Neptune Wellness : Accelaration/Increase of Financial Obligation - Form 8-K

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On March 22, 2024, Sprout Foods, Inc. ("Sprout"), a subsidiary of Neptune Wellness Solutions Inc., received a Notice of Default, Acceleration and Reservation of Rights (the "Notice") under that certain Third Amended and Restated Secured Promissory Note dated as of November 6, 2023 (the "Note") from NH Expansion Credit Fund Holdings LP ("Holder").

The Notice specifies that an event of default occurred due to (a) a default or event of default having occurred with respect to any other indebtedness of Sprout in excess of $250,000, (b) Sprout's inability to pay its debts generally as they mature, (c) Sprout becoming insolvent, and (d) circumstances occurring which have had and/or could reasonably be expected to have a material impairment in the value of the collateral, a material adverse change in the business, operations, or condition (financial or otherwise) of Sprout or a material impairment of the prospect of repayment of any portion of the Note.

As of the date of the Notice, Sprout had outstanding $13.0 million of principal under the Note, along with $3.9 million of interest through March 21, 2024 and additional interest accruing at the default rate following the date of the notice, totaling approximately $94 thousand through March 31, 2024.