present Contribution Margin (Loss), Adjusted Operating Income (“AOI”) and Adjusted Operating Loss (“AOL”), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

We use Contribution Margin (Loss) and AOL to evaluate the performance of our operating segment. We believe that information about these non-GAAP financial measures assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOL is not calculated or presented in accordance with GAAP. A limitation of the use of AOL as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOL should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOL as presented herein may not be comparable to similarly titled measures of other companies.

Contribution Margin (Loss) is defined as revenue less Cost of Sales.  AOI/AOL is defined as operating income (loss) before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, (e) depreciation and amortization (including goodwill impairment, if any), and (f) certain stock-based compensation expense.  Management does not consider these costs to be indicative of our core operating results.

With respect to projected full year 2021 AOL, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from AOL.  We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

For more information on this non-GAAP financial measure, please see the table entitled “Reconciliation of Non-GAAP Measure to GAAP Measure” included at the end of this release.

Forward-Looking Statements

We make forward-looking statements in this release within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Certain statements contained in this earnings release (or otherwise made by us or on our behalf from time to time in other reports, filings with the U.S. Securities and Exchange Commission (the “SEC”), news releases, conferences, internet postings or otherwise) that are not statements of historical fact constitute “forward-looking statements” notwithstanding that such statements are not specifically identified. These forward-looking statements relate to our expectations or forecasts for future events, including without limitation our earnings, revenues, expenses, Adjusted Operating Income, Adjusted Operating Loss, Contribution Margin (Loss), capital expenditures or other future financial or business performance or strategies, or the impact of legal or regulatory matters on our business, results of operations or financial condition. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “hope,” “seek,” “continue,” “target” or similar expressions. These forward-looking statements are not guarantees of future performance and are based on information available to us as of the date of this release and on our current expectations, forecasts and assumptions, and involve substantial risks and uncertainties. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to a variety of factors, risks and uncertainties, including: the Company’s reliance on one key customer for a substantial percentage of its revenue; the Company’s ability to consummate any proposed financing or acquisitions and the timing of the closing of such proposed transactions, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all or that the closing of any proposed transaction will not occur; the Company’s ability to continue as a going concern; the Company’s ability to attract, maintain and increase the number of its users and paid subscribers; the Company identifying, acquiring, securing and developing content; successfully implementing the Company’s growth strategy, including relating to its technology platforms and applications; ability to integrate the Company’s acquired businesses and the ability of the combined businesses to grow; the ability of the Company’s executive officers to manage expected growth profitably; the outcome(s) of any legal proceedings pending or that may be instituted against the Company, its subsidiaries or third parties to whom the Company may owe indemnification obligations; changes in laws or regulations that apply to the Company or its industry; the Company’s ability to recognize and timely implement future technologies in the music and livestreaming space; the Company’s ability to capitalize on investments in developing its service offerings, including LiveXLive app to deliver and develop upon current and future technologies; significant product development expenses associated with the Company’s technology initiatives; the Company’s ability to deliver end-to-end network performance sufficient to meet increasing customer demands; the Company’s ability to timely and economically obtain necessary approval(s), releases and or licenses on a timely basis for the use of its music content on its service platform; the Company’s ability to obtain and maintain international authorizations to operate its service over the proper foreign jurisdictions its customers utilize; the Company’s ability to expand its service offerings and deliver on its service roadmap; the Company’s ability to timely and cost-effectively produce, identify and or deliver compelling content that brands will advertise on and or customers will purchase and or subscribe to across the Company’s platform; the effects of the global Covid-19 pandemic; general economic and technological circumstances in the music and livestreaming digital markets; the Company’s ability to obtain and maintain licenses for content used on legacy music platforms; the loss of, or failure to realize benefits from, agreements with our music labels, publishers and partners; unfavorable economic conditions in the airline industry and economy as a whole; the Company’s ability to expand its domestic or international operations, including the Company’s ability to grow its business with current and potential future music labels, festivals, publishers, or partners; the effects of service interruptions or delays, technology failures, material defects or errors in our software, damage to the Company’s equipment or geopolitical restrictions; costs associated with defending pending or future intellectual property infringement actions and other litigation or claims; increases in the Company’s projected capital expenditures due to, among other things, unexpected costs incurred in connection with the roll out of the Company’s business plans and technology roadmap or the Company’s plans of expansion in North America and internationally; fluctuation in the Company’s operating results; the demand for live and music streaming services and market acceptance for our products and services; the Company’s ability to generate sufficient cash flow to make payments on its indebtedness; the Company’s incurrence of additional indebtedness in the future; the Company’s ability to repay the convertible notes at maturity or to repurchase the convertible notes upon a fundamental change or at specific repurchase dates; the effect of the conditional conversion feature of the convertible notes; the Company’s compliance with the covenants in its senior notes; risks and uncertainties applicable to the businesses of the Company’s subsidiaries and other risks, uncertainties and factors, including, but not limited to, those described in the Company’s 2020 Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the SEC on June 26, 2020, Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the SEC on November 16, 2020, and in the Company’s other filings with the SEC.  The forward-looking statements contained in this press release speak only as of the date the statements were made. The Company does not undertake any obligation to update these forward-looking statements, unless required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

