Indiva Reports Preliminary First Quarter Fiscal 2020 Results and Announces Updated Filing Timeline For Q4 Fiscal 2019 Due To COVID-19
Bhang® Chocolate continues to lead Ontario edibles category
LONDON, Ontario, April 23, 2020 (GLOBE NEWSWIRE) — Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF) is pleased to announce preliminary financial and operating results for the first quarter ending March 31, 2020.
The first quarter of 2020 saw a marked increase in the Company’s sales as a result of receiving our edibles sales licence and beginning to distribute Bhang® Chocolate in Canada.
Niel Marotta, Indiva’s President and Chief Executive Officer
With top-selling edibles, near-national reach and a growing portfolio of proven, trusted brands, we believe this quarter’s preliminary results show that Indiva is on the right track to deliver, not just for consumers, but for our shareholders as well. We look forward to sharing more comprehensive results about Indiva’s Q1 2020 performance by June 1, 2020.
PRELIMINARY Q1 FISCAL 2020 HIGHLIGHTS
- Sales, net of excise, for the quarter are expected to be in the range of $2.0 to $2.2 million versus $0.2 million in Q1 2019 and $0.3 million in Q4 2019 reflecting robust sales of Bhang® Chocolate and growing distribution to four additional provinces.
- Assuming the low end of Q1 2020 sales guidance, Indiva experienced 518% sequential quarterly sales growth when compared to Q4 2019. This growth reflects less than two months of edibles sales during the quarter, which began on February 8, 2020. Indiva brought new products to market just eight days after the Company received its edibles, extracts and topicals sales licence.
- March 2020 sales, net of excise, totaled approximately $1.4 million, the highest monthly sales in Company history.
- As of April 23, 2020, Bhang® Milk and Dark Chocolate remain the #1 and #2 SKUs in the Ontario Cannabis Store’s edibles category by dollars and unit sales.
- Across the three categories in which Indiva competes, namely, edibles, pre-rolls and capsules, Bhang® Milk Chocolate remains the #1 SKU measured by dollars and units.
- Currently, Indiva has distribution agreements in place with seven provinces and products are currently available in six of those provinces.
SIGNIFICANT EVENTS IN THE FIRST QUARTER OF 2020
- On January 7, 2020, Indiva delivered its first shipment of Sugarleaf by 7AC pre-rolls.
- On January 20, 2020, Indiva closed the final tranche of its unsecured convertible debenture offering and on January 31, 2020, the Company announced that it had raised an additional $1.5 million in unsecured convertible debentures with W. Brett Wilson. Gross proceeds from the offering totalled $4.6 million.
- On January 31, 2020, Indiva received its edibles, extracts and topicals sales licence from Health Canada. Indiva now has all required production, processing and sales licences.
- On February 8, 2020, Indiva began shipping Bhang® Chocolate to Ontario, Saskatchewan, Alberta and Nova Scotia.
- On February 18, 2020, Indiva announced that it had finalized its white-label licensing and manufacturing agreement with Dycar Pharmaceuticals, including $3.6 million in prepaid services, with follow on pre-payments to come in the amount of $4.5 million.
- On February 27, 2020, Indiva announced that it had launched a branded CannSell education module for Ontario budtenders through Lift & Co furthering its commitment to educating Ontario’s retail teams.
- On March 10, 2020, Indiva announced an exclusive licence agreement with Wana Brands to produce and distribute their award-winning cannabis-infused sour gummies in a variety of award-winning flavours and formats. The company expects to begin production and distribution of Wana Sour Gummies in Q3 2020.
- On March 31, 2020, Indiva announced that it had received its final licence amendment for its phase four expansion. With that approval, the Company’s London, Ontario-based facility became completely licensed.
- To date, Indiva has secured product distribution with seven provinces including Ontario, British Columbia, Alberta, Nova Scotia, Manitoba and Saskatchewan, covering 96% of the Canadian population.
As discussed in its March 31, 2020, release, Indiva Announces Amendment and Expansion to Licence and Provides Corporate Update, Indiva continues to manage the effects of COVID-19. The Company’s main priority remains the health and safety of its employees. As Canada enacted sweeping new policies to contain COVID-19, the Company instituted significant internal protocol changes to meet and exceed all provincial public health directives. As an essential business, Indiva is committed to continuing to serve Canadian consumers while maintaining strict health and hygiene processes at its facility. The Company will continue to monitor the situation and adjust as needed and appropriate.
UPDATED FILING TIMELINE FOR Q4 FISCAL 2019
The Company also announces that due to delays caused by the COVID-19 virus, it is relying on the exemption provided in Ontario Instrument 51-502 – Temporary Exemption from Certain Corporate Finance Requirements (the “Ontario Instrument”) of the Ontario Securities Commission (and similar exemptions provided by other Canadian securities regulators) to postpone the filing of the following continuous disclosure documents (collectively the “Documents”):
- the Company’s Annual Audited Financial Statements for the twelve-month period ended December 31, 2019 as required by section 4.2 of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”); and
- the Company’s Management Discussion & Analysis for the twelve-month period ended December 31, 2019, as required by section 5.1(2) of NI 51-102.
According to the Ontario Instrument, during the period from March 23, 2020, to June 1, 2020, a person or company required to make certain filings as described in the Ontario Instrument has an additional 45 days from the deadline otherwise applicable under Ontario securities laws to make the filing. Until the Company has filed the required financial statements and management’s discussion and analysis, members of the Company’s management and other insiders are subject to an insider trading black-out policy that reflects the principles in section 9 of National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
The Company expects to file the Documents by no later than May 15, 2020.
Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, oils, and edible products and provides production, manufacturing and refinement services to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang® Chocolate, Wana Sour Gummies, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, Gems™, and other Powered by INDIVA™ products through license agreements, partnerships and joint ventures. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.
Vice President of Marketing and Communications