Indiva Reports Third Quarter Fiscal 2019 Results

Published: December 3, 2019

Indiva Reports Third Quarter Fiscal 2019 Results

Indiva Limited announced its financial and operating results for the third quarter ending September 30, 2019. 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 Month Periods Ended  September 30, 2019, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Nine Month Periods Ended September 30, 2019 and 2018, which are filed on SEDAR and available on the Company’s website


  • Net revenues were $185,539 in Q3 2019 versus nil in Q3 2018. Total revenue for nine months ended September 30, 2019, equaled $600,408.
  • Gross margin, before fair value adjustments, was $26,816, which was slightly down from the prior quarter of $46,286 due to higher input costs.
  • Net loss increased from $2.3 million in Q2 2019 to $2.6 million. The increased losses resulted from higher operating expenses as the business grew in anticipation of the Company’s launch of derivatives, including extract and edible products.
  • Total assets increased to $31.0 million from $30.2 million from Q2 2019.
  • Inventory increased significantly from $1.7 million at Q2 2019 to $4.6 million. This increase resulted from Indiva preparing to deliver edible products upon receipt of its edibles, extracts and topicals sales amendment.
  • On July 24, 2019, Indiva announced that it received approval to distribute dry flower, pre-rolls and capsules to Quebec.
  • On August 7, 2019, Indiva announced that it entered into a definitive agreement to provide extraction services to TerrAscend. Under the terms of the agreement, TerrAscend committed to providing a minimum of 800 kg per year of dry flower to Indiva for extraction.


  • On October 15, 2019, Indiva completed a debt financing with an institutional lender consisting of a $7.5 million secured bridge loan facility and a $6.5 million secured demand loan facility, for aggregate debt financing in an amount up to $11 million. Indiva may repay the demand loan at any time without penalty.
  • On October 21, 2019, Indiva announced that it had received approval for its phase three expansion amendment. This expansion added 10,000 square feet of production space, including three new grow rooms and two additional processing rooms. The additional processing rooms are currently operational and are dedicated to edible and pre-roll production.
  • On October 22, 2019, Indiva announced that it would manufacture and distribute pre-rolls for The Supreme Cannabis Company Inc.’s portfolio of brands. The Company expects that Indiva-crafted pre-rolls will be available for shipment by December 2019 and will be reflected in Q4 2019 revenue.
  • To date, Indiva has secured product distribution with six provinces including OntarioQuebecBritish ColumbiaAlbertaNova Scotia and Saskatchewan.
  • In late October 2019, the Company began production of its cannabis-infused milk and dark chocolate. It reached commercial scale at the end of November 2019. Stability testing has shown very consistent dosing from package-to-package as well as intra-package.
  • Subsequent to Q3 2019, the Company submitted its phase four amendment to Health Canada to licence the final phase of its facility. Upon receipt of the amendment, the entire facility in London, Ontario, will be licensed apart from the carved-out space for future on-site retail and education.

“We continued to solidify our foundation in the third quarter of 2019,” Niel Marotta, Indiva’s President and Chief Executive Officer, said. “We are poised for significant revenue growth in 2020. Achieving commercial scale in chocolate production in such a short period of time reflects the strength of our team and our partnerships. With distribution in place across six provinces, Indiva will be able to provide product to over 90% of eligible consumers. Indiva continues to progress through the process of obtaining its sales amendment for extracts, edibles and topicals and looks forward to delivering high-quality, safe and consistent cannabis products to consumers coast-to-coast. Industry experts anticipate that millions of Canadians will try cannabis for the first time as edibles, topicals and extracts become readily available. Indiva has diligently executed its strategy with the focus being on this chapter of Canada’s cannabis story. We are proud to offer those new of-age Canadians truly exceptional and consistent products. Finally, Indiva’s ability to secure $11 million in debt financing, subsequent to quarter-end, is a testament to the experience of our team and confidence in our strategy. We are well positioned to emerge as a leader in 2020 and are proud to enter Cannabis 2.0 with the right infrastructure, leadership and product lines.”