Replies to post #330 on Indiva Limited (NDVAF)

[FUNMAN]

Today, right now I would rather own Sundial with the Reddit effect.

Shares Outstanding = 1.9B and they are a money losing gusher.

After soaking their shareholders from survival motivated equity raises, Sundial might just be looking at their salvation as investing in other related cannabis companies that are going to be making money.

Their investment in Valens is already paying off.

$5.95akadawson-m Member Level Thursday, 06/03/21 09:12:02 AM
Re: FUNMAN post# 329 0
Post #
330
of 330
You'd rather own Indiva and not Sundial?

[FUNMAN]

Will Sundial Growers' Wheeling and Dealing Pay Off?

Contributor
David Jagielski The Motley Fool
Published Jun 2, 2021 6:25AM EDT

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

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.

Thankfully that number is just a fraction of Fire & Flower's revenues with fewer stores reporting. I have a position there too. Because of the F&F deal with Couche-Tard, Sundial probably couldn't squeeze in there. Just my opinion. - FUNMAN

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.




David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Valens GroWorks Corp. The Motley Fool recommends Valens GroWorks. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

[FUNMAN]

Edibles taking bigger share. That good news for INDIVA.--->>>Food industry veteran Stephanie Gorecki, VP of Product Development at Cresco Labs, and Cory Rothschild, SVP of Brand Marketing talk about why edibles are the future of the cannabis business with @CrainsChicago


May 21, 2021 03:10 PM


https://www.chicagobusiness.com/marijuanacannabis/why-edibles-are-future-marijuana-business?fbclid=IwAR0Gjkh7Vi_FuXb3pq_8PTg5EHC94uKPfT96SM4eVcngkifyoXEntrJf8Oc


Why edibles are the future of the marijuana business

Chicago, with its deep roots in the food biz, is well positioned to capitalize on the growing popularity of THC-infused snacks.

By: JOHN PLETZ

Food industry veteran Stephanie Gorecki, head of innovation at Cresco Labs on the West Side, says, “For us, it’s a food-formulation process. It’s identical to any mainstream (consumer packaged goods) company.”

At a small food laboratory on the West Side, Chicago's rich history in candymaking is mingling with its new role as a hub of the burgeoning cannabis industry.

That's where food industry veteran Stephanie Gorecki and her colleagues are cooking up candies for their new employer, marijuana company Cresco Labs.

On a recent afternoon, a machine squirted dark-red liquid into flexible molds, turning out nearly 150 gummies to be dusted with powdered sugar. Nearby is a rainbow-colored assortment of gummies that will hit the shelves in time for next month's Pride celebrations.

Cresco and its rivals are developing more edible pot products as existing customers and newbies look for ways to get high other than smoking. Edibles made up about 21 percent of total weed sales last year, trailing smokable "flower" at 51 percent, according to Chicago-based Brightfield Group. But edibles are growing faster. Brightfield expects them to grow 20 percent annually through 2025, compared with 15 percent for flower.

Edibles, which range from chocolates and gummies to hard candies and mints, are critical to projections that the U.S. marijuana industry will more than double to $41 billion in sales by 2026.

"Who doesn't like gummies and chocolates," asks Tom Adams, CEO of Global Go Analytics, a cannabis data and consulting firm in Carmel Valley, Calif. "The world's not making any more smokers. There's a significant portion of users who are not going to inhale."

It's another step in the evolution of cannabis from an illicit backwater to a mainstream consumer-products business. Weed companies are racing to develop new products and brand names while food, alcohol and other consumer-products giants are on the sidelines. For now, established packaged foods companies like Chicago-based Mondelez International, maker of Oreo cookies, Cadbury chocolates and other treats, are still leery of a business that's been legalized by many states but not the federal government.

That buys pot companies time to figure out how to make edibles tasty enough to compete with the candies consumers are used to. To get the flavors right, they're tapping Chicago's deep pool of expertise in candy, food and consumer products. The city has long been a center of candymaking, with names such as Mars, Wrigley and Brach's. Chicago factories produce such sweets as Tootsie Roll, Lemonheads and Snickers.

Gorecki, who leads Cresco's 10-person R&D staff, came from Chicago food ingredient maker Newly Weds Foods. Megan Coffey, a former pastry chef who runs the Cresco's R&D lab, came from Victus Ars, a boutique candy developer in Chicago. Food scientist Adriana Yepez previously worked at energy-bar maker RxBar and Edlong Flavors, a dairy-flavor specialist in Elk Grove Village.

