Indiva Limited Granted CCAA Order for Business Restructuring and Financial Affairs

Indiva Limited, a prominent cannabis edibles producer based in Ontario, has made headlines with its recent announcement of filing for creditor protection under the Companies Creditors Arrangement Act (CCAA). This move comes after the company extended its liabilities with major investor SNDL and repaid a portion of its strategic investment.

SNDL, a key investor in Indiva, could potentially take over the business through a stalking horse transaction as Indiva faces a net loss of $1.8 million. The decision to seek creditor protection allows Indiva to restructure its business and financial affairs, with the approval of debtor-in-possession financing and the appointment of PricewaterhouseCoopers Inc. as monitor.

The company plans to explore potential restructuring transactions and maximize the value of its assets for the benefit of creditors and stakeholders. This could involve the sale of all or substantially all of Indiva’s business or assets through a court-supervised process. Additionally, Indiva intends to launch a sale and investment solicitation process for its business and assets, with SNDL Inc. potentially acquiring them through the stalking horse transaction.

Indiva, known for its diverse range of cannabis edibles and extracts in the Canadian market, has products such as Pearls by Grön, Bhang Chocolate, and No Future Gummies and Vapes. SNDL, on the other hand, reported its first profitable quarter for cannabis production earlier this year but faced increased losses in its retail cannabis holdings.

The cannabis industry has seen SNDL invest in various companies, with recent allegations against Manitoba-based Delta9 Cannabis for defaulting on a financing agreement. Despite the challenges, Indiva and SNDL continue to navigate the evolving landscape of the cannabis market, with potential opportunities for growth and restructuring on the horizon.