Neptune Wellness Solutions Inc. (NAS:NEPT) said Wednesday it has reached a mutual agreement with Canopy Growth Corp.s (NYS:CGC) (TSE:CA:WEED) to amend and restate their cannabis processing agreement. The parties have agreed to an amended schedule of processing volumes committed to Neptune by Canopy and to the removal of certain preferential rights granted Canopy related to Neptune's capacity and pricing. "Effective June 30, 2020, volume and pricing will be negotiated between the two parties based on market conditions," Neptune said in a statement. The 3-year term of the deal remains intact. "As a result of the revised terms, Neptune expects to reduce its client concentration risk and diversify its customer base," said the statement. Neptune shares were up 2.2% premarket. Canopy was up 6.4%, but remains down 43% in 2019, while the ETFMG Alternative Harvest ETF (PSE:MJ) has fallen 33% and the S&P 500 (S&P:SPX) has gained 24.5%.
Nov. 20, 2019, 8:54 a.m. EST