After-market trading hours on Thursday, shares of Neptune Wellness Solutions Inc. (NASDAQ: NEPT) climbed 2.96% to $1.39. The Neptune Wellness stock closed at $1.35 in the regular session, losing -4.93%. Over the week, NEPT stock gained 5.47%, while it has added 0.75% over the month. As a result of signing a definitive agreement with a cannabis brand, NEPT stock witnessed gains.
What was the agreement for?
Neptune Wellness is comprised of diversified businesses in the health and wellness industry. The goal of Neptune is to redefine health and wellness by developing a broad portfolio of consumer products of the highest quality, at an affordable price, to meet long-term secular trends and market demand for natural, plant-based, sustainable, purpose-driven lifestyle brands.
Identifying new innovation opportunities, quickly adapting to consumer preferences and demands, and bringing new products to market through mass retail partners and e-commerce channels, NEPT uses a highly flexible, cost-efficient manufacturing and supply chain infrastructure that can scale up and down or into adjacent product categories.
A supply agreement has been entered into between Neptune and Alberta Gaming, Liquor and Cannabis (AGLC) for the sale and distribution of Neptune’s proprietary recreational cannabis brand, Mood Ring. AGLC is Alberta’s sole online retailer for recreational cannabis and is a wholesaler.
With this agreement, NEPT has secured its fourth supply agreement with a provincial cannabis wholesaler. It will enable NEPT to sell recreational cannabis products to more than 1,600 retailers spread across British Columbia, Alberta, Ontario, and Quebec through its Mood Ring and PanHash brands.
The AGLC agreement enables Neptune Wellness (NEPT) to rapidly expand in the recreational cannabis market due to the fact that these four provinces accounted for over 80% of Canadian cannabis retail sales in 2020.