Indiva Remains the National Market Share Leader
in the Edibles Category and Ranks #2 Nationally in Unit Share
Across All Cannabis Categories
Indiva Limited (the "Company" or "Indiva")
(TSXV:NDVA), the leading Canadian producer of cannabis edibles, is
pleased to announce its financial and operating results for the
fourth quarter and fiscal year ended December 31, 2023. 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 news release, please refer to Indiva's
Management's Discussion and Analysis of Financial Condition and
Results of Operations for the Year Ended December 31, 2023, and the
Company's Consolidated Financial Statements for the Years Ended
December 31, 2023 and 2022, which are filed on SEDAR+ and available
on the Company's website, www.indiva.com.
"We are very pleased with our performance in the fourth quarter
and fiscal year 2023, generating record net revenue, improved gross
margins as well as record positive EBITDA and income from
operations. Our Net Income was just shy of break-even in Q4, which
is a testament to the popularity of our products, our industry
leading low-cost production platform, and our focus on cost
control. Our core brands, namely Pearls by Gr�n, No Future, Bhang
Chocolate and Indiva Blips continue to gain market share in Canada,
as Indiva continues to hold the #1 market share position in edibles
nationally," said Niel Marotta, President and Chief Executive
Officer of Indiva. "More importantly, our revenue mix continues to
shift towards brands and products that were developed in-house at
Indiva, demonstrating that Indiva's core competency goes beyond
leading the industry as the low-cost producer of edibles, but also
as a best-in-class innovator of beloved edible products. 35% of net
revenue in Q4 2023 was derived from brands created and owned by
Indiva including Indiva 1432 chocolate, Indiva Blips, Indiva Doppio
Sandwich Cookies, and No Future gummies and vapes, up from 20% of
net revenue in Q1 2023. Further, Indiva achieved 27 new SKU
listings in 2023, and has already received 10 additional SKU
listings in 2024. 24 of the 27 new SKU introductions in 2023, and 9
of 10 new SKUs accepted for listing thus far in 2024, are from
in-house innovation and owned brands," continued Marotta. "We still
strongly believe that an increase in allowable THC per pack of
edibles would improve public safety, and while we were very
disappointed in the results and recommendations from the
legislative review published in late March, Indiva remains
committed to product innovation that will support both industry and
edible category growth. Our enthusiasm to continue to delight
of-age cannabis enthusiasts in Canada is unwavering, and we have a
robust pipeline of new products which will hit market in the second
quarter and in the second half of 2024."
HIGHLIGHTS
Quarterly Performance
- Gross revenue in Q4 2023 was a record $12.6 million,
representing a 15.5% sequential increase from Q3 2023, and a 21.9%
increase year-over-year from Q4 2022.
- Net revenue in Q4 2023 was a record $10.9 million, representing
a 11.0% sequential increase from Q3 2023, and a 16.8% increase
year-over-year from Q4 2022, driven primarily by strength in core
brands, including Pearls by Gr�n, where net revenue grew by greater
than 360% year-over-year, as well as strong contribution from No
Future gummies. The growth in core brands was offset by weaker
revenue from Wana Sour Gummies, which reported 75.5% lower net
revenue year-over-year, due to the transition to contract
manufacturing in June of 2023. The loss of revenue from lozenges,
due to Health Canada's removal from market following a
determination that these are edible products, reduced net revenue
in the quarter by greater than $1 million versus Q4 2022. In
aggregate, the decline in Wana and loss of lozenge revenue totalled
$4.6 million of net revenue. This reduction in net revenue from
Wana and lozenges was more than offset by growth in Pearls by Gr�n
and the introduction of No Future gummies and vapes, which in total
accounted for greater than $6.7 million of incremental revenue in
the quarter. Net revenue from No Future gummies alone in the
quarter was greater than 200% of the loss of lozenge revenue.
- Net revenue from edible products was $9.5 million in Q4 2023,
or 87.7% of net revenue, up 5.3% from $9.0 million in Q3 2023 and
up 27.0% from $7.5 million in the prior year period.
