Indiva Ltd V.NDVA.H

Echelon Partners Downgrades NDVA to Hold

[davgro]

The Globe and Mail reports in its Thursday April 4th edition that Echelon Partners analyst Andrew Semple has downgraded Indiva to "hold" from "speculative buy."

The Globe's David Leeder writes that Mr. Semple is the lone analyst covering the stock. He cut his share target by three cents to 12 cents. While Mr. Semple continues to expect a "solid" 2024 business performance from Indiva, a lack of regulatory reform on edible cannabis products adds "uncertainties" to its investing case. Indiva has retained SSC Advisors as its financial adviser to evaluate "potential strategic alternatives intended to maximize shareholder value, including but not limited to, financing alternatives, a merger, amalgamation, plan of arrangement, consolidation, reorganization or other similar transactions."

He says in a note: "We continue to forecast Indiva navigating through the tough market environment in 2024 and exiting the year in a stronger position. However, recent updates including the Health Canada report failing to recommend an increase in THC limits for edible products, a tough capital markets environment for raising capital, and the commencement of a strategic review at a lower equity valuation increase uncertainties for the year ahead."