As legal value-added cannabis products are about to land in Canada, companies like Indiva Limited (TSXV: NDVA; OTCQX: NDVAF) are shifting their focus towards large scale infused edible production.
Just ahead of the launch of cannabis 2.0, Indiva released Q3 2019 financial reporting for the period ending Sept. 30, 2019.
The quarter saw a large increase in Indiva’s inventory as the company gears up for selling chocolate cannabis products, with a more than 250% bump from $1.7 million in Q2 to $4.6 million in Q3.
Net revenue for the quarter was only $185,539, which was actually a decline from previous months in the wake of delays with regulatory licensing, resulting in a loss of $2.3 million.
Aside from ramping up operations towards new edible products, the quarter saw Indiva ink a deal with TerrAscend to extract oil from a minimum of 800 kg of cannabis per year.
During the three month Q3 period, Indiva additionally gained approval to sell dry flower and capsule products in Quebec.
Discussing the quarterly earnings and the company’s impending focus on launching new product types in the next few months, CEO Niel Marotta commented:
After the quarter ended, Indiva began production in earnest on cannabis-infused chocolate products, which reached scale just last week.
Following the end of the quarter, Indiva secured $11 million in financing to ensure the company won’t run out of cash in the near future during the infused cannabis ramp up. That amount includes a $6.5 million secured demand loan facility that can be repaid at any time without penalty.
In other recent news, Indiva also signed a one-year deal with The Supreme Cannabis Company, Inc. (TSX: FIRE; OTCQX: SPRWF; FRA:53S1) to manufacture and distribute pre-rolled products for various Supreme brands. That deal includes an option to renew after a year and is subject to hitting manufacturing quotas every two weeks.