Replies to post #297 on Indiva Limited (NDVAF)

[FUNMAN]

They're thinking about making people think they are bigger than they are now.

[FUNMAN]

Comments too: INDIVA REPORTS FIRST QUARTER FISCAL 2021 RESULTS

IMO, this little puppy is cruising in it's own, growing niche, and is the force behind the edibles category growth in Canada. - FUNMAN

Indiva Achieves Record Market Share in April 2021

LONDON, Ontario – June 1, 2021: Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the first quarter of fiscal 2021 ended March 31, 2021.

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 Months Ended March 31, 2021, and the Company’s Condensed Consolidated Interim Financial Statements for the Three Months Ended March 31, 2021 and 2020, which are filed on SEDAR and available on the Company’s website, www.indiva.com.

“We are pleased to report continued growth in our business, strength in retail sell-through, improvement in market share and a tripling of our net revenue year-over-year.

On a sequential basis, the first quarter of 2021 presented temporary challenges resulting from seasonality and provincial lockdowns, coupled with a very difficult comparison against strong sell-in of new Wana Sour Gummies products in Q4 2020; however Indiva ended the quarter with record net monthly revenue in the month of March 2021,” said Niel Marotta, President and Chief Executive Officer of Indiva.

“Looking forward to Q2 2021, the Company expects to resume sequential growth in quarterly net revenue to record levels, given the receipt of record purchase orders to date, and we expect to see continued improvement in gross margins.

New products introduced in late Q1 and early Q2, including three new Wana Quick SKUs and two new Bhang Chocolate SKUs, have been well received across Canada, and data continues to indicate that Indiva is expanding its leading market share in the edibles category. We are very excited about the Company’s growth prospects for the balance of fiscal year 2021.”



HIGHLIGHTS

Quarterly Performance

* Gross revenue in Q1 2021 was $6.87 million representing a 203% increase year-over-year from Q1 2020, and a 10.5% sequential decrease from Q4 2020.

This is because of the reasons stated above, but left out would be natural retail seasonality due to the normal Christmas shopping season. - FUNMAN

* Net revenue in Q1 2021 was $6.22 million representing a 209% increase year-over-year from Q1 2020, and an 11.8% sequential decrease from Q4 2020, and driven primarily by sales of category leading edibles, including Wana Sour Gummies and Bhang Chocolate.

* Net revenue from edible products grew to $5.53 million, up 243% from $1.61 million in the prior year period and down slightly from record levels of $5.92 million in Q4 2020. Edible product sales represent 89% of net revenue in Q1 2021.

* Gross profit before fair value adjustments and impairments, improved sequentially and year-over-year to a record $1.18 million, and increased to 19.0% of net revenue versus 2.4% in Q1 2020 and 12.3% in Q4 2020.

The improvement in gross margin resulted from the Company beginning to benefit from the lower cost distillate used in production, with the majority of the benefit yet to be realized. The Company expects gross margins to continue to improve in Q2 2021, as the Company continues to benefit from substantially lower distillate costs.

* Impairment charges in the quarter totaled $0.8 million, including the disposal of product that did not meet the Company’s quality standards, disposal of aged inventory and write-downs in the quarter.

* Operating expenses in the quarter decreased by 12.5% to $2.22 million, versus Q4 2020 and increased by 40.2% versus Q1 2020, primarily due to higher marketing and sales commissions, offset by lower administrative costs. The Company expects operating expenses to decline as a percentage of net revenue as the year progresses.

* Comprehensive net loss included one-time expenses and non-cash charges totaling $1.53 million. Excluding these charges, comprehensive loss in the quarter declined to $1.49 million versus a loss of $1.84 million in Q1 2020.

* Cash balance stood at $7.1 million at March 31, 2021.


April 2021 Market Share Hits New Record

* In April 2021, according to Ontario Cannabis Store (“OCS“) data, Indiva broke into the top 10 in overall market share, ranking 9th amongst Licenced Cannabis Producers in Ontario, across all categories.

* Sell through data from Hifyre for the month of April 2021 shows strong sales of Indiva edible products. With a 48% share of sales, up from 46% in the month of March 2021, Indiva continues to expand its lead in the #1 market share position in the edibles category. Market share increased in April across all provinces:

* Ontario #1 with 47% market share. Note: OCS data put Indiva market share in the Edibles category at 45.2% for April, an increase from 44.6% in March.

* Alberta #1 with 52% market share.

* British Columbia #1 with 50% market share.

* Saskatchewan #1 with 29% market share.

* Manitoba #1 with 51% market share.

* Wana Sour Gummies led the edibles category with 36% category share.
Bhang® led the chocolate category, with Bhang® Milk Chocolate remaining the top selling chocolate edible SKU nationally.

