LAVAL, QC, March 25, 2019 /PRNewswire/ - Neptune Wellness
Solutions Inc. ("Neptune" or the "Corporation") (NASDAQ: NEPT) (TSX: NEPT), announced that it
has received a judgment from the Superior Court of Québec (the "Court") regarding certain previously disclosed claims made by the
Corporation's former chief executive officer (the "Former CEO") against the Corporation in respect of certain royalty payments
alleged to be owed and owing to the Former CEO pursuant to the terms of an agreement entered into on February 23, 2001 between Neptune and a corporation controlled by the Former CEO (the "Agreement"). The
Corporation had also filed a counterclaim against the Former CEO disputing the validity and interpretation of certain clauses
contained in the Agreement and claiming the repayment of certain amounts previously paid to the Former CEO pursuant to the terms
of the Agreement. Under the terms of the Agreement, it was alleged by the Former CEO that annual royalties be payable to the
Former CEO, with no limit to its duration, of 1% of the sales and other revenues made by Neptune; the interpretation of which was
challenged by the Corporation.
Pursuant to the judgment rendered, which Neptune intends to appeal, the Court ruled in favour of the Former CEO and rejected
the counterclaim filed by the Corporation. As a result, the Court awarded the Former CEO payments determined by the Court to be
owed under the Agreement of 1% of all sales and revenues of the Corporation incurred since March 1,
2014, which payments remain to be finally determined taking into account interest, judicial cost and other expenses. The
Court also declared that, pursuant to the terms of the Agreement, the royalty payments of 1% of the sales and other revenue made
by the Corporation on a consolidated basis are to be payable by the Corporation to the Former CEO biannually, but only to the
extent that the disbursement of the royalty would not cause the Corporation to have a negative earnings before interest, taxes
and amortization (in which case, the payments would be deferred to the following fiscal period).
Since the claims were first initiated by the Former CEO, Neptune has vigorously defended against such claims and appointed an
external law firm to assist and represent the Corporation in asserting its rights. The Corporation has 30 days from the date of
the judgment to appeal against the decision and intends to file such appeal prior to the expiry of such limitation period, after
carefully reviewing the decision in conjunction with its legal advisors. The Corporation will continue to take all measures
required to assert its rights as it disagrees with the conclusions rendered by the Court and the interpretation of the relevant
provisions of the Agreement. In the event an appeal is filed in a timely manner, execution of the aforementioned judgment is
expected to be suspended during the appeal proceedings.
About Neptune Wellness Solutions Inc.
Neptune Wellness Solutions specializes in the extraction, purification and formulation of health and wellness products.
Bringing decades of experience in the natural products sector to the legal cannabis industry, Neptune is licensed by Health
Canada to process cannabis for the production of cannabis extracts and oils at its 50,000 square foot facility located in
Sherbrooke, Quebec. Leveraging its scientific and technological expertise, Neptune acts as a
service provider to license holders as part of a multi-phase growth strategy focused on the development of value-added and
differentiated products for the Canadian and global cannabis markets. Neptune's activities also include the formulation,
development and commercialization of turnkey nutrition solutions and patented ingredients such as MaxSimil®, and of a variety of
marine and seed oils. Its head office is located in Laval, Quebec.
Forward-Looking Information
This press release may contain forward-looking information that is based on certain assumptions and involves known and unknown
risks and uncertainties and other factors that could cause actual events to differ materially from current assumptions and
expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known
and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially
different from those implied by such statements. A more complete discussion of the risks and uncertainties facing the Corporation
appears in the Corporation's Annual Information Form and continuous disclosure filings, which are available on SEDAR's website at
www.sedar.com. 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
Corporation disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking
statements as a result of new information or future events, or for any other reason.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Neptune Wellness Solutions Inc.