Indiva Ltd V.NDVA.H

RE:Canopy Deal is Negative for NDVA Shareholders

[nedstar71]

davgro wrote: 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.045 (a new 52-week low).

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 Wana was a very big piece of the pie.
The SNDL loan of $19.5? million matures in 9 months.  What would the renewal terms have to be?  I would imagine whatever they are it may spell the end Indiva in its current form, if it's still around by then.  SNDL has a bad habit of ending up owning its debtor's companies, or what's left of them.