Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) reported second-quarter revenue of CA$6.51 million ($4.9 million) on Monday and announced a partnership with International Flavors & Fragrances Inc. (NYSE: IFF).
The second-quarter revenue of CA$6.51 million was lower than the CA$7.07 million in revenue posted in the same period of 2018.
The company also posted a quarterly net loss of CA$20.78 million versus a net loss of CA$3.05 million in the corresponding quarter of the prior year.
Its adjusted EBITDA was a loss of CA$4.58 million, which is by CA$3.35 million lower than in the second quarter of 2018.
Neptune also noted recent milestones such as the acquisition of SugarLeaf assets, which included the CBD consumer brand Forest Remedies; and its entrance into a strategic partnership with American Media LLC.
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On Monday, Neptune announced a collaboration agreement with International Flavors & Fragrances Inc. to co-develop hemp-derived CBD products targeting mass retail and health and wellness markets. In addition, Neptune will issue warrants to IFF.
As part of the deal, the company App Connect Services will provide branding strategies and promotional activities.
As part of the agreement, IIF is to offer its intellectual property to supply essential oils, while Neptune said it will leverage its extraction processes and formulation IP to offer broad-spectrum extracts.
The company anticipates the first products will be launched under Neptune’s Forest Remedies brand in the first half of 2020, and will include various topical products in the aromatherapy category.
"The agreement represents a significant event in the development of our global cannabis business, expanding our business model from primarily B2B to include a robust B2C business platform," Neptune CEO Michael Cammarata said in a statement.
"This partnership will accelerate Neptune's vision and growth strategy to be the leading producer of hemp extracts ingredients and finished products for the global health and wellness and Consumer Packaged Goods industries."
Neptune shares were down 6.92% at $3.30 at the time of publication Monday, while International Flavors & Fragrances shares were down 1.11% at $131.36.