Their lab is at the Hatchery, which rents space to food companies big and small, in Chicago's East Garfield Park neighborhood. The smell of fruit from a batch of gummies hangs in the air of the small test kitchen.

"For us, it's a food-formulation process," Gorecki says. "It's identical to any mainstream (consumer packaged goods) company."

It's as if Willy Wonka won a cannabis license—except there's no weed. State regulations require that THC, the chemical that gives weed its high, stays at Cresco's licensed processing facility in Joliet. So the lab uses a synthetic flavoring that mimics the pungent taste and smell of marijuana.


Hiding or offsetting that distinct flavor takes considerable effort. Turmeric and ginger, lemon balm, chocolate, vanilla and a host of other ingredients help food scientists get the desired colors and tastes. "The fat in cocoa butter is wonderful for masking flavors," Gorecki says. Cresco was an early player in edibles, signing on Chicago pastry chef Mindy Segal for a high-profile line of gummies, chocolates and other treats. Now the company is broadening its product lineup to appeal to different types of users, doubling the number of brands in the past year to eight. The strategy is straight out of the consumer packaged-goods playbook.

"People are using (the products) to relax, to sleep, for wellness and focus," says Cory Rothschild, Cresco's head of marketing, who joined the company from Gatorade, another Chicago consumer brand. "You need more than one brand to address all these needs."

One Cresco offering, Wonder, is aimed at attracting new users, who are going to be key to the long-term growth of the industry as recreational-use markets mature.

"New consumers do prefer edibles significantly more than other categories of cannabis products," says Matt Zehner, an analyst at Brightfield.

To win new customers, companies will have to reassure users whose only experience with edible marijuana was of the DIY variety.

Getting the proper dosage of THC is crucial. In the early days of medical and adult-use marijuana sales, companies focused on giving customers the most bang for their buck. Most products had 10 milligrams of THC. Now they're focusing on entry-level amounts of 1, 2 or 3 milligrams, adopting the mantra of "start low and slow."


The holy grail for weed companies is to make the product more like alcohol, which is why companies such as Cresco and others also are looking at cannabis-infused drinks. Chicago-based Green Thumb Industries making and selling drinks in Illinois from Cann, a California-based company. Curaleaf, which recently acquired Chicago-based Grassroots, launched Select Squeeze, a line of flavored THC concentrates that can be added to water.

"It's about expanding the universe," says Matt Darin, regional president for Wakefield, Mass.-based Curaleaf. "There are millions of residents who don't want to smoke products, and maybe vapes and edibles haven't resonated. A beverage, which everyone is accustomed to, (is) a natural fit."

[FUNMAN]

What’s better than a milkshake on a summer’s day?

https://manage.kmail-lists.com/subscriptions/web-view?a=P6GTmJ&c=LwKGhr&k=254c5adc42de1ba07014969916d17438&m=QTjsqg&r=y9jQGjc

A Bhang Cookies and Cream White Chocolate milkshake??

Milkshakes are perhaps one of the most indulgent summertime treats. A perfect blend of ice cream and milk, topped with anything you can imagine, really. Including cannabis-infused chocolate. Bhang THC Cookies and Cream White Chocolate to be exact.

With 10 mg of THC per bar, you can turn your cannabis experience into something a little more decadent (and a lot more chill). All you need is some Bhang Cookies and Cream (or any of our 7 delicious flavours of Bhang), your favourite flavour of ice cream, and some chocolate sauce.

Get the recipe:

https://www.indiva.com/blog/recipes/bhang-cookies-and-cream-milkshake/

[FUNMAN]

Unnecessary Obstacles for the Canadian Edibles Market

By Steven Burton
June 22, 2021

Can Canada fix the obvious problem? - FUNMAN

https://cannabisindustryjournal.com/feature_article/unnecessary-obstacles-for-the-canadian-edibles-market/

Complex regulatory standards, dosage limits, price disparities and a limited variety of products all hinder the Canadian edibles market and prevent the category from flourishing as it should.

The edible cannabis market in Canada is still green. Delayed by a year from the legalization of dried flower, the edibles and extracts market poses significant opportunities for manufacturers. Edibles and extracts typically have higher profit margins than dried flower (“value-added” products) and consumer demand appears to be high and rising. So, what is causing trouble for cannabis companies trying to break into edibles and extracts? Below are four observations on the market potential of edibles in Canada.

