Canada NewsWire
LONDON, ON, Aug. 29, 2019
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LONDON, ON, Aug. 29, 2019 /CNW/ - Indiva Limited (the "Company" or "Indiva") (TSXV:NDVA) (OTCQX:NDVAF) today announced its financial and operating results for the second quarter ending June 30, 2019. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). For a more comprehensive overview of the corporate and financial highlights presented in this press release, please refer to Indiva's Management's Discussion and Analysis of Financial Condition and Results of Operations for the three and six month periods ended June 30, 2019, and the Company's Condensed Consolidated Interim Financial Statements for the three and six month periods ended June 30, 2019, which are filed on SEDAR and available on the Company's website www.indiva.com.
KEY OPERATING RESULTS AND HIGHLIGHTS FROM Q2 2019
PRODUCTION AND DISTRIBUTION EXPANSION
"I am pleased with the solid foundation that we have built as we look ahead towards the legalization of edibles and derivative products in Canada," Niel Marotta, Indiva's President and Chief Executive Officer said. "Our strategic focus has always been on delivering exceptional cannabis and cannabis-infused products, as laws permit. Since our inception, we have secured partnerships and established joint ventures to gain exclusive access in Canada to formulations from award-winning U.S. brands like BhangTM and RubyTM. Our results from the second quarter show improved and positive gross margins, and incremental licensed capacity, which came online in late Q2 2019. Going forward, we believe that this additional capacity will drive significant sequential and year-over-year revenue growth. Indiva remains 100% committed to operating within the rules of the Cannabis Act as we patiently await our licence amendments. Our recent announcement to provide extraction services to TerrAscend is an example of our focus on being a provider of premium cannabis products and a partner to our fellow licensed producers. Finally, as we look ahead to Cannabis 2.0, Indiva is perfectly positioned to lead. As we receive the necessary licences, we expect to deliver safe, high-quality edibles and derivatives that make a mark on Canada's cannabis industry."
SELECT FINANCIAL INFORMATION SIX MONTHS ENDED JUNE 30, 2019
Cash | $3,875,924 |
Total assets Gross revenue | $30,188,355 $492,415 |
Net revenue Operating expenses | $414,869 $5,513,315 |
Net loss | $5,875,476 |
Total comprehensive loss | $5,930,976 |
Net loss per common share | $0.07 |
Weighted average common shares, basic and diluted | 83,036,228 |
Q2 2019 | Q2 2018 | Q1 2019 | 6 MONTHS Q2 2019 | 6 MONTHS Q2 2018 | |
Gross revenue | $205,753 | $- | $286,662 | $492,415 | $- |
Net revenue (net of excise tax) | $173,500 | $- | $241,369 | $414,869 | $- |
Gross margin (before adjustments) | $46,286 | $- | $(163,966) | (117,680) | $- |
Gross margin % | 26.7% | nil | (67.9)% | (28.4)% | nil |
Operating expenses | $2,298,136 | $1,739,076 | $3,633,499 | $5,513,315 | $3,321,769 |
Net loss | $2,287,012 | $2,062,665 | $3,628,481 | $5,875,476 | $4,079,353 |
Total comprehensive loss | $2,302,495 | $2,072,431 | $3,628,481 | $5,930,976 | $4,116,618 |
Net loss per common share | $0.03 | $0.03 | $0.04 | $0.07 | $0.05 |
Weighted average common shares, basic & diluted | 83,036,228 | 80,991,228 | 83,036,228 | 83,036,228 | 76,790,315 |
OPERATING AND FINANCIAL METRICS FOR Q2 FISCAL 2019
POSITIONED TO LEAD IN CANNABIS 2.0
Cannabis 2.0 presents a significant opportunity in Canada and the Company is well positioned to capitalize on the availability of new products in the marketplace. Indiva is positioned to deliver premium products, backed by U.S.-based national leaders in edible formulations, to new and experienced cannabis consumers. As the exclusive producer and distributor of BhangTM chocolate in Canada, through a joint venture, Indiva anticipates having the necessary capacity to meet consumer demand and some of the best-tasting products on the market.
As recently reported by Lift & Co. and Ernst and Young, the legalization of edibles and derivative products may introduce 3 million new consumers to the cannabis market, with 1.5 million directly attributed to edibles consumption. Statistics Canada data also suggests that women, who make up a disproportionately small amount of current consumers, are three times more likely than their male counterparts to consume cannabis through oils, edibles and derivative products. Indiva remains committed to providing new and established consumers with the very best cannabis in a variety of formats at a reasonable price.
With more retail locations opening in Ontario and nationwide, Indiva plans to explore new provincial partnerships to distribute INDIVA™, Bhang™, and Ruby™ products to Canadians coast-to-coast. As the Company transitions from infrastructure and capacity building to leveraging the economies of scale, Indiva is prepared to evolve from a craft provider to a national partner and distributor of products that stand out for their quality and creativity.
ABOUT INDIVA
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 Salt, 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.
DISCLAIMER AND READER ADVISORY
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the Transaction and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the Company's future operations, future product offerings and entry into additional markets, changes to laws and regulations in Canada and internationally, and compliance with applicable regulations. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the parties. The material factors and assumptions include the parties being able to obtain the necessary regulatory and other third parties' approvals and licensing and other risks associated with regulated entities in the cannabis industry. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.
SOURCE Indiva Limited
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