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Cannabis edibles producer Indiva Limited (OTCPK:NDVAF) (TSXV:NDVA) is restructuring its business. Indiva Group (Indiva and its subsidiaries) has been granted an order from the Ontario Superior Court of Justice under the Companies Creditors Arrangement Act, to restructure its business and financial affairs.
The company said that it has incurred cumulative losses due to financial underperformance and creditors-related pressure.
After careful consideration of all available alternatives including undertaking a strategic review that was unsuccessful in identifying a suitable acquirer or raising sufficient capital to fund certain liabilities, the board of directors of each member of the Indiva Group determined that it was in the best interest of the Indiva Group and its stakeholders to seek creditor protection under the CCAA.
The initial order provides a stay of proceedings in favor of the Indiva Group, the approval of debtor-in-possession financing and the appointment of PricewaterhouseCoopers Inc. as monitor of the Indiva Group (Indiva and its subsidiaries). In addition, the initial order provides Indiva Group with relief from certain reporting obligations under securities legislation and stock exchange rules.
Bennett Jones LLP is acting as counsel for the Indiva Group in its CCAA proceedings.
The stay of proceedings and DIP Financing will provide the Indiva Group with the time and stability required to consider potential restructuring transactions and maximize the value of its assets for the benefit of its creditors and other stakeholders. This may include the sale of all or substantially all of the business or assets of the Indiva Group through a court-supervised sales process.
The company expects to enter into a transaction with SNDL Inc. (NASDAQ:SNDL), an existing creditor and significant stakeholder of the Indiva Group, to acquire substantially all of the business and assets of the Indiva Group.
The company plans to seek court approval to launch a sale and investment solicitation process for its business and assets in the near term.
Business operations of the Indiva Group will not be interrupted as a result of the CCAA proceedings. The company projects to emerge from creditor protection as a stronger company with a healthier balance sheet.
In addition, Indiva Group also announced that Rachel Goldman resigned from the board of Indiva on June 12, 2024, prior to the board resolving to commence proceedings under the CCAA.
Trading of Indiva's common shares on the TSX Venture Exchange may be halted for a period of time and, as a result of having filed for protection under the CCAA, Indiva may be suspended or delisted by the TSXV.
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