Canada’s Edibles Market: The Numbers

In 2020, Canada – the largest national market in the world for cannabis products – grew more than 60%, largely as a result of the introduction of new products introduced in late 2019, often called “Cannabis 2.0,” which allowed the sale of derivative products like edibles. Deloitte estimates that the Canadian market for edibles and alternative cannabis products is worth $2.7 billion, with about half of that amount taken up by edibles and the rest distributed amongst cannabis-infused beverages, topicals, concentrates, tinctures and capsules. More recently, BDSA forecasts the size of the Canadian edibles market to triple in size by 2025 to about 8% of the total cannabis dollar sales.


Source: BDSA

In December 2020, the Government of Canada reported that edibles made up 20% of total cannabis sales; Statistics Canada data shows that 41.4% of Canadians who reported using cannabis in 2020 consumed edibles. While sales have gone up and down over the course of the COVID-19 pandemic, there are clear indications that there is a substantial demand for edibles and extract products, which can be consumed more discreetly, with greater dosage precision and with fewer adverse effects (as opposed to smoking).

While sales of regulated edibles products continue to grow, edibles, extracts and topicals sales in Canada are facing a similar problem as dried flower sales: inventory growth is outpacing sales. Unsold stock sitting in inventory is growing at a dramatic pace, showing a clear lag in demand for these products on the legal market. How do we understand this contradiction?

1) Complex Regulatory Standards are a Major Barrier

Cannabis edibles compound the already existing problems around the conceptualization of cannabis products regulation. How should it work? Edibles can be considered in any of the following categories:

Cannabis as a pharmaceutical with medical application. Requires strict dosage and packaging requirements;

CBD as a nutraceutical with health benefits claimed. Requires specific nutraceutical regulations be followed;

Food product to be consumed. Must comply with food safety regulations around biological, chemical, physical hazards through a risk-based preventive control program. A full supply chain and ready-to-recall based system of regulatory standards need to be followed.

Incorporating elements from each of these three regulatory regimes into a single regulatory standards body is a confusing logistical and compliance challenge for both the regulators, and the producers and retailers of the product.

In mid-2019, the Government of Canada released the Good Production Practices Guide for Cannabis. This merged cannabis-specific regulations with food safety-specific regulations. Rigorous food safety requirements were combined with equally rigorous cannabis production and processing requirements, resulting in extremely laborious, detailed and specific regulations. These span everything from building design and maintenance, to pest control, to employee sanitation, to traceability – at all levels of the process. Navigating these regulations is a challenge, especially for many smaller producers who lack the necessary resources, like automation technology, to devote to understanding and tracking compliance.

2) Low Dosage Regulations Give an Edge to the Illicit Market
When edibles were legalized, THC dosage was capped at 10mg per package. For more experienced consumers, especially those who are dealing with chronic pain and other medical needs, this limit is far too low – and the unregulated market is more than able to fill this gap.

One analyst from Brightfield pointed out that the dosage restriction, in combination with other regulations, will make it harder for the edibles market to grow in Canada.

It also makes the unregulated market almost impossible to beat.

Barely more than half of cannabis consumers in Canada buy exclusively from government-licensed retailers, while 20% say that they will only buy unregulated products. According to a Deloitte report, 32% of legacy cannabis consumers said that unregulated products were better quality, and 21% reported that they preferred unlicensed products because there were more options available. Almost half of respondents also reported that quality was the biggest factor that would cause them to switch to regulated sources, and 28% said that higher THC content would prompt them to switch.

3) There is a Big Price Disparity between Legal and Illicit Edibles
As a result of dosage requirements and other factors, price per gram of regulated edible product is much higher than that of flower, unregulated edibles and edibles available through regulated medical distributors.

If you take the BC Cannabis Store’s price for Peach Mango Chews as an example: a 2pc package is $5.99. Since the dosage limits at 10mg per package, that’s the equivalent of $0.60/mg or $600/gram. A quick Google search reveals that an easily available edible from a medical cannabis distributor contains 300mg of THC and sells for $19.00, a price of $63.00/gram.

That means that not only is 10mg too low a dose for many users to achieve the result they were looking for, but the dosage restriction also makes the products less attractive from both a nutrition and cost standpoint. Deloitte reportsthat higher prices is the reason that 76% of long-time cannabis consumers continued to purchase from unregulated sources. The regulated industry as a whole is missing its legal market opportunity, where consumers prefer a lower price product with a greater range of dosage availability.

