Not for distribution to U.S. Newswire Services or for dissemination in the United States.
Indiva Secures $11 Million in Financing
This additional capital paves the way for Indiva to lead in Cannabis 2.0
LONDON, Ontario – October 15, 2019: 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, said. “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.
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™ 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.
Media Contact
Kate Abernathy
Vice President of Communications
Phone: 613-296-5764
Email: [email protected]
Investor Contact
Steve Low
Investor Relations
Phone: 647-620-5101
Email: [email protected]
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, compliance with applicable regulations, compliance with the terms of the Facility, the Company’s ability to draw on the Facility, and the expected use of proceeds of the Facility. 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.