* Product ranking in April 2021 showed the top five SKUs are Wana™ Sour Gummies (led by Strawberry-Lemonade) and seven of the Top 10 SKUs are from Indiva.

* Based on Hifyre data from British Columbia, Alberta, Ontario and Saskatchewan, the edibles category improved in April 2021 to a record $11.04 million in retail sales versus $5.0 million in April 2020, and $10.7 million in March 2021.

IMO this is huge because it indicates the consumer demand for edibles is growing. More over, Indiva is capturing in some cases, 50% +/- of each provinces market share. That might indicate that Indiva is driving the edibles market growth with products consumers want. - FUNMAN

* Turning to OCS data, the edibles category in Ontario declined slightly from March 2021, to $3.5 million in April 2021.

* Headset data for April 2021 showed eight of the top nine edible products in Ontario were Indiva products.

* The Company will address the balance of Q2 market share in conjunction with the release of its Q2 financial results.


Operational Highlights for the First Quarter Fiscal 2021

* The Company closed a $22 million debt and equity placement with Sundial Growers Inc. on February 23, 2021.

* Six “Always Available” SKUs from Indiva became available on the OCS, including three Bhang Chocolate SKUs and three Wana Sour Gummies SKUs.

* Indiva announced an extension to its license agreement with Wana Brands Inc. The amended agreement will be for a five year term, and may be extended for three additional five year terms. Indiva will continue to have the exclusive right to produce and distribute Wana products in Canada.

* Indiva expanded its distribution to nine provinces and two territories, adding a supply agreement with the province of Newfoundland, and a distribution platform in the Northwest Territories.

* Indiva products became available for purchase through Medical Cannabis by Shoppers™. Indiva also entered into an agreement to supply AbbaMedix with Indiva cannabis products.

* Indiva introduced three additional gummie SKUs nationally under the Wana Quick brand in March 2021, including Pineapple Coconut, Orchard Peach and Strawberry-Lime flavours. These products are currently available in six provinces and one territory.

* Indiva introduced additional strains under the Artisan Batch brand including D. Bubba from Canandia, which sold out very quickly in Ontario.

* Indiva strengthened its board of directors with the addition of Mr. Russell Wilson to the Company’s board.


Events Subsequent to Quarter End

* Indiva introduced two new Bhang chocolate flavours nationally in Q2 2021: Bhang Cookies & Cream and Bhang Mocha Caramel. Both SKUs are currently available in stores across Canada including BC, Alberta, Ontario and Saskatchewan as well as in the Yukon.

* Indiva introduced new high-potency, craft grown cultivars to the Canadian market under its Artisan Batch brand.


Outlook

* Purchase orders received to date in the second quarter of 2021 have shown solid increases, and the Company expects a resumption in sequential net revenue growth to record levels in Q2 2021.

* The Company continued to work through finished goods containing expensive distillate in Q1, and expects further margin improvement in Q2 2021 as a result of lower distillate costs.

* Indiva intends to introduce Ruby Jewel chewable tablets, as well as Ruby Sugar in the second half of 2021.

* Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand. Artisan Batch puts special focus on bringing Canadians the best dry flower from craft-growers. Special attention is paid to high THC potency, robust terpene content, premium buds and fresh harvest dates.

See the PR financial numbers here:

https://www.indiva.com/press-releases/releases-2021/indiva-reports-first-quarter-fiscal-2021-results/

See the MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ("MD&A") at this link:

https://www.indiva.com/media/INDIVA-Management-Discussion-and-Analysis-2021-Q1.pdf

[FUNMAN]

Will Sundial Growers' Wheeling and Dealing Pay Off?

There could be plenty of deals still to come.

By: David Jagielski

https://www.fool.com/investing/2021/06/02/will-sundial-growers-wheeling-and-dealing-pay-off/

Jun 2, 2021 at 6:25AM

Sundial Growers (NASDAQ:SNDL) owes a lot to retail investors. If not for the stock's sudden and unexpected surge in value earlier this year, the company would not have been able to take advantage of its inflated share price when it decided to undergo not one, but two, offerings shortly afterward. Management's quick actions could pay off for the business in the long haul.

In recent months Sundial has been active on the M&A front, investing in other cannabis businesses. But are those moves good ones, and do they make the pot stock a more attractive buy today?

The company has been busy

The way that Sundial has been wheeling and dealing over the past few months, investors might think it's Black Friday on the markets. Here are all the deals the company has announced since February:

It made a strategic investment of 22 million Canadian dollars in Indiva, which makes edible cannabis products. In addition to buying shares of the company, Sundial will also provide Indiva with a term loan facility.
It created a joint venture, SunStream Bancorp, with SAF Group. The venture, which is split 50-50 between the two entities, will look at potential investment opportunities in the cannabis industry, both globally and within Canada, including possible SPACs. Sundial initially invested CA$100 million in March, and increased that to CA$188 million just a month later.