4) The Range of Products Available is Too Limited for Consumers
For most of 2020, chocolate edibles were the dominant product in this category in the Canadian market, garnering 65% of all edibles sales. But is this reflective of consumer wants? Despite a demand for other kinds of edibles like the ever-popular gummies, there are still only a few edible brands that offer the range of products consumers are asking for. According to research from Headset, there are 12 manufacturers in Canada making edibles but only two of them produce gummies. In comparison, 187 brands make gummies in the United States.

While some of this delay is likely due to the long licensing process in Canada and the newness of the market, there are other factors that make it challenging to bring a variety of products to market. The province of Quebec, Canada’s second-largest province, has banned the sale of edibles that resemble candies, confections, or desserts that could be attractive to children – giving yet another edge to unregulated sellers who can also capitalize on illegal marketing that copies from existing candy brands like Maynard’s.

When companies do want to introduce new products or advertise improvements to existing product lines, they are restricted by stringent requirements for packaging and marketing, making it harder to raise brand awareness for their products in both the legal and unregulated markets. Industry players are also complaining about government restrictions on consumers taste-testing products, which further compounds challenges of getting the right products to market.

In the meantime, illicit producers have also shown themselves to be savvy in their strategies to capture consumers. It is not uncommon to find illicit products packaged in extremely convincing counterfeit packaging complete with fake excise stamps. New consumers may assume the product they are purchasing is legal. Availability of delivery options for higher dosage, lower price illicit products is also widespread. All of this adds up to significant competition, even if it were easier to meet regulatory requirements.

Conclusion: Significant Room for Growth Remains Limited by Government Regulations

These four challenges are significant, but there are a number of opportunities that present themselves alongside them. A year and a half into the legalization of edibles, cannabis companies are getting a better picture of what Canadian consumers want and low dosages are proving to be desirable for Canadian consumers in some areas.


Some of the many infused products on the market today

In particular, sales of cannabinoid-infused beverages far outpaced other edibles categories last year, likely tied to the availability of these products in stores over the summer of 2020. BDSA’s research has shown that, in contrast with American consumers, the lower THC dosage for cannabis beverages is an advantage for Canadian consumers. Major alcohol brands like Molson Coors and Constellation Brands are investing heavily in this growing product area – though there the dosage limits also apply to how many products a consumer can buy at a time.

At the same time, the large quantity of unsold cannabis flower sitting in storage also poses an opportunity. While its quality as a smokeable product may have degraded, this biomass can be repurposed into extracts and edibles. Health Canada has also shown some responsiveness to industry needs when it shifted its stance to allow for Modified Atmosphere Packaging (MAP), which will help improve shelf life of products.

While strict regulatory obstacles remain, challenges will continue to outweigh opportunities and the illicit market will remain a strong player in the edibles market. As regulations become clearer and producers become more accustomed to navigating the legal space, barriers to entry into the regulated cannabis market and specifically the extracts and edibles market, will decrease. Meanwhile, those getting into the edibles market will do well to be wary of the challenges ahead.

[FUNMAN]

IMO, this is BS --->>> Indiva Announces Grant of Restricted Share Units

Tue, July 6, 2021, 7:00 AM
4 min read

The growth we are watching is like watching grass grow. Let insiders earn their RSU's based on benchmark performances. - FUNMAN

LONDON, ON, July 6, 2021 /CNW/ - Indiva Limited (the "Company" or "Indiva") (TSXV: NDVA) (OTCQX: NDVAF), the leading Canadian producer of cannabis edibles, is pleased to announce that its Board of Directors has approved the grant of an aggregate of 1,236,112 restricted share units ("RSUs") pursuant to its amended and restated omnibus incentive plan (the "Plan") to certain directors and officers of the Company. 680,557 of the RSUs will vest immediately upon receipt of the final approval of the Plan from the TSX Venture Exchange and 555,555 RSUs will vest over a period of six months from the date of grant. Each vested RSU entitles the holder to receive a cash payment equal to the closing price of the common shares of the Company on the last trading date prior to the vesting date, or at the discretion of the Board of Directors, one common share of the Company or any combination of cash and common shares.

The grant of RSUs and the adoption of the Plan is subject to receipt of the final approval of the TSX Venture Exchange. The aggregate number of common shares of the Company that may be reserved for issuance pursuant to RSUs granted under the Plan is 2,500,000. After this issuance of the RSUs to the directors and officers, there are 1,263,888 RSUs available for future grants under the Plan.

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, 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.

DISCLAIMER & 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 dependence upon regulatory approval, 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.