- Gross profit before inventory write-down was a record $4.2
million, a 53.3% increase versus Q4 2022 and a 15.4% increase
versus Q3 2023, driven by higher sales of core brands and the
success of new product introductions. Gross margin before inventory
write-down improved to a record 38.5% of net revenue, versus 37.1%
in Q3 2023 and 29.3% in Q4 2022. The improvement in gross margin
percentage year over year was due to higher sales, improved
operating efficiencies and a positive mix shift towards higher
margin products.
- In Q4 2023, Indiva sold products containing a record 218
million milligrams of cannabinoids, the active ingredient in its
products, which represents a 43.7% increase when compared to the
152 million milligrams in product sold in Q3 2023, and a 166.4%
increase compared to 82 million milligrams sold in Q4 2022.
- Impairment charges in the quarter totaled $0.5 million. This
impairment includes a write off of products that did not meet the
Company's quality standards, aged finished goods and obsolete
packaging.
- Operating expenses in the quarter decreased 19.0% year over
year to $3.1 million, a record low at 28.9% of net revenue versus
31.0% in Q3 2023 and 41.7% in Q4 2022. Operating expenses declined
year-over-year due to lower general and administrative costs,
marketing costs, R&D and share based compensation.
- EBITDA was a record positive $0.9 million, or 8.1% of net
revenue in the quarter. Adjusted EBITDA increased sequentially in
Q4 2023 to a record profit of $1.5 million or 13.9% of net revenue,
versus a profit of $1.0 million in Q3 2023, and a loss of $0.6
million in Q4 2022. See "Non-IFRS Measures", below.
- Income from operations was $0.5 million versus $13,000 in Q3
2023 and a loss of $1.7 million in Q4 2022. The significant
improvement in income from operations was driven by higher sales of
core brands, improved margins and lower operating expenses.
- Comprehensive net loss included one-time expenses and non-cash
charges including inventory impairments totaling $0.5 million in Q4
2023 and $0.4 million in Q4 2022. Excluding these charges,
comprehensive loss declined to $0.2 million in Q4 2023 or EPS of
$0.00 versus a loss of $2.3 million in Q4 2022 or EPS of
($0.01).
Fiscal Year 2023 Performance
- Record gross revenue for the year ended December 31, 2023 was
$41.9 million versus $37.7 million for the year ended December 31,
2022, representing an 11.3% year-over-year increase.
- Record net revenue for the year ended December 31, 2023 was
$37.6 million versus $34.4 million for the year ended December 31,
2022, representing a 9.2% year-over-year increase. Net revenue
growth was driven primarily by growth in core brands and new
product introductions, offset by lower revenue from the sale of
Wana Sour Gummies under the contract manufacturing agreement, loss
of revenue from lozenges and the discontinuation of certain
non-core product lines.
- Net revenue from edible products grew to $32.7 million,
representing 87.2% of net revenue for the year ended December 31,
2023, versus $30.5 million or 88.7% of net revenue in the prior
year period.
- Gross profit before inventory write down improved by 26.9% to a
record $13.2 million or 35.1% of net revenue versus $10.4 million
or 30.2% of net revenue for the year ended December 31, 2022, due
to higher sales and increased operating efficiency.
- In 2023, Indiva sold products containing 563.9 million
milligrams of cannabinoids, the active ingredient in its products,
which represents a 137.8% increase when compared to the 237.1
million milligrams in product sold in 2022.
- Operating expenses decreased by 11.3% to $12.6 million versus
$14.3 million for the year ended 2022, primarily due to lower
marketing and sales expenses, lower research and development
expenses and lower share-based compensation. As a percentage of net
revenue, operating expenses decreased to 33.7% for 2023 versus
41.4.% in 2022.
- EBITDA was a record positive $1.6 million, or 4.2% of net
revenue in 2023 versus a loss of $4.8 million in 2022. Adjusted
EBITDA improved to a profit of $2.4 million versus a loss of $1.5
million last year due to higher sales, improved margins and lower
operating expenses.
