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This additional capital paves the way for Indiva to lead in Cannabis 2.0
LONDON, ON, Oct. 15, 2019 /CNW/ – Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF) is pleased to announce that it has entered into definitive documentation with an institutional lender in respect of a $7,500,000 secured bridge loan facility (the “Bridge Facility”) and a $6,500,000 secured demand loan facility (the “Demand Facility”, and together with the Bridge Facility, the “Facility”), for aggregate debt financing in an amount up to $11 million.
As we look ahead towards Cannabis 2.0, we are pleased to secure the necessary capital to execute on growth objectives.
Niel Marotta, Indiva’s President and Chief Executive Officer
This financing will support the launch of our refinement, production and manufacturing capabilities and position the Company well as it prepares to bring its portfolio of premium edible products to market.
The Bridge Facility permits the Company to draw a certain amount of the gross face value of eligible invoices and the Demand Facility permits the Company to draw up to $6.5 million at a 9% interest rate above the Bank of Montreal prime rate. The Company may repay the Demand Facility at any time without penalty. The Company has granted security over its assets in connection with the Facility, and is subject to certain restrictive covenants under the Facility.
In connection with the Facility, the Company intends to pay a finder’s fee to Manor Financial Ltd., an arm’s-length third party, in an amount equal to 2% of the value of the Facility, of which $100,000 will be payable in cash and the remainder in Indiva shares at a price per share of $0.32.
The proceeds under the Facility are expected to be used for repayment of an outstanding convertible debenture and related interest, Indiva’s facility expansion, capital purchases of extraction and encapsulation equipment, as well as bulk biomass purchases and general working capital.
As laws permit, Indiva will deliver its award-winning portfolio of products to Canadian consumers including Bhang™ Chocolate. Indiva will also make Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, and Ruby® Gems available in early 2020.
Indiva’s global 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 aeroponic, environmentally-conscious grow rooms and a nearly completed extraction and manufacturing space, which will be able to 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 Ruby® 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.
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