Indiva Reports Record Second Quarter Fiscal Year 2020 Outcomes

LONDON, Ontario, Sept. 01, 2020 (GLOBE NEWSWIRE) — Indiva Restricted (the “Organization” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), a major Canadian producer of cannabis edibles and other cannabis merchandise, is pleased to announce its economic and operating final results 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 additional 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 Outcomes 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 a single territory. This quarter also saw the launch of our INDIVA&#x2122 CBD Softgels, as effectively as Bhang® CBD-Dominant Milk Chocolate. Bhang® merchandise continue to be top rated-promoting edibles and higher-velocity SKUs across Canada. We also secured additional than $1.1 million of initial obtain orders to date for Wana&#x2122 Sour Gummies, which are set to be readily available in retailers across the nation in September. With various top rated-tier merchandise each in the marketplace and on their way, we are hunting forward to capitalizing on our accomplishment and earning additional consumers’ loyalty by continuing to present the highest good quality cannabis merchandise to Canadians.”

HIGHLIGHTS

Quarterly Efficiency

  • Gross income in Q2 2020 was $two,826,487 representing a 24.eight% sequential boost from Q1 2020, and a 1273.7% boost year-more than-year from Q2 2019.
  • Net income in Q2 2020 was $two,559,704 representing a 27.1% sequential boost from Q1 2020, and a 1375.three% boost year-more than-year from Q2 2019 driven mainly by sales of Cannabis two. merchandise.
  • The Organization realized $128,900 in tolling income attributable to processing and service arrangements.
  • Gross margin just before fair worth adjustments was $21,478 versus a loss of $(342,531) in Q1 2020, due to expense 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 expenditures decreased by 30.9% versus Q2 2019 and declined 11% sequentially versus Q1 2020 to $1.six million, mainly due to enhanced expense handle and capitalization of expenses associated to production.
  • Bhang® Chocolate sales totaled $1,540,720, net of excise taxes in the quarter.
  • Bhang® Chocolate remained the top rated-promoting chocolate in most important markets.
  • At present, Indiva has distribution agreements in location with eight provinces and a single territory.

Events Subsequent to Quarter Finish

  • Much more than $1.1 million of initial obtain orders have been secured for Wana&#x2122 Sour Gummies.
  • Industrial production of Wana&#x2122 Sour Gummies started, with deliveries of the very first 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&#x2122 CBD Softgels and INDIVA&#x2122 Indica Capsules readily available on CannMart’s B2C distribution channel for their healthcare prospects by the finish of August, with Bhang® Chocolate and Wana&#x2122 Sour Gummies to comply with later in the year.
  • Indiva entered into an amended license agreement with Bhang®, providing the Organization the exclusive suitable to manufacture and sell Bhang® THC-infused chocolate merchandise in Canada, and the non-exclusive suitable to export these merchandise internationally.
  • Indiva produced its very first shipments of Artisan Batch premium cannabis to provincial wholesalers.
  • The Organization identified upwards of $1 million of annual expense savings and efficiencies which will commence to positively effect economic final results 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.
  • Operating capital has substantially enhanced as a outcome of the extension of the senior debt and completion of the equity financing.

Organization Updates and Outlook

Good quality Very first: Indiva started shipments of craft cannabis below 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), obtaining craft and micro-cultivation gardens which pride themselves on the good 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 below the INDIVA&#x2122 brand, representing the very best of Canadian cannabis.

Sweet, Salty, and Sour: Indiva is set to release Ruby® Cannabis Sugar and Sapphire&#x2122 Cannabis Salt as early as Q4 2020, adding to its marketplace-major portfolio of edibles. Ruby® and Sapphire&#x2122 use Crystal Fusion Technologies&#x2122, 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 build a delightful candy. In addition, Indiva will be delivering additional Wana&#x2122 Sour Gummies SKUs, which are vegan and gluten-totally free. Wana&#x2122 gummies lead the United States edibles marketplace in dollars sold. These new merchandise will enable position Indiva as a single of Canada’s most revolutionary cannabis firms.

Major Bhang: Bhang® Chocolate remains the leader in the edibles category in various provinces, and the release of Bhang® Caramel Dark Chocolate THC/CBD 1:1 will enable hold this position in the marketplace. Indiva’s approach to companion with trusted and confirmed brands is backed up by Bhang®’s marketplace-major overall performance.

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

OPERATING AND Economic Outcomes 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 Organization calculates Adjusted EBITDA as a sum of net income, other earnings, expense of inventory sold, production salaries and wages, production supplies and expense, common and administrative expense, and sales and marketing 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 firm to which the license charge is paid. Adjusted EBITDA is offered to help readers in figuring out the potential of the Organization to produce money from operations and to cover economic charges.

Operating Costs

three months ended March 31, 2020 six months ended June 30, 2020
(in thousands of $) 2020 2019 2020 2019
Basic 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
Study and improvement 1.1 49.three two.9 94.7
Share-primarily based compensation 115.five 228.four 111.six 367.
Depreciation of home, plant and gear 61.four 161.7 88.eight 290.four
Amortization of intangible assets .1 7.six .two 19.five
Total operating expenditures 1,586.9 two,298.1 three,379.9 five,513.three

Quarterly Outcomes

(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 )
Fundamental and diluted loss per share (.03 ) (.03 ) (.04 ) (.03 ) (.03 )

COVID-19
Government and private entities are nonetheless assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced wellness and security protocols in location to defend its personnel. The Organization continues to assess the client, 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 defend Canadians.

ABOUT INDIVA

Indiva sets the regular for good quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible merchandise and gives production and manufacturing solutions to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang® Chocolate, Wana&#x2122 Sour Gummies, Ruby® Cannabis Sugar, Sapphire&#x2122 Cannabis Salt, Artisan Batch, and other Powered by INDIVA&#x2122 merchandise 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 come across additional details on the Organization and its merchandise.

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

INVESTOR Get in touch 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.

Specific statements contained in this press release constitute forward-hunting details. These statements relate to future events or future overall performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and equivalent expressions and statements relating to matters that are not historical information are intended to determine forward-hunting details and are primarily based on the parties’ existing belief or assumptions as to the outcome and timing of such future events. Actual future final results may possibly differ materially. In specific, this release includes forward-hunting details relating to the Company’s future operations, future item offerings and compliance with applicable regulations. Many assumptions or components are usually applied in drawing conclusions or producing the forecasts or projections set out in forward-hunting details. These assumptions and components are primarily based on details presently readily available to the parties. The material components and assumptions incorporate the parties getting capable to retain the important regulatory and other third parties’ approvals and licensing and other dangers connected with regulated entities in the cannabis sector. The forward-hunting details contained in this release is produced as of the date hereof and the parties are not obligated to update or revise any forward-hunting details, whether or not as a outcome of new details, future events or otherwise, except as needed by applicable securities laws. Mainly because of the dangers, uncertainties and assumptions contained herein, investors must not location undue reliance on forward hunting details. The foregoing statements expressly qualify any forward-hunting details contained herein.

This press release does not constitute an offer you to sell or a solicitation of an offer you to acquire any of the securities in the United States. The securities have not been and will not be registered below the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may possibly not be provided or sold inside the United States or to U.S. Persons unless registered below 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 possibly constitute a violation of U.S. Securities laws.

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