- Impairment and one-time charges for the year totaled $0.5
million. This write-off includes a provision for aged finished
goods and bulk cannabis products due to aging inventory and
disposal of finished good and work-in-process lozenges which could
not be sold due to Health Canada's order to halt production and
sale of these products as well as a gain on the sale of the Wana
license to Canopy.
- Comprehensive net loss, excluding one-time expenses and
non-cash charges, improved to $4.4 million in fiscal year 2023,
versus a loss of $8.4 million in fiscal year 2022.
Market Share
- Data from Hifyre Inc. for the fourth quarter of 2023 shows
strong sell-through of Indiva's edible products. With 22.9% share
of sales across British Columbia, Alberta, Saskatchewan, Manitoba,
and Ontario, Indiva holds the No. 1 ranking in market share by
sales and units sold in the edibles category driven by continued
growth of Pearls by Gr�n and No Future gummies. Indiva also holds
the No. 1 SKU ranking by sales and units sold in the edibles
category being Indiva's Pearls by Gr�n with Blue Razzleberry 3:1
CBG/THC gummies followed by the No. 2 SKU with Blackberry Lemonade
1:1:1 CBN/CBD/THC gummies. Further, product ranking in Q4 2023
showed three of the Top 10 edible SKUs are Pearls by Gr�n
gummies.
- Q4 2023 edibles market share:
- Ontario: #1 with 24.9% market share.
- Alberta: #1 with 22.2% market share.
- British Columbia: #1 with 28.2% market share.
- Saskatchewan: #6 with 5.0% market share.
- Manitoba: #4 with 7.8% market share.
- Gummies: Indiva's Pearls by Gr�n gummies ranked as #2 in the
edibles category based on sales with 14.5% share and ranked as #1
with 17.4% share based on units sold. Further, No Future gummies
launched in late Q3 and ranked as #7 in the edibles category based
on sales and ranked as #5 based on units sold.
- Chocolate: Indiva held the #1 ranking in market share by sales
and units sold with 32.6% total sub-category share, as Bhang®
ranked as #2 based on sales and ranked as #1 based on units
sold.
- Snacks and Baked Goods: Indiva held the #1 ranking in market
share by sales and units sold with 42.2% total sub-category share,
driven by the success of Doppio Sandwich Cookies.
- Based on data from British Columbia, Alberta, Ontario, Manitoba
and Saskatchewan, the edibles category decreased by 0.4% in Q4 2023
to $63.1 million in retail sales from $63.4 million in Q3 2023 and
decreased by 2.2% versus $64.6 million in Q4 2022.
Operational Highlights for the Year Ended December 31,
2023
Operational Highlights for the First Quarter 2023
- Indiva completed the commissioning of two key pieces of
automation used in the processing and packaging of its top-selling
edible brands. This is an important milestone for the Company as it
allowed Indiva to scale innovation and continue to drive unit costs
lower.
- Indiva began supplying Tilray Brands, Inc.'s ("Tilray")
medical platform with Indiva products. Products are now available
to Tilray medical patients including Pearls by Gr�n, Wana Sour
Gummies, Bhang Chocolate as well as Doppio Sandwich Cookies.
- Indiva signed a non-exclusive agreement with Valiant
Distribution Cannabis, a subsidiary of Canna Cabana Inc, for the
distribution of its products in the province of Saskatchewan. This
agreement simplifies Indiva's path to market in Saskatchewan and
substantially reduces shipping costs.
- Per the Company's news release dated March 14, 2023, the
Company received notification from Health Canada of its
determination that certain of its lozenges had been improperly
classified as an "extract" rather than an "edible" under applicable
cannabis regulations. Health Canada requested that Indiva cease
production of the lozenges, and Indiva immediately complied with
such order. The lozenges subject to this determination were the
Indiva Life Wild Cherry THC Lozenges and Indiva Life Lemon THC
Lozenges in their 100 mg, 250 mg and 500 mg THC per package formats
(the "Products"). Indiva completed a right-sizing of its
production team to reflect the permanent removal of lozenges from
its production schedule.
