Indiva Reports Record Second Quarter Fiscal Year 2020 Final results

LONDON, Ontario, Sept. 01, 2020 (GLOBE NEWSWIRE) — Indiva Restricted (the “Business” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), a top Canadian producer of cannabis edibles and other cannabis goods, is pleased to announce its economic and operating outcomes for second quarter fiscal 2020 ended June 30, 2020. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva’s economic statements are ready in accordance with International Economic Reporting Requirements (“IFRS”). For a extra extensive overview of the corporate and economic highlights presented in this press release, please refer to Indiva’s Management’s Discussion and Evaluation of Economic Situation and Final results of Operations for the 3 and Six Months Ended June 30, 2020, and the Company’s Condensed Consolidated Interim Economic Statements for the 3 and Six Months Ended June 30, 2020 and 2019, which are filed on SEDAR and readily available on the Company’s web site, www.indiva.com.

“We are pleased to report robust sequential and year-more than-year income development, and enhanced and good profit margin in the second quarter of 2020,” stated Niel Marotta, President and Chief Executive Officer of Indiva. “We added provincial agreements with Manitoba, New Brunswick, and Yukon Territory, expanding Indiva’s distribution network to eight provinces and 1 territory. This quarter also saw the launch of our INDIVA™ CBD Softgels, as nicely as Bhang® CBD-Dominant Milk Chocolate. Bhang® goods continue to be prime-promoting edibles and higher-velocity SKUs across Canada. We also secured extra than $1.1 million of initial buy orders to date for Wana™ Sour Gummies, which are set to be readily available in retailers across the nation in September. With numerous prime-tier goods each in the industry and on their way, we are hunting forward to capitalizing on our accomplishment and earning extra consumers’ loyalty by continuing to offer the highest top quality cannabis goods to Canadians.”

HIGHLIGHTS

Quarterly Efficiency

  • Gross income in Q2 2020 was $two,826,487 representing a 24.eight% sequential raise from Q1 2020, and a 1273.7% raise year-more than-year from Q2 2019.
  • Net income in Q2 2020 was $two,559,704 representing a 27.1% sequential raise from Q1 2020, and a 1375.three% raise year-more than-year from Q2 2019 driven mostly by sales of Cannabis two. goods.
  • The Business realized $128,900 in tolling income attributable to processing and service arrangements.
  • Gross margin prior to fair worth adjustments was $21,478 versus a loss of $(342,531) in Q1 2020, due to price savings and efficiencies from capital investments. Adjusted gross margin would have been $119,873 pro-forma to reflect the new royalty agreement with Bhang®.
  • Operating costs decreased by 30.9% versus Q2 2019 and declined 11% sequentially versus Q1 2020 to $1.six million, mostly due to enhanced price handle and capitalization of charges connected to production.
  • Bhang® Chocolate sales totaled $1,540,720, net of excise taxes in the quarter.
  • Bhang® Chocolate remained the prime-promoting chocolate in most key markets.
  • At present, Indiva has distribution agreements in location with eight provinces and 1 territory.

Events Subsequent to Quarter Finish

  • Extra than $1.1 million of initial buy orders have been secured for Wana™ Sour Gummies.
  • Industrial production of Wana™ Sour Gummies started, with deliveries of the initially 3 SKUs to provincial wholesalers anticipated in early September. The initial launch will incorporate Mango Sativa, Watermelon Hybrid, and Strawberry Lemonade 1:1 flavours.
  • Indiva secured an agreement with CannMart Inc., a wholly owned subsidiary of Namaste Technologies Inc., which will see INDIVA™ CBD Softgels and INDIVA™ Indica Capsules readily available on CannMart’s B2C distribution channel for their health-related consumers by the finish of August, with Bhang® Chocolate and Wana™ Sour Gummies to comply with later in the year.
  • Indiva entered into an amended license agreement with Bhang®, providing the Business the exclusive suitable to manufacture and sell Bhang® THC-infused chocolate goods in Canada, and the non-exclusive suitable to export these goods internationally.
  • Indiva created its initially shipments of Artisan Batch premium cannabis to provincial wholesalers.
  • The Business identified upwards of $1 million of annual price savings and efficiencies which will start to positively effect economic outcomes as early as Q3 2020.
  • On July 29, 2020, Indiva announced the extension of the maturity of its senior debt to October 31, 2021.
  • On August ten, 2020, Indiva announced completion of its equity financing, closing on a final tranche of $four.17 million for a total of $five.18 million.
  • Functioning capital has substantially enhanced as a outcome of the extension of the senior debt and completion of the equity financing.

Business Updates and Outlook

Top quality 1st: Indiva started shipments of craft cannabis beneath the Artisan Batch brand. The cannabis is sourced by means of the Company’s partnership with BC Craft Provide Co. Ltd. (“BC Craft”) (CSE: CRFT), discovering craft and micro-cultivation gardens which pride themselves on the top quality, potency and terpene profile of their strains. Indiva intends to comply with up this launch with additional higher-potency flower SKUs to be sold nationally beneath the INDIVA™ brand, representing the greatest of Canadian cannabis.

Sweet, Salty, and Sour: Indiva is set to release Ruby® Cannabis Sugar and Sapphire™ Cannabis Salt as early as Q4 2020, adding to its industry-top portfolio of edibles. Ruby® and Sapphire™ use Crystal Fusion Technology™, which mechanically fuses cannabinoids inside the crystal structures of sugar and salt. Indiva also intends to introduce Jewels sweet-and-sour candies. Jewels combine Ruby® Cannabis Sugar with true fruit to generate a delightful candy. In addition, Indiva will be delivering additional Wana™ Sour Gummies SKUs, which are vegan and gluten-totally free. Wana™ gummies lead the United States edibles industry in dollars sold. These new goods will aid position Indiva as 1 of Canada’s most revolutionary cannabis providers.