SOURCE Indiva Limited

Cision
Cision
View original content: http://www.newswire.ca/en/releases/archive/July2021/06/c8894.html

[FUNMAN]

Now Available: Cereal Milk

See it here:

https://manage.kmail-lists.com/subscriptions/web-view?a=P6GTmJ&c=LwKGhr&k=254c5adc42de1ba07014969916d17438&m=WYSTaL&r=zkbFgfF

Artisan Batch presents not one, but two new strains from krft Cannabis for you to experience! Cereal Milk is available now in Ontario, and Unicorn Sherbert is on its way. Get to know each strain before heading to your local retailer.

Cereal Milk isn’t just the best part of breakfast, it’s also a pretty amazing cannabis strain. With creamy berry, fruity citrus, and gassy notes, this strain’s profile is similar to the fruity milk leftover after a bowl of breakfast cereal. krft Cannabis Cereal Milk has 22% THC and 1.64% terpenes, and is a cross between Y Life (Cookies x Cherry Pie) and Snowman.

Artisan Batch Cereal Milk 3.5g jar with lid open and cereal milk bud sticking out

Close up of unicorn sherbert bud on black background

Coming Soon: Unicorn Sherbert

Yes, it’s as magical as it sounds! krft Cannabis Unicorn Sherbert is coming soon to Ontario retailers. This indica-dominant strain has sweet and gassy notes with 20-26% THC and > 3% terpenes. Unicorn Sherbert has dense, frosty buds heavily resinated and covered in dark orange hairs.
Both of these strains will be available in Ontario, so check in with your local retailers to find them near you!


INDIVA Inc. 1050 Hargrieve Road London, Ontario N6E 1P5

[FUNMAN]

Think of this like hitting the jackpot twice

https://manage.kmail-lists.com/subscriptions/web-view?a=P6GTmJ&c=LwKGhr&k=254c5adc42de1ba07014969916d17438&m=TDDFYi&r=AspnnZR

Two Indiva products are being released as 7-pack pre-rolls, and one of them is already available! Our popular Jack Herer and White Russian pre-rolls have been made into 7-packs, which means lucky number seven just struck twice.

Jack Herer 7-pack Pre-Rolls, Now Available

A cross between Northern Lights #5 and Shiva Skunk, Jack Herer is a sativa-dominant hybrid strain with 16-22% THC. It has peppery, piney notes with a hint of citrus zest and is a cult classic among cannabis consumers.

White Russian 7-pack Pre-Rolls, Coming Soon

This sativa-dominant hybrid is a cross between White Widow and AK-47, making its flavour profile fragrant, fruity, sweet, and skunky—in the best possible way. These pre-rolls feature 16-22% THC and burn with a smooth, white ash.


Jack Herer is available through Ontario retailers, so check your local stores today!

[FUNMAN]

This Focused Cannabis Producer Punches Above Its Weight in the Canadian Edibles Market

https://www.newcannabisventures.com/this-focused-cannabis-producer-punches-above-its-weight-in-the-canadian-edibles-market/

September 8, 2021 at 12:56 pm
Exclusive article by Carrie Pallardy

Exclusive Interview with Indiva Co-Founder, CEO and President Niel Marotta

For Indiva (TSXV: NDVA) (OTCQX: NDVAF), this September marks the one-year anniversary of the introduction of Wana Sour Gummies into the Canadian market. Since then, the company has achieved more than 50 percent market share in the gummies category, according to Co-Founder, CEO and President Niel Marotta. Marotta reconnected with New Cannabis Ventures to discuss deepening distribution, new product categories and competing in the Canadian market. The audio of the entire conversation is available at the end of this written summary.

Canadian Operations

Indiva has broad distribution across most of the Canadian market; it has products in nine provinces and two territories. The company is hoping to list products eventually in Prince Edward Island and Nunavut.

When looking at units sold on a monthly basis, Indiva is third, behind only Canopy Growth and Tilray, according to Marotta. The company’s goal is to continue to go deeper into all provinces.

Last year, the company announced an agreement with Medical Cannabis by Shoppers Inc. The agreement comes with the validation of working with an established pharmacy, and it allows Indiva to sell its edibles into the province of Quebec to patients who have prescriptions with Shoppers, according to Marotta. Thus far, distribution through this agreement accounts for less than 5 percent of the company’s revenue, but Marotta expects this could grow significantly as regulations evolve.

The company currently has about 150 employees, most of which are located in London, Ontario. Indiva added a new director, Russell Wilson from Prairie Merchant, last year, and it has fleshed out its team on the sales side. The company is putting more boots on the ground to deepen its coast-to-coast distribution and strengthen its relationship with key accounts.

