Indiva and its subsidiaries have been granted an order from the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act to restructure their business and financial affairs.
Due to, among other things, the fragmentation of the cannabis industry, financial underperformance and pressures resulting from obligations owing to creditors, the Indiva Group has incurred cumulative losses. After careful consideration of all available alternatives including undertaking a strategic review which 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 for, among other things, a stay of proceedings in favour of the Indiva Group, the approval of debtor-in-possession financing ("DIP Financing") and the appointment of PricewaterhouseCoopers Inc. as monitor of the Indiva Group (in such capacity, the "Monitor"). In addition, the Initial Order provides Indiva 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.
In that regard, the Indiva Group intends to seek Court approval to launch a sale and investment solicitation process for its business and assets (the "SISP") in the near term. The SISP is expected to be administered by the Monitor. In connection with the SISP, Indiva expects to enter into a transaction with SNDL Inc., an existing creditor and significant stakeholder of the Indiva Group, to acquire substantially all of the business and assets of the Indiva Group (the "Stalking Horse Transaction"). The Stalking Horse Transaction is expected to act as the stalking horse bid in the SISP. Additional details in respect of the SISP and the potential Stalking Horse Transaction will be disclosed when available.
The business operations of the Indiva Group will not be interrupted as a result of the CCAA proceedings. It is expected that the Indiva Group will emerge from creditor protection as a stronger company with a healthier balance sheet.
In addition, Indiva 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 (the "TSXV") 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.
For more information:
Indiva
indiva.com