Indiva Announces White-Label Partnership With Dycar Pharmaceuticals Ltd. and Unsecured Convertible Debenture Financing Up to $4 Million
LONDON, Ontario, Dec. 06, 2019 (GLOBE NEWSWIRE) — Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF) is pleased to announce a strategic partnership with Dycar Pharmaceuticals Ltd. (“Dycar”) and a concurrent non-brokered unsecured convertible debenture financing of up to $4 million.
DYCAR PRODUCTION AND DISTRIBUTION PARTNERSHIP
Indiva has entered into a financing and white-label manufacturing arrangement with Dycar. Under the terms of the letter agreement, Dycar will provide Indiva with initial non-dilutive financing of $3.1 million, and Indiva will manufacture and distribute certain Dycar-branded cannabis products from the Company’s licensed facility in London, Ontario. The financing will be repaid by the deduction of Indiva services in kind to Dycar. The letter agreement may be renewed at the option of Dycar for a minimum of two additional terms, resulting in up to $4.5 million of additional non-dilutive financing. Indiva anticipates that it will begin the production of Dycar branded products in Q1 2020.
We are delighted to add such a high-quality partner to our B2B platform. Dycar and Indiva are very much aligned in our shared pursuit of delivering the very best products to market. We are very excited to begin working with the Dycar team and creating new products that meet and exceed customer and consumer expectations.
Niel Marotta, President and Chief Executive Officer of Indiva
Funding is expected to occur in mid-December 2019, subject to the satisfaction of customary conditions including the execution of definitive agreements and receipt of applicable third party approvals.
CONVERTIBLE DEBENTURE FINANCING
Indiva is also announcing a concurrent non-brokered unsecured convertible debenture financing of up to $4 million. The Company will issue debentures at a price of $1,000 per debenture with each debenture convertible into 5,000 Indiva common shares at a price of $0.20 per share. The debentures will receive 10% interest paid semi-annually, on June 30 and December 31, and will mature 36 months from the date of closing. The financing is expected to close on or around December 10, 2019, subject to the approval of the TSX Venture Exchange. Certain principals of Dycar are expected to participate in the financing.
Indiva’s family of cannabis brands set the standard for quality and innovation. Indiva aims to bring its exceptional portfolio of products to Canadians and cannabis enthusiasts around the world as laws permit. Indiva’s production facility, based in London, Ontario, includes a craft grow operation and an extraction and manufacturing space, which can process 70 tonnes of biomass annually and produce safe, high-quality, cannabis-infused edibles. In Canada, Indiva will produce and distribute Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt and Gems™, as well as the award-winning Bhang® Chocolate, and other derivative products through licence agreements and joint ventures. Click here to connect with Indiva on social media and here to find more information on the Company and its products.