Indiva Limited (TSXV: NDVA) is the latest cannabis operator to obtain creditor protection. The company has been granted an order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act.
PricewaterhouseCoopers Inc has been appointed as monitor in connection with the filing, while Bennett Jones LLP is acting as counsel. The initial order under the filing permits a stay of proceedings against the company, and the approval of debtor in possession financing among other items. Details of the financing, and whom it was provided by, however were not provided.
The company has indicated it intends to launch a sale and investment solicitation process for its business and assets in the near term, with the company expecting to enter into a transaction with SNDL Inc (NASDAQ: SNDL), whom is an existing creditor and large stakeholder of the company. SNDL is expected to provide the stalking horse bid for the company under the sales process.
In making the filing, the company blamed the fragmentation of the cannabis industry, underperformance, and obligations to creditors as the reason for its filing.
READ: Canopy Growth Takes 19.99% Stake In Indiva As Part Of Wana Licensing Deal
The filing notably follows Tweed earlier this month selling off a portion of its interest in the company.
In connection with the filing, the company is expected to be delisted from the TSX Venture.
Indiva Limited last traded at $0.03 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