Operational Highlights for the Second Quarter 2023
- Initial deliveries of Pearls by Gr�n gummies were made to the
province of Alberta. Four flavours were delivered including
Blackberry Lemonade 1:1:1 CBN:CBD:THC, Blue Razzleberry 3:1
CBG:THC, Pomegranate 4:1 CBD:THC and Sour Apple THC.
- Indiva introduced three new chocolates into the Alberta market
under the Indiva 1432 brand, namely 1:1 CBN/THC Dark Chocolate, 1:1
THC/CBD Cookies and Cream and 1:1 THC/CBD Caramel Dark
Chocolate.
- On May 30, 2023 Indiva and Canopy Growth Corporation
("Canopy") entered into a contract manufacturing agreement,
under which Canopy received control of all distribution, marketing,
and sales of Wana branded products in Canada, and Indiva received
the exclusive right to manufacture and supply Wana™ branded
products in Canada to Canopy for a period of five years, with the
ability to renew for an additional five-year term upon mutual
agreement of the parties. As consideration, Indiva completed a
non-brokered private placement offering of common shares of Indiva
whereby Canopy subscribed for an aggregate purchase price of
$2,155,617. The balance of the consideration will be paid by Canopy
to Indiva on May 30, 2024.
Operational Highlights for the Third Quarter 2023
- Indiva launched a new value-focused brand called No Future,
including four gummy SKUs and three 1.2g vape SKUs. The Company
shipped product to British Columbia and Alberta in the third
quarter, as well as initial shipments to Ontario in late September,
and has since fulfilled replenishment orders in all three
provinces.
- Indiva rebranded the Indiva Life Sandwich Cookies as Indiva
Doppio Sandwich Cookies.
- Indiva amended the terms of its existing non-revolving term
loan facility (the "Amended Term Loan") with SNDL Inc.
("SNDL"), and has also entered into a supply agreement with
SNDL (the "Supply Agreement") whereby SNDL will supply the
Company with certain distillate products on an exclusive basis. The
Supply Agreement provides for minimum monthly purchase commitments
by the Company (the "Minimum Purchase Commitment"). The
prices of all products supplied under the Supply Agreement are
subject to periodic adjustments depending on prevailing market
pricing. The Supply Agreement has an initial term of thirty (30)
months, which automatically renews for successive twelve (12) month
periods, unless earlier terminated. Provided that the aggregate
Minimum Purchase Commitment has been met, the Supply Agreement will
automatically terminate upon re-payment of the Amended Term Loan,
unless the Company elects otherwise. The Amended Term Loan extended
the maturity date to February 24, 2026 and extended the existing
security interest in favour of SNDL under the Amended Term Loan to
the Minimum Purchase Commitment. The interest rate and other terms
of the Amended Term Loan remain the same except for the addition of
an event of default, whereby a default under the Supply Agreement
(which if not cured by the applicable time period set out in the
Supply Agreement) would constitute an event of default under the
Amended Term Loan.
Operational Highlights for the Fourth Quarter 2023
- No Future products became available in stores across Ontario,
including four gummy SKUs and three vape SKUs. The Company also
received three additional No Future 1.2 gram vapes for listing with
the OCS including:
- Grape Ape Indica
- Peach Punch Sativa
- Pink Grapefruit Kush Indica
- Additional SKUs accepted for listing which hit shelves in Q4 in
Ontario include:
- Pearls Peach Mango CBD 25-pack
- Indiva 1432 Milk Chocolate1:1 CBG/THC
- Indiva 1432 Dark Chocolate 1:1 CBN/THC
- Indiva 1432 Chocolate with Cookies and Cream 1:1 THC/CBD
- Doppio Pumpkin Spice Latte Sandwich Cookie 1:1 CBD/THC
- Doppio Candy Cane Sandwich Cookie
- The Company received acceptance of three new No Future gummy
SKUs for listing in Alberta, including the Red One, the Pink One,
and the Yellow One, which are expected to be in market by late
November. Additionally, the Company also received three additional
No Future 1.2 gram vape listings in Alberta including Grape Ape
Indica, Peach Punch Sativa and Pink Grapefruit Kush Indica.
