Ontario-based Indiva Limited (TSX: NDVA) received creditor protection in Canada in the face of mounting debt pressures and other market challenges, the company announced Thursday.
The Ontario Superior Court of Justice granted Indiva an Initial Order under the Companies’ Creditors Arrangement Act, which allows the company to restructure its business and financial affairs while continuing operations.
The Canadian cannabis edibles producer has been grappling with strains that have weighed on its performance. In the first quarter of 2024, Indiva reported a slight increase in gross revenue to C$10.6 million, but its net revenue slipped to C$9.3 million due to higher excise taxes.
The matter is compounded by a C$19.2 million loan from cannabis financier SNDL Inc. (NASDAQ: SNDL) and C$2.5 million in outstanding convertible debentures, according to a June 3 update. Indiva said at the time that it had reached an agreement with SNDL to…
