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Bullboard - Stock Discussion Forum Indiva Ltd V.NDVA.H

Alternate Symbol(s):  NDVAF

Indiva Limited, through its indirect wholly owned subsidiary, Indiva Inc., is a Canada-based producer of cannabis servicing the medical and recreational markets. The Company is engaged in producing and selling cannabis products. It focuses on the production and processing of edible and extract cannabis products as well as packaging of edibles and extracts. Its brands include Pearls by Gron... see more

TSXV:NDVA.H - Post Discussion

Indiva Ltd > NDVA Hits Another New 52-Week Low of C$ 0.03
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Post by davgro on Jun 07, 2023 3:22pm

NDVA Hits Another New 52-Week Low of C$ 0.03

Rumour on the street is that Indiva was suffering cashflow issues and having trouble paying Wana royalties which necessitated the sale of 20% of the company to WEED at bargain basement pricing.  These same rumours mention that manufacturing issues with the new equipment still exist.  It appears that the market is acting on these rumours even if they may be unfounded.
 
I suspect that the company will eventually be purchased in its entirety by Canopy for pennies or be forced into CCAA protection.  This is dead money as anticipated changes in Federal edible concentration regulation doesn't seem to be on the current government's radar and company cash burn will continue over the coming quarters if cashflow remains negative.
 
Be cautious if you are considering starting a new NDVA position or adding to your current holdings.  Dumpster 340 will continue to try and convince you what a bargain NDVA is at the current price since he is holding a huge bag of shares he would like you to buy. Keep in mind that the whole pot sector is burning and new 52-week lows are being set everyday.
 
Fire and Flower just filed for CCAA protection and you will see more consolidation and/or CCAA filings in the sector shortly.  Indiva is not immune to the collateral damage happening all around it.
Comment by QCINDIVALUVIN on Jun 07, 2023 5:12pm
Hello Davgro, can you please share where you heard these rumors about Indiva not being able to pay royalties and experiencing issues with current equipment? From what I know, margins are increasing and are expected to trend higher moving forward. Also, Ndva was going to lose Wana anyway in 2 years which is why they made a deal with Canopy to secure Wana manufacturing rights for the next 10 years ...more  
Comment by QCINDIVALUVIN on Jun 07, 2023 5:14pm
Also, cash burn is pretty low and cash balance has stayed the same for about a year and is expected to improve this year. I'd appreciate your input on this. Thanks.
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