Neptune Wellness Solutions Acquires Sugarleaf to Establish U.S. Cannabis Extract Supply Chain

On July 29, 2019, VCBeat (WeChat ID: vcbeat) learned that cannabis purification company Neptune Wellness Solutions had acquired North Carolina-based cannabis supplier Sugarleaf.

Following this acquisition, Neptune will establish a U.S. cannabis extract supply chain and secure 24,000 square feet of facility space in key areas of the Southeastern United States. The company projects revenue exceeding $150 million over the next three years.

Headquartered in Laval, Quebec, Canada, Neptune is a health and wellness company with over 50 years of experience in the extraction, purification, and formulation of science-based products. Currently, the company primarily develops nutritional product solutions and researches specialized ingredients such as MaxSimil®, a patented ingredient that enhances the absorption of lipid-based nutritional supplements, as well as various marine and seed oils. Leveraging its scientific technology and innovative expertise, Neptune has become a licensed producer of cannabis extracts in Canada and is now able to operate legally in the U.S. market.

Neptune CEO Michael Cammarata stated, “We will continue to expand our market reach into the United States, which offers a broader customer base, and establish our position in the global cannabis market. This acquisition represents a true milestone for Neptune, and we look forward to partnering with Sugarleaf to enhance our ability to provide the highest-quality health solutions to our existing and prospective customers.”

Neptune President and CEO Jim Hamilton stated, “With Neptune’s growing operations in Canada, the evolving global legal framework, and the exponential growth of the cannabis industry worldwide, now is the time to establish a leading supply chain in the U.S. market. Sugarleaf possesses efficient capabilities for producing cannabis extracts and strong supplier relationships. These strengths, combined with our expertise in customer relations and scientific formulation, will create greater value for U.S. brands seeking to offer differentiated products. Neptune aims to become a global leader in the extraction, purification, and formulation of natural health products. We warmly welcome the Sugarleaf team to Neptune.”

Sugarleaf, based in North Carolina, USA, possesses efficient cannabis extraction capabilities, utilizing non-GMO ethanol at extremely low temperatures and advanced laboratory technologies to produce cannabinoid-rich extracts. Sugarleaf’s cannabis extraction facility has a maximum processing capacity of 1,500 tons. The company has also established strong relationships with local farmers and consumer goods companies to source high-purity cannabis extracts, thereby enriching its product portfolio.

Sugarleaf CEO Peter Galloway stated, “We are delighted to partner with Neptune. The Sugarleaf team looks forward to combining our strengths with those of the Neptune team to accelerate our growth.”

(Compiled by Hu Yifan)