Events Subsequent to Year-End
- No Future gummy performance: Since their introduction in August
2023, Indiva has sold greater than 3.6 million No Future gummies,
which have ascended to #2 in market share by dollars in British
Columbia, trailing only Pearls by Gr�n gummies, which rank #1 in
that province. In Alberta, No Future gummies rank #3 and in
Ontario, where the No Future brand launched in October 2023, No
Future gummies already rank #7, with Pearls by Gr�n ranked as #1.
Aggregate weekly depletions for No Future gummies continue their
robust rise, as the brand and its value proposition continue to
gain awareness with consumers and budtenders.
- LIFE financing: Indiva announced the closing of its previously
announced private placement offering pursuant to the listed issuer
financing exemption pursuant to Part 5A of National Instrument
45-106 – Prospectus Exemptions, first announced on January 22,
2024, and then amended and restated on February 28, 2024, pursuant
to which the Company issued 9,060,000 units of the Company for
aggregate gross proceeds of $906,000.
- February market share by dollars improved to 25.2% in the
edible category, across British Columbia, Alberta, Saskatchewan,
Manitoba, and Ontario. Indiva maintained the #1 ranking in market
share by sales and units sold in the edibles category, according to
Hifyre data, and Indiva ranked #2 nationally in overall unit share
across all cannabis categories with 7.3% units share.
- New Product Introductions:
- Pearls: Indiva launched Pearls Lemon Dream CBN 25-pack, which
follows on the success of Marionberry CBG 25-pack and Peach Mango
CBD 25-pack.
- No Future: Indiva launched four additional No Future 1.2g 510
vapes including Grape Ape Indica, Peach Punch Sativa, Tropical
Island Haze and Pink Grapefruit Kush Indica, bringing total No
Future vape SKUs in market to nine. Additionally, the Company
launched three new No Future gummy flavours, the Red One and the
Pink One, bringing total No Future gummy SKUs in market to seven.
Additionally, the Company launched No Future Fatty Patty, an
innovative chocolate covered cookie dough edible with 10mg
THC.
- Blips: Indiva has launched a 55-pack to complement the existing
25-pack of these innovative ingestible extracts. The 55-pack is
available in Alberta and B.C, with the Ontario launch slated for
June 2024.
- Loan Amendment with SNDL: Indiva repaid $2,000,000 of the
principal amount outstanding pursuant to the Amended Term Loan and
shall work to reduce other current liabilities in the near term. In
consideration for the repayment of $2,000,000, the amendment
removed the Company's covenant under the Amended Term Loan to
ensure a $2,000,000 minimum unrestricted cash balance at all times.
The maturity date of the Amended Term Loan continues to be February
24, 2026.
- Engagement of Advisor: The Company has retained SSC Advisors
(the "Advisor"), as its financial advisor, to assist the
Company in the evaluation of potential strategic alternatives
intended to maximize shareholder value, including but not limited
to, financing alternatives, a merger, amalgamation, plan of
arrangement, consolidation, reorganization or other similar
transactions. SNDL and Indiva continue to act as commercial
partners and SNDL remains supportive of Indiva and this process.
SSC Advisors can be reached through Aaron Salz at
aaron@sscadvisors.com. There is no set timetable to complete the
strategic review process nor have any decisions been made relating
to strategic alternatives at this time. There can be no assurance
that the strategic review will result in any binding offer or
transaction.
Outlook
- The Company expects that Q1 2024 net revenue will be lower on a
sequential basis, primarily due to seasonality, and flat
year-over-year, due to the continued growth in Pearls by Gr�n, and
the contribution to revenue from No Future gummies and Indiva Blips
offset by Wana converting to contract manufacturing and the loss of
lozenge revenue. Margins are also expected to decline sequentially
in Q1 2024 due to lower sales and reduced overhead absorption due
to lower production levels as compared to Q4 offset by positive mix
shift and the benefit of the implementation of automation in the
production and packaging of edible products. For the fiscal year
2024, the Company expects to generate record net revenue and record
EBITDA, driven by continued strength in its core brands, bolstered
by new product introductions and continued efficiency gains at the
production facility from automation and process improvements.
