Neptune Wellness Solutions Inc (NEPT) said on Wednesday that it had initiated processing biomass by using a new cold ethanol technology at its facility in Sherbrooke, Quebec. This new technology is expected to be up to five times faster and to consume up to two times less energy compared to Neptune’s current CO2 technology.
Shares of Neptune Wellness Solutions Inc closed higher for a second consecutive trading session on NASDAQ on Wednesday. The stock went up 0.58% ($0.02) to $3.49, after touching an intraday high at $3.52, or a price level not seen since October 10th ($3.69).
Shares of Neptune Wellness Solutions Inc have risen 37.40% so far this year, following a 7.63% gain in 2018.
In Toronto, the marijuana stock edged down 0.22% (CAD 0.01) on Wednesday to close at CAD 4.59.
The first shipments of cannabis extracts, produced by using ethanol technology, are expected in the near future, as soon as the company completes the final release testing on the first batches that have been extracted.
Combined with its CO2 extraction line, Neptune’s biomass processing capacity is now projected to increase to an annual run rate of 200 000 kg by the end of November.
“The Phase II cold ethanol production was completed on budget and is another important milestone in our capacity expansion strategy. We are currently working on Phase IIIa which will bring total annual extraction capacity to 1,500,000 kg,” Michael Cammarata, Neptune’s Chief Executive Officer, said in a statement.
“This capacity expansion is necessary to support the execution of Neptune’s growth strategy to become a global leader in cannabis extraction and purification while meeting the growing demand from consumers for natural products. With our diverse base of 100+ customers across North America in multiple verticals, including legal cannabis and hemp, nutraceutical, and consumer packaged goods, Neptune is well positioned to execute on its growth plans,” Cammarata added.
Analyst stock price forecast and recommendation
According to CNN Money, the 2 analysts, offering 12-month forecasts regarding Neptune Wellness Solutions Inc’s stock price, have a median target of $7.17, with a high estimate of $7.57 and a low estimate of $6.77. The median estimate represents a 105.44% upside compared to the closing price of $3.49 on October 16th.
The same media also reported that all 2 surveyed investment analysts had rated Neptune Wellness Solutions Inc’s stock as “Buy”.
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