Neptune Wellness Solutions Inc. announces unpaid leave as part of restructuring

Neptune Wellness Solutions Inc., a company based in Laval, Quebec, recently announced that it has placed some of its employees on mandatory unpaid leave since February 23, 2024, including its President and CEO Michael Cammarata, as well as John Wirt, executive vice president and general counsel. This decision is part of a rapid cost reduction effort in response to previously communicated financial concerns.

Michael Cammarata also resigned from his position on the company's board of directors and all other similar positions within Neptune subsidiaries, while contesting his leave of absence under the terms of his employment contract. The company is developing a succession plan to temporarily replace him and has formed a special restructuring committee for this transition.

The unpaid leave, initially set for a period of thirty days, could be extended or terminated depending on the evolution of Neptune's financial situation and the strategic alternatives available. The company does not offer any guarantees regarding the return of employees after this period.

Neptune, which is in financial difficulty, is considering various options, including debt financing and asset sales, to continue its operations. These conditions raise concerns about the continuity of the business.