Indiva Ltd V.NDVA

Canopy Deal is Negative for NDVA Shareholders

[davgro]

In my opinion the announced Canopy Growth deal will have a negative impact on the NDVA share price moving forward and I anticipate we will see a new 52-week low as a result.

In essence management just sold 20% of the company at the current highly discounted share price with no premium attached.  In the process they have created significant share dilution by adding 37 million additional shares to the float.

Any additional Wana revenue generated by NDVA through sales of edibles to Canopy will be done at highly discounted wholesale pricing versus the normal high retail margins.

I am having a lot of difficulty finding any positives for NDVA shareholders in this transaction and it appears that the market concurs as the bid is currently sitting at C$0.045 (a new 52-week low).

[TimeBuilder]

AGREE  at first glance with NO researching .in this deal.... Only Time Will Tell  IMO  As our Only very long term Investment ( believer ) in MJ related products....  Thank you for posting & expressing your opinion.. Regards, TimeBuilder.

[nedstar71]

Negative is an understatement.  They just lost retail margins on their biggest product and gave away 20% of the company for just over $2 million? Talk about being bent over. Given the debt is almost 3x the market cap and manufacturing means lower margins and shrinking revenues, is there any value left here?  Sure they have numerous other products and Pearls should continue to climb, but

[caretired1]

I guess the buyers of those shares sold at 3-4.5 cents think differently.  My bet is you get some good return on a 4.5 cent buy over the next 6 months.  The term of the deal with Canopy gives them runway for regualtory change and optionality to get rid of SNDL.  Canopy will write that cheque if they have to.  Nancy at Wana and now Caopy USA is a big Indiva fan.  Thats the