Indiva Limited

Climate Impact & Sustainability Data (2020, 2022, 2023)

COVID-19 pandemic impacting operations, customer demand, supply chain, staffing, and regulatory backlog.
Reliance on a single licensed facility (Indiva Facility) for production, making it vulnerable to various hazards.
Competition from other licensed producers and the illicit market.
Regulatory risks and changes in laws and guidelines.
Rising energy costs.
Product liability risks.
Product recalls and obsolescence.
Inventory shelf life.
Financing requirements for ongoing operations and expansion.
Onerous contract with Dycar Pharmaceuticals.
Management of growth and integration of acquired businesses.
Protection of intellectual property.
Conflicts of interest.
Limited operating history and history of net losses.
Unfavorable publicity or consumer perception.
Reliance on third-party transportation services.
Risks related to the U.S. regulatory system and compliance with TSXV Bulletin.
Security risks, including theft and privacy breaches.
Illicit supply of cannabis.
Global economic risks.

Implemented procedures and protocols at its production facility and offices to mitigate COVID-19 risks.
Expanded production facility to 40,000 square feet.
Entered into supply agreements with additional provinces and added new products.
Developed processing and service arrangements.
Secured a strategic investment from Sundial Growers Inc. to settle outstanding debt and provide additional liquidity.
Implemented measures to manage growth and improve operational and financial systems.
Maintained insurance to protect assets, operations, and employees.
Amended the Dycar Agreement to extend timelines and adjust payment terms.
Continuously monitoring and responding to the evolving regulatory landscape.

Competitive pricing pressure in the flower category.
Improper classification of lozenges by Health Canada, resulting in a production pause.

Winding down the Artisan Batch brand to focus on edibles and extracts.
Consulting with advisors and considering next steps for lozenges, potentially including alternative packaging formats.

Health Canada reclassified certain lozenges as 'edibles' instead of 'extracts', halting production.
Termination of Dime Manufacturing and Licensing Agreement on January 16, 2024.
Negative cash flow from operating activities.
Negative working capital.
Accumulated deficit.
Need to raise additional financing.

Paused production of affected lozenges, consulting advisors for potential resolution.
Entered into a supply agreement with SNDL for distillate products.
Amended SNDL Loan, extending maturity date to February 24, 2026.
Engaged a financial advisor to evaluate strategic alternatives to maximize shareholder value.