Indiva Ltd (OTCMKTS:NDVAF) signed an amended license accord with Bhang Corporation. It replaces the previous license accord entered on April 29, 2018.
Bhang gets a royalty on sales
Both companies agreed to terminate the joint venture agreement. As per the terms of the amended agreement, Indiva will manufacture and sell Bhang products and offer a certain percentage of the sale as a royalty.
Indiva sells THC infused products
The amended license permits Indiva to sell THC infused chocolates exclusively in Canada. Indiva can export chocolates under the non-exclusive right to other nations. According to Indiva, the amended license will benefit both companies.
CEO of Indiva, Niel Marotta, said the company is excited to sign an amended deal with Bhang to manufacture and market Bhang’s cannabis-infused chocolates. Bhang chocolates are well reputed in Canada.
Bhang SKUs is one of the top edible products in Canada within six months of launch. Indiva will use its operational capability to maintain the dominance of Bhang products in the Canadian market. CEO of Bhang, Jamie L. Pearson, said the amended agreement strengthens its ability to operate efficiently and reap rich dividends for both the companies.
Extends maturity of senior secured demand loan
Indiva extended the maturity of its SSDL (senior secured demand loan) to October 31, 2021. The company will remit $73,450 as an extension fee. It can close the loan at an early date without any penal interest.
Indiva expects to post revenues between $2.3 million and $2.8 million in Q2 2020. It is an increase of 1,200% YoY mainly on the backdrop of improved sales of capsules and cannabis 2.0 products.
Indiva has received orders worth more than $750,000 for Wanna Gummies from two western provinces. It expects to win additional orders from other provinces soon. The company added an automated pre-roll line to its London based manufacturing facility to enhance pre-rolls. It helps to achieve annual cost savings of $1 million besides operational efficiency.
Niel said the company is pleased to get the loan extended to next year. He is also excited about the up-gradation of the London facility and the introduction of Wanna Gummies in the market. Its automated pre-roll line helps the company to produce superior quality products quickly and satisfy consumer demand.