Large Bhang: Bhang® Chocolate remains the leader in the edibles category in numerous provinces, and the release of Bhang® Caramel Dark Chocolate THC/CBD 1:1 will aid hold this position in the industry. Indiva’s technique to companion with trusted and confirmed brands is backed up by Bhang®’s industry-top efficiency.

On a Roll: Indiva completed installation of an automated pre-roll line at its production facility in London. This addition will enable the Business to raise output of Indiva’s pre-rolls and introduce extra SKUs, as nicely as strengthen efficiency and profitability.

OPERATING AND Economic Final results FOR THE 3 MONTHS ENDED JUNE 30, 2020

Summary Economic Information

three months ended June 30, 2020 six months ended June 30, 2020
(in thousands of $, except per share figures) 2020 2019 2020 2019
Gross income two,826.four 205.eight five,091.three 492.four
Net income two,559.7 173.five four,573. 414.9
Net loss and extensive loss (two,528.7 ) (two,302.five ) (four,966.eight ) (five,931. )
Adjusted EBITDA1 (1,247.eight ) (1,804.9 ) (two,911.five ) (four,859.four )
Net loss per share – fundamental and diluted (.03 ) (.03 ) (.06 ) (.07 )
Extensive loss per share – fundamental and diluted (.03 ) (.03 ) (.06 ) (.07 )

1 The Business calculates Adjusted EBITDA as a sum of net income, other revenue, price of inventory sold, production salaries and wages, production supplies and expense, basic and administrative expense, and sales and advertising expense, as determined by management. Adjusted license charge eliminates 50% of the charge which is equivalent to the Company’s share of the joint venture organization to which the license charge is paid. Adjusted EBITDA is offered to help readers in figuring out the capability of the Business to create money from operations and to cover economic charges.

Operating Expenditures

three months ended March 31, 2020 six months ended June 30, 2020
(in thousands of $) 2020 2019 2020 2019
Common and administrative 1,178.9 1,437.three two,666.two three,815.9
Marketing and advertising and sales 229.9 413.eight 510.1 925.eight
Analysis and improvement 1.1 49.three two.9 94.7
Share-primarily based compensation 115.five 228.four 111.six 367.
Depreciation of house, plant and gear 61.four 161.7 88.eight 290.four
Amortization of intangible assets .1 7.six .two 19.five
Total operating costs 1,586.9 two,298.1 three,379.9 five,513.three

Quarterly Final results

(in thousands of $, except per share figures) Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019
Net income two,559.7 two,013.three 323.five 185.five 173.five
Extensive net loss (two,528.7 ) (two,438.1 ) (two,840.two ) (two,626.7 ) (two,302.five )
Simple and diluted loss per share (.03 ) (.03 ) (.04 ) (.03 ) (.03 )

COVID-19
Government and private entities are nevertheless assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced well being and security protocols in location to shield its workers. The Business continues to assess the consumer, provide chain, and staffing implications of COVID-19 and is committed to producing continuous adjustments to lessen disruption and effect. Indiva will stay proactive in its response to the pandemic and compliant with any and all provincial and/or federal policy enacted to shield Canadians.

ABOUT INDIVA

Indiva sets the typical for top quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible goods and offers production and manufacturing solutions to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang® Chocolate, Wana™ Sour Gummies, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, Artisan Batch, and other Powered by INDIVA™ goods by means of license agreements, partnerships, and joint ventures. Click right here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and right here to locate extra data on the Business and its goods.

CONTACTS
MEDIA Make contact with
Meagan Kelly, Marketing and advertising and Communications Specialist
Telephone: 613-979-6347
E-mail: [email protected]

INVESTOR Make contact with
Anthony Simone
Telephone: 416-881-5154
E-mail: [email protected]

Steve Low
Telephone: 647-620-5101
E-mail: [email protected]

DISCLAIMER AND READER ADVISORY

Neither the TSX Venture Exchange nor its Regulation Solutions Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this press release and neither of the foregoing entities accepts duty for the adequacy or accuracy of this release or has in any way authorized or disapproved of the contents of this press release.

Particular statements contained in this press release constitute forward-hunting data. These statements relate to future events or future efficiency. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and related expressions and statements relating to matters that are not historical information are intended to determine forward-hunting data and are primarily based on the parties’ existing belief or assumptions as to the outcome and timing of such future events. Actual future outcomes may perhaps differ materially. In certain, this release consists of forward-hunting data relating to the Company’s future operations, future item offerings and compliance with applicable regulations. A variety of assumptions or elements are normally applied in drawing conclusions or producing the forecasts or projections set out in forward-hunting data. These assumptions and elements are primarily based on data at present readily available to the parties. The material elements and assumptions incorporate the parties getting capable to retain the essential regulatory and other third parties’ approvals and licensing and other dangers connected with regulated entities in the cannabis market. The forward-hunting data contained in this release is created as of the date hereof and the parties are not obligated to update or revise any forward-hunting data, regardless of whether as a outcome of new data, future events or otherwise, except as needed by applicable securities laws. For the reason that of the dangers, uncertainties and assumptions contained herein, investors must not location undue reliance on forward hunting data. The foregoing statements expressly qualify any forward-hunting data contained herein.

This press release does not constitute an give to sell or a solicitation of an give to get any of the securities in the United States. The securities have not been and will not be registered beneath the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may perhaps not be provided or sold inside the United States or to U.S. Persons unless registered beneath the U.S. Securities Act and applicable state securities laws or an exemption from such registration is readily available. Not for distribution to U.S. Newswire Solutions or for dissemination in the United States. Any failure to comply with this restriction may perhaps constitute a violation of U.S. Securities laws.

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