INDIVA Limited (the “Company” or “INDIVA“) (TSXV: NDVA) (OTCQX: NDVAF) is pleased to announce the results of its annual general meeting of shareholders (the “Meeting“). At the Meeting, Indiva shareholders approved: (i) the re-election of the seven nominated directors, being Niel Marotta, Andre Lafleche, Hugh Hamish Sutherland, John Marotta, James Yersh, Russell Wilson and Rachel Goldman; (ii) the appointment of Ernst & Young LLP as the Company’s auditors; and, (iii) the adoption of the Company’s amended and restated omnibus incentive plan. The resolutions are fully described in the Management Information Circular dated May 9, 2022 related to the Meeting, which can be found under the Company’s SEDAR profile at www.sedar.com.
The Company has received strong initial orders from the Ontario Cannabis Store (“OCS”) for the load-in and launch of Grön Pearls gummies in Ontario. Initial deliveries of the first four Pearls gummie SKUs will occur in July 2022 and include unique flavours and cannabinoid profiles such as Blue Razzleberry 3:1 CBG:THC, Blackberry Lemonade 1:1:1 CBN:CBD:THC, Pomegranate 4:1 CBD:THC, and Sour Green Apple THC. Each container will contain five sugar-coated sphere-shaped gummies. Deliveries of Pearls to additional provinces is expected to occur in late Q3.
Indiva recently received final confirmation from the OCS for the listing of an additional 25 new SKUs, including five SKUs which will participate in the “Flow-through” program. These additional listings bring Indiva’s OCS listings to a total of 60 SKUs, up from the current level of 35 SKUs. The newly accepted SKUs are across six brands: Indiva Life(including lozenges, cookies and chocolates), Artisan Batch, Grön Pearls (including three SKUs in addition to the initial four Pearls SKUs slated for the July launch described above), Grön Pips, Dime Vapes and Bhang Chocolate. All SKUs are expected to launch in Ontario in September and October 2022, as well as additional provinces beginning in Q3.
The Company also wishes to provide an update to its net revenue guidance provided in its Q1 2022 financial results press release, dated May 19, 2022. Due to delays in deliveries of new products, and delays in provincial delivery appointments, the Company now expects net revenue to decline sequentially from Q1 2022. Excluding the impact of these delays, net revenue would have been higher on a sequential basis, as per the Company’s previous guidance. The Company maintains its guidance for higher sequential and year-over-year net revenue growth in the second half of 2022, driven by new product introductions. The Company also remains on track to begin the commissioning and implementation of automation in processing and packaging at its production facility in London, Ontario in the second half of 2022.
Finally, the Company has recently added two additional medical platforms, one in Ontario and another in the Province of Quebec, for the distribution of products produced by Indiva. The Company will continue to look to add additional medical platforms to its national distribution platform, which covers all 13 provinces and territories in Canada.