Provides Q2 Revenue Guidance and Corporate Update
LONDON, Ontario, July 29, 2020 (GLOBE NEWSWIRE) — Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF) is pleased to announce its senior lender has extended the maturity of the Company’s senior secured demand loan and factoring agreement (the terms of which are discussed in the Company’s press release dated October 15, 2019) until October 31, 2021. In consideration for this extension, Indiva will pay an extension fee of $73,450, and the annual coupon will increase by two percent. Consistent with the existing agreement, there is no penalty for early repayment, and management continues to evaluate options to refinance the debt at more advantageous terms.
Q2 2020 Revenue Guidance and Corporate Update
The Company is pleased to share that it expects Q2 2020 net revenue in the range of $2.3 to $2.8 million. This represents over 1,200% year-over-year and 15% sequential net revenue growth, at the low end of the revenue guidance range. The increase was driven primarily by higher sales of 2.0 products and capsules. The Company is also pleased to announce it has received initial purchase orders for Wana Gummies in excess of $750,000 from two western provinces, with more orders expected from other provinces in the coming weeks. Additionally, the Company has also completed installation of an automated pre-roll line to its production facility in London. This addition will allow for increased output of Indiva’s pre-rolls, as well as improved efficiency and profitability. Lastly, the Company has also identified upwards of $1 million of annual cost savings and efficiencies which will begin to positively impact financial results as early as Q3 2020.
We are very pleased with the debt extension provided by our senior lender.
Niel Marotta, President and CEO of Indiva
We are also very excited about the upcoming Wana Gummie launch and the upgrade to our London production facility. The new automated pre-roll line means we can produce high-quality products at a faster rate, fulfilling consumer demand across more provinces. We are excited to continue providing quality pre-rolls to of-age Canadians.
Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible products and provides production and manufacturing services to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang® Chocolate, Wana Sour Gummies, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt 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.
Meagan Kelly, Marketing and Communications Specialist
Steve Low, Investor Relations