Indiva Reports Record Third Quarter Fiscal Year 2020 Results

Indiva is the National Leader in Edibles

LONDON, Ontario – November 26, 2020:
Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), a leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the third quarter fiscal 2020 ended September 30, 2020. 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 Nine Months Ended September 30, 2020, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2020 and 2019, which are filed on SEDAR and available on the Company’s website,

“We are pleased to report record revenue and significantly improved gross margins in the third quarter of 2020, driven by the introduction of Wana™ Sour Gummies across Canada” said Niel Marotta, President and Chief Executive Officer of Indiva. “Our business has gained considerable momentum and we expect revenue growth to accelerate significantly in fiscal Q4 2020, driven by sales and purchase orders in hand, and continued strong sell through of Indiva products at the retail level. Data from Hifyre indicates that, within the edibles category, Indiva holds leading market share in BC, Alberta, Saskatchewan and Ontario. Fiscal Q4 2020 has already shown significant sequential growth, with October 2020 net revenue exceeding September’s record monthly net revenue of $2.0 million, and gross margin before fair value adjustments approaching 30% in the month. November net revenue is on track to exceed October, based on purchase orders in hand. Gross margin before fair value adjustments is expected to continue to rise, and approach 30% for fiscal Q4 2020. Further significant additional gross margin improvement is expected in Q1 2021, as the Company begins to benefit from sharply lower distillate costs. Indiva’s focus on quality, and specifically on licensing and producing award-winning products is bearing fruit, and we look forward to continuing to provide of-age Canadians with exceptional cannabis products.”



Quarterly Performance

  • Gross revenue in Q3 2020 was $3.42 million representing a 22% sequential increase from Q2 2020, and a 1,600% increase year-over-year from Q3 2019.
  • Net revenue in Q3 2020 was $3.03 million representing a 19% sequential increase from Q2 2020, and a 1,500% increase year-over year from Q3 2019, driven primarily by sales of Cannabis 2.0 products.
  • Net revenue from edible products grew to $2.18 million representing 72% of net revenue in Q3 2020, up 42% from $1.54 million in Q2 2020.
  • Gross margin before fair value adjustments and impairments improved to $0.67 million or 22.2% of net revenue versus nil in Q2 2020 and 14.5% in Q3 2019, due to a shift in product mix to higher margin products and improved operational utilization.
  • Operating expenses decreased by 21% versus Q3 2019 and decreased by 30% versus the nine months ended September 30, 2020, primarily due to improved cost control and capitalization of costs related to production.
  • Comprehensive net loss included one-time expenses and non-cash charges including losses on non-refundable deposits and disposal of equipment totaling $1.27 million. Excluding these charges, comprehensive loss declined to $2.3 million versus $2.6 million in Q3 2019.
  • The Company closed the final tranche of its $5.18 million equity private placement on August 10, 2020.
  • Indiva also announced the extension of the maturity of its senior debt to October 31, 2021. As a result, working capital has substantially improved as compared to June 30, 2020.


Operational Highlights

  • Indiva began commercial production of Wana™ Sour Gummies in August of 2020 and began shipments to provincial wholesalers in September 2020.
  • Wana™ Sour Gummie Sales in fiscal Q3 2020, all of which occurred in the month of September, accounted for $1.23 million or 41% of net revenue in the quarter.
  • Indiva signed a Supply Agreement with the Yukon and began shipment of products.
  • 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 available on CannMart’s B2C distribution channel for their medical customers, as well as Bhang® Chocolate and Wana™ Sour Gummies.
  • Indiva entered into an amended license agreement with Bhang®, replacing the previous JV, giving the Company the exclusive right to manufacture and sell Bhang® THC-infused chocolate products in Canada.
  • Indiva made its first shipments of Artisan Batch premium cannabis to provincial wholesalers.


Events Subsequent to Quarter End

  • Indiva secured an agreement with Medical Cannabis by Shoppers™, a subsidiary of Shoppers Drug Mart Inc. making Bhang® Chocolate and Wana™ Sour Gummies available through the Medical Cannabis by Shoppers™ platform.
  • October monthly net revenue came in at a record $2.3 million, with gross margin before fair value adjustments exceeding 29%.
  • Sell through data from Hifyre for the month of October 2020 shows strong sell-through of Indiva products. With a 32% share of sales, Indiva now leads with the #1 market share position in the edibles category:
    • Ontario #1 with 36% market share.
    • Alberta #1 with 30% market share.
    • British Columbia #1 with 27% market share.
    • Saskatchewan #1 with 37% market share.
    • Wana Sour Gummies led the Gummies category with $1.94M in retail sales or 18% share.
    • Bhang led the chocolate category with $1.22M in retail sales.
    • Product Ranking in October showed the top 3 SKUs are Wana™ Sour Gummies (led by Strawberry-Lemonade) and 5 of the Top 10 SKUs are from Indiva.
  • Indiva began shipments of ICC under the INDIVA™ brand to Saskatchewan, Ontario, Alberta and British Columbia. ICC is a high-potency THC strain with a strong terpene profile.



  • Indiva delivered four additional Wana™ Sour Gummie SKUs to provincial wholesalers across Canada in November 2020, including Pomegranate-Blueberry-Acai (25mg CBD:5mg THC per gummie), Strawberry CBD (10mg CBD:1mg THC per gummie), Blueberry Indica (5mg THC per gummie) and Japanese Citrus Yuzu (10mg CBD:5mg THC per gummie), bringing the total Wana™ SKUs in market to seven. These SKUs offer unique cannabinoid combinations and flavours, and will complement the first three SKUs already in market, being, Mango Sativa (5mg THC per gummie), Watermelon Hybrid (5mg THC per gummie), and Strawberry-Lemonade 1:1 (5mg CBD:5mg THC per gummie).
  • Indiva will introduce Bhang® Ice, a peppermint flavoured chocolate in time for the holidays. Purchase orders are in hand and shipments to provincial wholesalers will begin in early December.
  • Indiva also expects to introduce further flower SKUs, with special focus on high THC potency, robust terpene content, premium buds and fresh harvest dates.



Overarching Financial Data
Operating Expenses
Quarterly Results



Government and private entities are still assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced health and safety protocols in place to protect its employees. The Company continues to assess the customer, supply chain, and staffing implications of COVID-19 and is committed to making continuous adjustments to minimize disruption and impact. Indiva will remain proactive in its response to the pandemic and compliant with any and all provincial and/or federal policy enacted to protect Canadians.



The Company will host a conference call to discuss its results on Thursday, November 26, 2020 at 8:30 am EST. Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID number is 02059103.

A recording of the conference call will be available for replay following the call. To access the recording please dial 416-764-8691 or 1-877-674-6060. The replay ID is 059103#. The recording will remain available until Thursday, December 3, 2020.



About Indiva

Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible products and provides production and manufacturing services 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™ products through license agreements and partnerships. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.



Investor Contact
Anthony Simone
Phone: 416-881-5154
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 contents of this press release 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 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 maintain 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.


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