Neptune Wellness places certain employees on mandatory unpaid leave of absence

Neptune Wellness Solutions has placed certain employees on a mandatory unpaid leave of absence effective February 23, 2024 in connection with a rapid cost cutting and restructuring effort, as a result of the Company’s previously disclosed ongoing financial concerns. Among the employees placed on mandatory leave are Michael Cammarata, President and CEO, and John Wirt, Executive Vice President and Chief Legal Officer, both of whom are under employment contracts. Mr. Cammarata also concurrently resigned from the Company’s board of directors and all other board positions at the Company’s subsidiaries and affiliates effective immediately. Mr. Cammarata is challenging his unpaid leave under the terms of his employment agreement, and there is a risk of dispute under existing employment agreements as a result of the announced temporary leaves. The Company is currently working through a succession plan to determine who will assume the role of Interim CEO in Mr. Cammarata’s absence. In the interim, the Company has appointed a special restructuring committee comprised of certain members of the Board to evaluate candidates for the role of Interim CEO and to lead the Company through this transitionary period. The last day of work for employees placed on mandatory leave was February 23, 2024. The initial period of mandatory leave is for thirty days, though any decisions to recall staff to active service, extend the period of leave, or relieve staff of responsibilities have not yet been made. The Company will continuously evaluate its financial condition as well as all available strategic alternatives in connection with its ongoing restructuring effort to determine when employees will be recalled to active service, though there can be no assurance at this stage that any of the employees will return to the Company at the end of the temporary period of mandatory leave, if at all.