Indiva Limited (TSXV: NDVA) last night announced it will be conducting another convertible debt financing less than two months after it managed to narrowly secure financing to pay off its previous debenture. The convertible financing is being accompanied by a white-label manufacturing agreement that will see complete payment up front to further capitalize the issuer.
With respect to the white label agreement, Dycar Pharmaceuticals will provide Indiva with a non-dilutive financing to the tune of $3.1 million. In exchange, Indiva will manufacture products on a white label basis for Dycar, with payment being “deducted in kind.” Little detail was provided on exactly what will be produced for Dycar, aside from being identified as “Dycar-branded cannabis products.”
The letter agreement, which is for an unspecified term length, may be renewed for two additional terms at the option of Dycar. The renewal could potentially provide up to an additional $4.5 million in non-dilutive financing for Indiva. The Dycar branded products are expected to commence production in the first quarter of 2020, with funding to occur in mid December 2019.
In terms of the convertible debenture financing announced, Indiva will be conducting a raise for up to $4.0 million, of which certain principals of Dycar are expected to subscribe to for an undisclosed amount. The debentures, which are unsecured and bare an interest rate of 10% per annum, will have a term of 3 years. Each $1,000 unit of the debenture will convert at a price per share of $0.20, with no warrant being assigned.
The convertible debenture financing is expected to close by December 10, 2019.
Indiva Limited last traded at $0.20 on the TSX Venture.
Information for this briefing was found via Sedar and Indiva Limited. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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