Indiva May Be Delayed in Filing Annual Audited Financial Statements
LONDON, ONTARIO, April 23, 2021 – Indiva Limited (“Indiva” or the “Company“) (TSX-V: NDVA) (OTCQX: NDVAF) announced today that it may be delayed in filing its annual audited financial statements for the year ended December 31, 2020 and its related Management’s Discussion and Analysis and Chief Executive Officer and Chief Financial Officer certifications (the “Required Filings“) by the prescribed filing deadline of April 30, 2021.
Although the Company and its auditors continue to work diligently toward completing the Required Filings by the filing deadline, the Company has made an application to the Ontario Securities Commission (the “OSC“) for a management cease trade order (“MCTO“). If the Company has not made the Required Filings on or before April 30, 2021, the MCTO, if granted, would restrict all trading in securities of the Company, whether direct or indirect, by the Chief Executive Officer and Chief Financial Officer of the Company until the default is remedied. There is no guarantee that an MCTO will be granted. If the MCTO is not issued by the OSC, the applicable Canadian securities regulatory authorities could issue a general cease trade order against the Company for failure to file its annual audited financial statements within the prescribed time period.
The Company and its auditors have experienced certain delays in completing year-end accounting and auditing tasks under “work-from-home” mandates as a result of the ongoing COVID-19 pandemic. Indiva is not aware of any specific accounting or audit concerns at this time. Indiva anticipates that, with the potential benefit of additional time and likely no later than May 14, 2021, it will be in a position to complete the Required Filings, including receiving an unqualified audit opinion on the year-end financial statements.
The Company intends to comply with the provisions of the alternative information guidelines as set out in the National Policy 12-203 – Management Cease Trade Orders for as long as it remains in default, including the issuance of bi-weekly default status reports in the form of a news release.
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® Jewels Chewable Tablets, 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.
For further information, please contact:
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 ability to file the Required Filings in the time required, dependence upon regulatory approval and the uncertainty of the OSC granting an MCTO, the failure of third parties to comply with their obligations to the Company or its affiliates, risks related to COVID-19, future operations, future results, 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 obtain and maintain the necessary regulatory and other third parties’ approvals and licensing and other risks associated with regulated entities in the cannabis industry, future sales, the demand for the Company’s products and cannabis products generally and the continued operations of the Company in the ordinary course. 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.