Neptune Wellness entered into a binding term sheet with NH Expansion , or Morgan Stanley, for the company’s organic baby and toddler food brand, Sprout Organics, providing Neptune with an option to exchange its existing Sprout debt for Sprout equity, on or prior to November 13. The exchange would substantially reduce Sprout’s debt and would be subject to the execution of definitive agreements and receipt of required consents. The term sheet further provides for amendments to remaining Sprout promissory notes in the event that the exchange is consummated, including that such promissory notes would have their maturity date extended to June 30, 2025 and the termination of the guarantee currently provided by the company. The term sheet further specifies certain terms governing a transaction that, if consummated, would result in Sprout becoming an independent trading entity.
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