OPERATING AND FINANCIAL RESULTS FOR THE
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023
Three months ended
December 31
Twelve months ended
December 31
(in thousands of
$, except gross margin % and per share figures)
2023
2022
2023
2022
Gross revenue
12,552.1
10,294.1
41,925.8
37,676.1
Net revenue
10,865.9
9,306.8
37,570.7
34,402.7
Gross margin before inventory
write-down
4,184.9
2,729.5
13,174.5
10,384.1
Gross margin before inventory write-down
(%)
38.5%
29.3%
35.1%
30.2%
Loss and comprehensive loss
768.8
2,790.6
4,918.3
10,932.1
Adjusted EBITDA[1]
1,509.1
(556.6)
2,355.6
(1,520.7)
EBITDA
881.9
(1,295.4)
1,591.1
(4,809.5)
Earnings Before Interest and Tax
478.5
(1,701.4)
(5.0)
(6,250.2)
Earnings per share – basic and diluted
(0.00)
(0.02)
(0.03)
(0.08)
Comprehensive earnings per share – basic
and diluted
(0.00)
(0.02)
(0.03)
(0.08)
1 See "Non-IFRS Measures", below.
Operating Expenses
Three months ended
December 31
Twelve months ended
December 31
(in thousands of
$)
2023
2022
2023
2022
General and administrative
1,344.5
1,622.8
5,837.8
5,707.1
Marketing and sales
1,473.6
1,643.5
5,352.7
6,527.7
Research and development
177.9
348.0
877.0
1,016.4
Share-based compensation
46.2
156.2
175.6
585.9
Depreciation of property, plant
and equipment
42.5
52.1
185.9
203.0
Amortization of intangible
assets
51.9
51.9
207.5
207.5
Expected credit loss
5.6
4.3
9.6
3.0
Total operating expenses
3,142.2
3,878.7
12,646.0
14,250.6
CONFERENCE CALL - Thursday, April 25, 2024 at 10:30 a.m.
(EST):
The Company will host a conference call to discuss its results
on Thursday, April 25, 2024 at 10:30 a.m. (EST). Interested
participants can join by dialing 289-514-5100 or 1-800-717-1738.
The conference ID is 69182.
A recording of the conference call will be available for replay
following the call. To access the recording please dial
289-819-1325 or 1-888-660-6264. The replay ID is 69182#. The
recording will remain available until Thursday, May 23, 2024.
PRIVATE PLACEMENT UPDATE
Further to the Company's news release dated March 22, 2024, the
Company's non-brokered private placement pursuant to the listed
issuer financing exemption has expired.
ABOUT INDIVA
Indiva is proud to be Canada's #1 producer of cannabis edibles.
Indiva sets the gold standard for quality and innovation with
award-winning products across a wide range of brands including
Pearls by Gr�n, No Future Gummies and Vapes, Bhang Chocolate,
Indiva Blips Tablets, Indiva Doppio Sandwich Cookies, and Indiva
1432 Chocolate. Indiva manufactures its top-quality products in its
state-of-the-art facility in London, Ontario, and has a corporate
workforce remotely distributed across Canada. Connect with Indiva
on LinkedIn or Instagram, or visit Indiva's website to find more
information on the Company and its products.
DISCLAIMER AND READER ADVISORY
General
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
contents of this news release and neither of the foregoing entities
accepts responsibility for the adequacy or accuracy of this news
release or has in any way approved or disapproved of the contents
of this news release.