LiveXLive IR Contact: 
310.529.2500
[email protected]

LiveXLive Press Contact
The Rose Group
[email protected] 
[email protected]

Financial Information

The tables below present financial results for the three and six months ended September 30, 2020 and 2019.

 

 

 

 

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SOURCE LiveXLive Media, Inc.

2021/Q2 revenue +340% YOY and +155% over 2021/Q1,
driven by the addition of Health and Wellness Innovations consumer products and growth of Cannabis related product revenue

Appoints Dr. Toni Rinow as Global Operating Officer

LAVAL, QC, Nov. 16, 2020 /CNW Telbec/ – Neptune Wellness Solutions Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose-driven lifestyle brands, today announced its financial and operating results for the three-month and six-month periods that ended September 30, 2020.

All amounts are in thousands of Canadian dollars except if specified otherwise.

Second Quarter 2021 Financial Highlights

• Total revenues for the three-month period ended September 30, 2020 amounted to $28,686 representing a sequential increase of $17,439 or 155%, over the restated revenues of the first quarter ended June 30, 2020 of $11,247, and an increase of $22,174 or 340%, compared to $6,512 for the three-month period ended September 30, 2019.
• Gross profits for the three-month period ended September 30, 2020 decreased to a loss of $4,552 compared to profit of $3,256 in the first quarter ended June 30, 2020 and profit of $9 for the three-month period ended September 30, 2019. Gross margin declined to a loss of 15.9% as a result of strategic investments to position the Company for further distribution growth.
• Investments of approximately $1.9 million in capex related to the Sherbrooke facility, to adapt it from low margin B2B offering to high margins B2C offerings, such as our Mood Ring™ offerings.
• Adjusted EBITDA¹ declined by $8,339 for the second quarter of fiscal year 2021 to a loss of $12,920 compared to the second quarter of fiscal year 2020. The decline in Adjusted EBITDA¹ is mainly attributable to the change in net loss, the decrease in acquisition costs, in stock-based compensation , in excluded net finance costs and in income tax recovery, partly offset by the increase in non-employees compensation related to warrants ($2.5 million), in depreciation and amortization and by the costs related to a one-time cybersecurity incident, which was resolved by Neptune with no expected material effect on our operations going forward.

• Net loss for the three-month period ended September 30, 2020 increased at $21,840 compared to a net loss of $20,775 for the three-month period ended September 30, 2019, up by $1,065 or 5%. Included in the net loss for the quarter ended
  September 30, 2020, there was $5.5 million in non-cash transactions that were adjusted out of EBITDA, and a little less than $2.0 million for the cybersecurity incident previously mentioned.
• The Company restated its previously filed condensed consolidated interim financial statements as at and for the three-month period ended June 30, 2020 with respect to recognition of revenue relating to one transaction that was initially recognized at the gross amount and was restated to present the net amount of the transaction. There is no impact on the net loss in the condensed consolidated interim statement of loss and comprehensive loss resulting form this restatement. The restatement of the June 30, 2020 interim statements includes management’s conclusion that Company’s internal control over financial reporting (“ICFR”) was not effective as at June 30, 2020, due to the existence of a material weakness in its design and the Company’s plans to remediate such weakness.

