Indiva Limited Granted Initial Order Under CCAA for Business Restructuring
Indiva Limited, a leading producer of cannabis edibles in Canada, has announced that it has been granted an order from the Ontario Superior Court of Justice to restructure its business and financial affairs under the Companies’ Creditors Arrangement Act (CCAA). The decision comes after the company incurred cumulative losses due to the fragmentation of the cannabis industry, financial underperformance, and pressures from creditors.
The Initial Order provides for a stay of proceedings in favor of the Indiva Group, approval of debtor-in-possession financing, and the appointment of PricewaterhouseCoopers Inc. as the monitor of the Indiva Group. This move will allow the company to consider potential restructuring transactions and maximize the value of its assets for the benefit of its creditors and stakeholders.
In addition, Indiva intends to seek Court approval to launch a sale and investment solicitation process for its business and assets in the near term. The company expects to enter into a transaction with SNDL Inc., an existing creditor and significant stakeholder, to acquire its business and assets. This Stalking Horse Transaction is expected to act as the stalking horse bid in the sales process.
Despite the CCAA proceedings, the business operations of the Indiva Group will not be interrupted, and the company aims to emerge from creditor protection as a stronger entity with a healthier balance sheet. However, trading of Indiva’s common shares on the TSX Venture Exchange may be halted, and the company could be suspended or delisted.
Indiva’s CEO, Niel Marotta, expressed confidence in the restructuring process and emphasized the company’s commitment to maintaining its operations and emerging stronger from the proceedings. For further information about Indiva and the CCAA proceedings, interested parties can contact the Monitor, PricewaterhouseCoopers Inc., or reach out to the company directly.
The news of Indiva’s restructuring under the CCAA has sparked interest and speculation in the cannabis industry, as stakeholders and investors await further developments in the company’s journey towards financial stability and growth.
