LAVAL, QC, Oct. 17, 2019 /CNW Telbec/ - PRESS RELEASE - Neptune Wellness Solutions Inc. has announced that it has entered into an agreement to provide extraction services to a large U.S.-based farming services operation. Under the contract terms, Neptune will receive hemp biomass to be processed and transformed into crude oil extracts. The two-year agreement could reach a total value in excess of US$20 million. The first shipment of biomass is expected to arrive at Neptune's North Carolina facility in the coming weeks.
"This large contract will support our capacity expansion at our North Carolina facility and better position us to serve the growing United States market. Our expansion in North Carolina is on time and on budget with extraction capacity expected to reach an annual run-rate of 1,500,000 kg of biomass by December 2019. Demand for extraction and formulation services in the U.S. is currently strong with the ongoing harvest season and our tolling and formulation pipeline to deliver high quality full and broad spectrum extracts remains robust. This announcement represents a further step towards our customer and geographic diversification strategy," said Michael Cammarata, Neptune's CEO.
Neptune also recently appointed Brett DuBose as Vice-President of Sales for the U.S. Region. DuBose has more than 20 years of sales experience, most recently with Lonza Consumer Health and Nutrition where he was Associate Director Sales, for the Eastern U.S and Canada. He has also worked for 14 years at Pfizer in the Capsugel division, his last role being a Sales Manager Generic & Dietary Supplement.
"With his extensive industry contacts and experience, Brett will play a key role in helping Neptune accelerate its market penetration in the U.S.," said Cammarata.
Once Neptune's near-term capacity expansion plans are complete and the Canadian expansion approved by Health Canada, the Company is expected to have a total extraction capacity of 3,000,000 kg of biomass annually, spread equally between Canada and the U.S.