Neptune Wellness Nutraceutical Brand, Biodroga, Announces Accounts Receivable Factoring Facility Of Up To $8M
Portfolio Pulse from Benzinga Newsdesk
Neptune Wellness Solutions Inc. (NASDAQ:NEPT) has announced that its subsidiary, Biodroga Nutraceuticals Inc., has secured an accounts receivable factoring facility with Alterna Capital Solutions, LLC. The facility starts at $3 million and can be increased to $8 million. It carries a minimum interest rate of 9.5% per annum and is secured by Biodroga's accounts receivable and inventory. The agreement is for 12 months starting November 8, 2023, with automatic renewal, and Neptune has provided a commercial guaranty.
November 29, 2023 | 1:36 pm
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Neptune Wellness Solutions Inc. has obtained a financial facility for its subsidiary, which may improve its liquidity and support business operations. The facility's terms and the provision of a commercial guaranty by Neptune indicate a commitment to Biodroga's growth.
The new credit facility is likely to have a positive short-term impact on NEPT's stock price as it provides additional liquidity and financial flexibility to Biodroga, which could lead to business expansion and increased revenues. The commitment of Neptune to guarantee the facility also shows strong support for its subsidiary's operations, which may be viewed positively by investors.
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