It acquired shares of Valens for just under CA$2 million. Together with its previous purchases, Sundial now owns more than 10% of the business. Valens is a cannabis extraction company that has generated CA$72 million in revenue over the trailing 12 months.

Its most recent acquisition was on May 5, when Sundial announced it would acquire all of the shares of cannabis retailer Inner Spirit in a cash-and-stock deal worth CA$131 million. Inner Spirit has 86 stores across Canada and plans to hit 100 as early as this summer. Last year the company reported CA$27 million in revenue.

That's a lot of activity in a short period. The cannabis producer is certainly diversifying its operations, while also making investments in other businesses. For a company that generated just CA$11.7 million in gross revenue in its first-quarter results for the period ending March 31 (for a year-over-year decline of 29%), these additional investments will give Sundial more opportunities to pad its struggling top line.

What I like in particular is its investment in Indiva, which could expand its product offerings. And its acquisition of Inner Spirit should complement its shift in strategy away from wholesale and toward branded sales. Sundial was strategic with its moves, and didn't blow all of its money on one big acquisition, leaving plenty of options on the table moving forward.

Sundial is still sitting on lots of cash

Although the company has been busy investing its money, investors shouldn't be surprised if it continues making more moves. Sundial reported that as of May 7, its unrestricted cash balance totaled CA$752.7 million. That's higher than the CA$719 million it reported on March 15, and more than 12 times the CA$60.4 million it had at the end of 2020.

What's great for investors is that the company isn't burning through all of its cash, so that money can provide stability for the business. In its most recent quarter, Sundial used up CA$34.4 million on its day-to-day operating activities. If it maintains that pace, its cash (assuming there are no other investments or acquisitions) should last for more than 21 quarters.

Should you invest in Sundial Growers?

There are many reasons Sundial looks like it may be a bad buy: The business isn't growing, it has incurred net losses of CA$330 million over the past four quarters, and it is spending most of its money on acquisitions rather than its core operations. But with a stockpile of cash and plenty of opportunities to grow its business through these new deals, none of those reasons should deter investors. I think Sundial is in the midst of a turnaround, and may look drastically different a year from now. And that's what likely has many investors excited about the pot stock, as it is expanding and making strategic moves that could put it in much better shape in the not-too-distant future.

However, I wouldn't invest in the company just yet -- I am curious what it will do with all these moving pieces and how well they fit into its overall strategy. While at first glance the business looks like it may be on the right path, it's far too early to tell right now. I'd definitely keep a close eye on Sundial, but I wouldn't pull the trigger and buy its stock just yet.

[FUNMAN]

Indiva Limited to Webcast Live at VirtualInvestorConferences.com June 29th

(PRNewsfoto/VirtualInvestorConferences.com)
NEWS PROVIDED BY

VirtualInvestorConferences.com
Jun 24, 2021, 08:35 ET

https://www.prnewswire.com/news-releases/indiva-limited-to-webcast-live-at-virtualinvestorconferencescom-june-29th-301319012.html

LONDON, ON, June 24, 2021 /PRNewswire/ -- Indiva Limited (the "Company" or "Indiva") (TSXV: NDVA) (OTCQX: NDVAF), the leading Canadian producer of cannabis edibles, is pleased to announce that it will present live at VirtualInvestorConferences.com on June 29th. The Company invites individual and institutional investors, as well as advisors and analysts, to attend the real-time, interactive presentations on VirtualInvestorConferences.com.

DATE: Tuesday, June 29th

TIME: 2:30pm EST

LINK: https://bit.ly/34Tj6je

This will be a live, interactive online event where investors are invited to ask the company questions in real-time. If attendees are not able to join the event live on the day of the conference, an archived webcast will also be made available after the event.

It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates.

Learn more about the event at www.virtualinvestorconferences.com.

Recent Company Highlights

Indiva Limited is the leading edibles producer in Canada with greater than 50% market share in the edible category in May 2021, driven by sales of Wana™ Sour Gummies and Bhang® Chocolate.

Wana™ Sour Gummies and Bhang® Chocolate lead their respective subcategories nationally.

Long-term, exclusive, licensing agreements in place with award-winning brands including Wana and Bhang.

Indiva is ranked 11th in market share across all categories as per Hifyre data in May 2021.

COVID-19

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.

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, Wana Quick, 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 onLinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

About Virtual Investor Conferences®

Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors. A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group's suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.

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.

SOURCE VirtualInvestorConferences.com