Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) agreed to acquire a 50.1% interest in baby food and snack company Sprout Foods for $6 million in cash and $12 million via issuance of 6.74 million Neptune shares.
The company's shares spiked 92% premarket ahead of the announcement.
Sprout is a portfolio investment of Morgan Stanley Expansion Capital (MSEC), which will subsequently become a shareholder in Neptune.
Under the deal, Sprout will become a subsidiary of Neptune.
In addition, Neptune is vouching for a $10 million note …