Recent Corporate Highlights

• 
  September 17, 2020: Neptune announced “Wonders of Africa” essential oil kit is made with sustainable ingredients and eco-friendly packaging. This marks the first of its product lines made in collaboration with legendary animal behavior expert and conservationist, Dr. Jane Goodall, under its Forest Remedies™ brand.
• 
  September 22, 2020: Neptune announced an import and stocking distribution partnership with one of the world’s leading consumer goods companies, making and selling around 400 brands in more than 190 countries, for professional beauty, personal care and hygiene product lines generating potential sales revenue from as much as USD $65 million up to USD $137 million over the next 18 months based on the consumer product company’s and Neptune’s projections.
• 
  September 24, 2020: Neptune announced it had entered into an agreement with the British Columbia Liquor Distribution Branch (“BCLDB”), the wholesaler and public retailer of nonmedical cannabis throughout the province, for the sale and distribution of Neptune’s new proprietary M Mood Ring™ product line.
• 
  October 23, 2020: Neptune announced it had closed a private placement with certain US healthcare focused institutional investors for gross proceeds of approximately US$35 million.
• 
  October 27, 2020: Neptune announced a supply agreement with the Ontario Cannabis Store (OCS), the wholesaler and sole online retailer for recreational cannabis, for the sale and distribution of Neptune’s new proprietary recreational product line, Mood Ring™.  Together with the BCLDB announcement, this represents at least 515 retailers.
• 
  October 30, 2020: Neptune announced that its Innovations business unit has entered into a letter of credit facility with Perceptive Advisors to provide the Company with up to US$45 million to support the fulfillment of large purchase orders placed by a customer.
• 
  November 16, 2020: Neptune today announced it received over US$100 million in purchase orders for its Biodroga and Innovations divisions.  The purchase orders come from six different Neptune clients and the booked sales of about $100 million are scheduled to ship in the next 2 quarters.
• 
  November 16, 2020: Neptune today announced the appointment of Dr. Toni Rinow as Global Operating Officer in addition to her current role as Chief Financial Officer, effective immediately.  Dr. Rinow has been instrumental in increasing efficiencies and future profitability across Neptune’s business units, reducing its headcount by 25% to focus on forward-thinking initiatives and to accelerate growth with less focus on long-term, asset heavy investments.  David Myers, who was previously Chief Operating Officer, recently left the Company for personal reasons.

Management Commentary

Michael Cammarata, Chief Executive Officer of Neptune, stated: “I am pleased with our strong top line growth and the successful strategic investments we made during the second quarter of fiscal 2021.   We are transforming Neptune into a leading consumer-packaged goods (“CPG”) company by making the appropriate investments into our distribution reach in both business-to-business (“B2B”) and business-to-consumer (“B2C”) channels.

We continue to focus on innovation, expanding our broad portfolio of natural, plant-based, and sustainable brands in key health and wellness markets, including hemp, nutraceuticals, personal care, and home care. We are on track for our CPG products to exceed 70% of our revenues in the third quarter of fiscal 2021 and expect this segment of our business to continue to generate very strong growth. The investments and operating efficiencies we implemented in the first and second quarters of fiscal 2021 and will continue to make in the third quarter of 2021, have us well positioned to begin realizing the tremendous revenue from our purchase orders to come.  These orders combined with the growth of our other areas will drive profitable accretive growth with limited incremental capital investment, ultimately driving higher margins and higher returns.”

Dr. Toni Rinow, Chief Financial Officer and Global Operating Officer of Neptune, added: “During the second quarter we saw continued growth to our top line while we made additional strategic investments in the future of the Company and in our distribution channels. These investments were an important steppingstone into the next phase of growth. Moving into the back half of fiscal 2021 we are sufficiently capitalized and well positioned to deliver on  growth in purchase orders in the fourth fiscal quarter of 2021 and as we move into the first half of fiscal 2022. We remain focused on innovation that will continue to help customers, from the time they wake up to when they go to sleep.”

Operational Update

During the quarter, Neptune executed on a dual go-to market B2B and B2C strategy focused on dramatically expanding its global distribution reach. Neptune is greatly accelerating its global distribution network and expects CPG distribution to exceed 70% of the Company’s revenues in the third quarter of fiscal 2021; this compares to zero for the same period in the previous year.

Additionally, Neptune continues to build a broad portfolio of natural, plant-based, and sustainable brands and CPG products in key health and wellness markets, including hemp, nutraceuticals, personal care, and home care.

Conference Call Details

There will also be a simultaneous, live webcast available on the Investors section of Neptune’s website under Investor Events and Presentations at www.neptunecorp.com or directly at https://produceredition.webcasts.com/starthere.jsp?ei=1388592&tp_key=4b8fec85a6. The webcast will be archived for approximately 30 days.

About Neptune Wellness Solutions Inc.

Neptune Wellness Solutions is a unique global health and wellness company that is changing consumer habits through the creation and distribution of environmentally friendly, ethical and innovative consumer product goods. Neptune’s simultaneous focus on B2C and B2B customer-oriented brand development provides the Company with international reach and scale from its owned and operated facilities that extract and create product formulation, all the way to the sales floor at top global retailers.