Certain statements contained in this news 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
news release contains forward-looking information relating to,
among other things, (i) the Company's outlook for and expected
operating margins and future financial results, (ii) the projected
growth of its business and operations (including existing and new
segments thereof), and the future business activities of, and
developments related to, the Company within such segments after the
date of this news release, (iii) additional jurisdictions within
which the Company may establish its operations or business
footprint, (iv) the Company's ability to capture and/or maintain
its market share in any jurisdiction, (v) the Company's ability to
deliver on its commitments for existing or new listings of
products, (vi) the Company's ability to benefit from its licensing
deals, (vii) the Company's ability to continue to innovate and
introduce new products, (viii) the Company's ability to monetize
any impaired inventory which remains saleable, (ix) the Company's
ability to conduct sensory evaluation trials of medicated samples
on site, (x) the Company's ability to deliver new products to the
market within a set timeframe, if at all, (xi) the proposed
telephone conference call being held by the Company on April 25,
2024, and (xii) the ability of the Company and the Advisor to
identify and evaluate strategic alternatives. 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 Company, and include, without
limitation, assumptions about the Company's future business
objectives, goals, and capabilities, the cannabis market, the
regulatory framework applicable to the Company and its operations,
and the Company's financial resources. Although the Company
believes that the assumptions underlying, and the expectations
reflected in, forward-looking statements in this news release are
reasonable, it can give no assurance that such expectations will
prove to have been correct. A number of factors could cause actual
events, performance or results to differ materially from what is
projected in the forward-looking statements. Specifically, readers
are cautioned that forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company, as
applicable, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements, including, but not limited to, risks
and uncertainties related to: (i) the available funds of the
Company and the anticipated use of such funds, (ii) the
availability of financing opportunities, (iii) legal and regulatory
risks inherent in the cannabis industry, (iv) risks associated with
economic conditions, (v) dependence on management, (vi) public
opinion and perception of the cannabis industry, (vii) risks
related to contracts with third-party service providers, (vii)
risks related to the enforceability of contracts, (viii) reliance
on the expertise and judgment of senior management of the Company,
and ability to retain such senior management, (ix) risks related to
proprietary intellectual property and potential infringement by
third-parties, (x) risks relating to the management of growth
and/or increasing competition in the industry, (xi) risks
associated to cannabis products manufactured for human consumption,
including potential product recalls, (xii) risks related to the
economy generally, and (xiii) risk of litigation.
The forward-looking information contained in this news release
is made as of the date hereof and the Company is not obligated to,
and does not undertake 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 inherent in
forward-looking information, investors should not place undue
reliance on forward looking information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI")
about the Company's prospective results of operations, which are
subject to the same assumptions, risk factors, limitations, and
qualifications as set out in the above paragraph. FOFI contained in
this news release was approved by management as of the date of this
news release and was provided for the purpose of providing further
information about the Company's future business operations. The
Company disclaims any intention or obligation to update or revise
any FOFI contained in this news release, whether as a result of new
information, future events or otherwise, unless required pursuant
to applicable law. Readers are cautioned that the FOFI contained in
this document should not be used for purposes other than for which
it is disclosed herein.
Non-IFRS Measures
This news release makes reference to certain non-IFRS measures.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS, and are therefore
unlikely to be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further
understanding of our results of operations from management's
perspective. Accordingly, these measures should not be considered
in isolation nor as a substitute for analysis of our financial
information reported under IFRS.
The non-IFRS measure used in this news release includes
"Adjusted EBITDA". The Company calculates Adjusted EBITDA as a sum
of net revenue, other income, cost of inventory sold, production
salaries and wages, production supplies and expense, general and
administrative expense, and sales and marketing expense, as
determined by management. Adjusted license fee eliminates 50% of
the fee which is equivalent to the Company's share of the joint
venture company to which the license fee is paid. Adjusted EBITDA
is provided to assist readers in determining the ability of the
Company to generate cash from operations and to cover financial
charges. Management believes that Adjusted EBITDA provides useful
information to investors as it is an important indicator of an
issuer's ability to generate liquidity through cash flow from
operating activities and equity accounted investees. Adjusted
EBITDA is also used by investors and analysts for assessing
financial performance and for the purpose of valuing an issuer,
including calculating financial and leverage ratios. The most
directly comparable financial measure that is disclosed in the
financial statements of the Company to which the non-IFRS measure
relates is income (loss) from operations.
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version on businesswire.com: https://www.businesswire.com/news/home/20240425476533/en/
INVESTOR CONTACT Anthony Simone Phone: 416-881-5154 Email:
ir@indiva.com
Niel Marotta, Chief Executive Officer Phone: 613-883-8541 Email:
contact@indiva.ca
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