Consolidation is a hot topic in the cannabis space. Marotta considers Indiva’s stock as significantly undervalued; he doesn’t think the company has the currency to be an aggressive acquirer at this time. But, he does expect that other LPs will be interested in acquiring Indiva. The company has a considerable market share in the edibles space, making it an accretive and complementary option. The company will examine and discuss with its board any offers that do arise.

A New Product Category

Indiva entered the baked goods category with Slow Ride Cookies. Thus far, the edibles category has been relatively small in the Canadian market, with baked goods being a smaller subcategory. But, edibles are relatively new in this market. Looking to more mature U.S. markets, edibles can account for 10 percent or more the market, with baked goods taking 10 to 15 percent of the edibles category, according to Marotta. He hopes that Indiva will grow the baked goods category, as well as its top line.

Indiva Has Entered the Baked Goods Category with Slow Ride Cookies.
While baked goods represent a new category of Indiva, the company does not necessarily want to be in all product categories. Any new areas it does enter will be with brands that the team feels offer something unique. Ultimately, Indiva is focused on being the leader in the categories it does pursue rather than being in every product segment.

CBD Outlook

Indiva is a player in the CBD space. It has launched chocolate, gummy and soft gel CBD products. It is also launching a multipack of Wana gummies in a 10:1 format, allowing for more gummies in a package without violating the 10 mg THC cap. While CBD products are outsold by THC products, Marotta sees an opportunity for innovation and growth in the CBD space.

International Opportunities

The company’s business plan is focused on the Canadian market, but it does keep a watchful eye on international markets. The company does not necessarily envision becoming a direct U.S. play, even with federal legalization, but it would hope to strengthen its relationships with U.S. brands like Wana and Bhang Chocolate. The Indiva team is also considering the demand in European markets.

Investors and Funding

Earlier this year, licensed producer Sundial made a $22 million strategic investment in Indiva. Since making that investment, Sundial closed on the acquisition of Inner Spirit Holdings, which owns the Spiritleaf retail dispensaries in Canada. Having exposure to that retail chain contributes to Indiva’s product distribution.

Indiva ended its second quarter with $3.4 million in cash. The company has $11 million in senior debt outstanding with Sundial, but that is not due for two-and-half years, according to Marotta. He sees Indiva’s funding needs as relatively minor. The company is aiming to be cash-flow-positive before the end of the year or by early next year.

The company’s facility is fully built and fully licensed; Indiva does not need to fund any large CapEx projects. Indiva does intend to allocate some capital to automation, which will ultimately help to reallocate labor and improve on margins.

Indiva’s Facility in London, Ontario Is Fully Built and Licensed.
If Indiva does need to raise more capital at any point, it would result in a solid use of proceeds that creates shareholder value. The team may also look at opportunities to improve the balance sheet in an accretive fashion, according to Marotta. Insiders own more than 10 percent of the company; the team is sensitive to dilution and carefully watches the share price and structure.

The Second Half of 2021

Marotta anticipates that the second half of Indiva’s year will be better than its first. The company has achieved $15.3 million in net revenue thus far, exceeding total net revenue in the fiscal year 2020. In addition to net revenue growth, Marotta expects solid margin improvement in the second half of the year due to the falling price of distillates.

Indiva has achieved its more than 50 percent market share in the gummies space after just one year of having products in the market, and its chocolate market share is around 40 percent, according to Marotta. The company consistently introduces new products with its licensees, helping to drive its market share and revenue.


Indiva Has Captured Approximately 50 Percent Market Share in the Gummy Category.

Many product categories in the Canadian market are crowded, and Marotta anticipates that the competition will only continue to increase. Indiva will defend and aim to grow its market share in Canada with new products in its chosen categories.

While federal legalization in the U.S. is a big topic of conversation, Marotta does not think that the Canadian market is anywhere near played out. He expects there is room for the market to double or triple and room for the edibles category to do the same, which puts Indiva in a position to pursue significant growth as well.

New Cannabis Ventures provides a sponsored Investor Dashboard for Indiva. Listen to the entire interview:

https://soundcloud.com/newcannabisventures/this-focused-cannabis-producer-punches-above-its-weight-in-the-canadian-edibles-market?utm_source=clipboard&utm_campaign=wtshare&utm_medium=widget&utm_content=https%253A%252F%252Fsoundcloud.com%252Fnewcannabisventures%252Fthis-focused-cannabis-producer-punches-above-its-weight-in-the-canadian-edibles-market