Underpinned by a disruptive spirit, Neptune’s diversified, and fully integrated business model focuses on natural, plant-based, sustainable and purpose-driven lifestyle brands and the use of cannabinoids in household products to make them safer, healthier and more effective. Its portfolio includes emerging brands such as Forest Remedies™, Ocean Remedies™, Neptune Wellness™, Mood Ring™, and OCEANO3™, which are poised for rapid growth and expansion.

Backed with a cost-efficient manufacturing and supply chain infrastructure that can be scaled up and down or into adjacent product categories to identify new innovation opportunities, Neptune quickly adapts to consumer preferences and demand, and is bringing its products as well as other Fortune 100 brands to market through strategic distribution partnerships, mass retail partners and e-commerce channels. Neptune is committed to its core mission of redefining health and wellness and helping humanity thrive by providing sustainable consumer focused solutions. For additional information, please visit: www.neptunecorp.com

Caution Regarding Non-IFRS Financial Measures

The Corporation uses one adjusted financial measure, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) to assess its operating performance. This non-IFRS financial measure is comprised of adjustments that are derived from the Corporation’s financial statements and are presented in a consistent manner. The Corporation uses this measure for the purposes of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. This measure also helps the Corporation to plan and forecast for future periods as well as to make operational and strategic decisions. The Corporation believes that providing this information to investors, in addition to IFRS measures, allows them to see the Corporation’s results through the eyes of management, and to better understand its historical and future financial performance.

Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Corporation uses Adjusted EBITDA to measure its performance from one period to the next without the variation caused by certain adjustments that could potentially distort the analysis of trends in our operating performance, and because the Corporation believes it provides meaningful information on the Corporation’s financial condition and operating results. Neptune’s method for calculating Adjusted EBITDA may differ from that used by other corporations.

Neptune obtains its Adjusted EBITDA measurement by adding to net income (loss), net finance costs and depreciation and amortization and by subtracting income tax recovery. Other items such as stock-based compensation, non-employees compensation related to warrants, litigation provisions, acquisition costs, signing bonuses, severances and related costs of the Corporation are also added back as they may vary significantly from one period to another. Adjusting for these items does not imply they are non-recurring. 

Forward Looking Statements

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the U.S. securities laws and Canadian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes”, “belief”, “expects”, “intends”, “projects”, “anticipates”, “will”, “should” or “plans” to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

The forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the “Cautionary Note Regarding Forward-Looking Information” section contained in Neptune’s latest Annual Information Form (the “AIF”), which also forms part of Neptune’s latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on the investor section of Neptune’s website at www.neptunecorp.com. All forward-looking statements in this press release are made as of the date of this press release. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained herein include, without limitation, statements about the fulfillment of purchase orders, the availability of products from Neptune’s supplier, and the anticipated use of proceeds of the financing and other risks and uncertainties that are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under “Risk Factors”.

Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

NEPTUNE WELLNESS SOLUTIONS INC.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Unaudited)
For the three-month and six-month periods ended September 30, 2020 and 2019

See accompanying notes to unaudited condensed consolidated interim financial statements.

NEPTUNE WELLNESS SOLUTIONS INC.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited)
As at September 30, 2020 and March 31, 2020

See accompanying notes to unaudited condensed consolidated interim financial statements.

ADJUSTED EBIDTA

Although the concept of Adjusted EBIDTA is not a financial or accounting measure defined under IFRS and it may not be comparable to other issuers, it is widely used by companies.  Neptune obtains its Adjusted EBITDA measurement by adding to net income (loss), net finance costs and depreciation and amortization, and by subtracting income tax recovery. Other items such as stock-based compensation, non-employees compensation related to warrants, litigation provisions, acquisition costs, signing bonuses, severances and related costs of the Corporation are also added back as they may vary significantly from one period to another. Adjusting for these items does not imply they are non-recurring.

Adjusted EBITDA¹ reconciliation, in thousands of dollars

Please note that non-employees compensation related to warrants and signing bonuses are new additions to the Company’s calculation methodology for the quarter ended September 30, 2020.  Signing bonuses did not occur previously, so no restatement of the previous periods was needed, but there were non-employees compensation expenses related to warrants in previous quarters; consequently, the amount for the six-month period ended September 30, 2020 reflects the sum of those expenses for the first ($875) and second ($2,542) quarters of FY2021, and no corrections were needed for the three-month and six-month periods ended September 30, 2019.

 

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SOURCE Neptune Wellness Solutions Inc.