Ontario licensed producer INIDIVA Ltd. is one of the most innovative small to mid-cap companies currently awaiting recreational cannabis legalization in the second half of 2018. INDIVA Ltd. is traded on the TSXv under the symbol NDVA, and has been expanding its scope of operations as it prepares to open for business.
INDIVA Ltd. is focused on client care, delivering a high-quality standardized product and maintaining a designed diversity throughout its product offerings. To achieve this goal, the company works hard to be financially and environmentally sustainable, owning or having control over all its ventures. This means owning their production and processing facilities in London, Ontario, while gaining exclusive rights through their partnership agreements. Looking at the design of their production facilities, it’s easy to see they have been built to provide the company with a platform for sustainable success. State-of-the-art cultivation and processing capabilities, energy efficient climate control, and advancements like the revolutionary Bioroter Composting System, INDIVA Ltd. is sticking to their plan for growth and success.
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INDIVA Ltd. is creating a profitable business that is capable of and ready for rapid growth. The facilities are being expanded to full capacity in 2018, while a number or strategic acquisitions and partnerships have been recently formed. The partnerships provide to access multiple revenue streams that will enable the company to maximize potential revenue streams. INDIVA Ltd. owns all its facilities, and is closely involved in the compassion community through their Master Grower, Pete Young. Mr. Young has been a pillar in the community for decades and currently supplies over a thousand medical cannabis patients with their medicine. Unlike many other similar sized LPs, INDIVA Ltd. is ready to cultivate, process and sell cannabis.
The recent acquisition and partnership agreements with two companies in the cannabis edibles and derivative product market are signals of INDIVA’s intent. This sector is not talked about as much as dried cannabis flowers or concentrates, which is most likely due to the Canadian government not being ready to legalize cannabis edibles at the same time as recreational cannabis. However, INDIVA Ltd. envisions that cannabis edibles will play a major role in global cannabis consumption and once recreational cannabis is legal, edibles will quickly follow suit.
According to Koby Smutylo, COO of INDIVA Ltd. “There are a lot of patients and people who do not wish to smoke cannabis but still want access to its benefits. Cannabis edibles are perfect for this and the market is deficient so far. While cannabis flowers are the backbone of our operations, we anticipate producing and selling cannabis edibles to separate us from the competition. Our partnerships with Bhang and DeepCell are indicative of this and an important aspect of our business plan.”
DeepCell Industries is known for its revolutionary Crystal Fusion™ technology and consumer sugar product Ruby™. The technology allows for cannabinoid extraction through mechanical fusion, instead of the standard chemical fusion. The company has addressed a major roadblock to mass consumer acceptance of cannabis food products, by removing cannabis flavour from the equation while maintaining all the beneficial properties of cannabinoids. This allows for products that range from pancake mixes, teas or coffee to chocolate bars and drink mixes. The technology can also infuse salt in the same way, creating another “flexible edible” infused with cannabinoids. Essentially, any food item or beverage can now be cannabis infused without altering the taste. INDIVA Ltd. has procured an exclusive license from DeepCell to manufacture, market and sell the complete product line and use the technology. Subject to regulatory approvals, INDIVA will assist DeepCell with product innovations to better provide its cannabis products to Canadian consumers. Also, pending applicable regulatory approval, both companies will also work together to bring DeepCell’s product line to the international market.
The Bhang Corp. deal is the perfect compliment. If you had the means to manufacture revolutionary cannabis edibles, you’d then want a proven method of delivering them to market. Bhang Corp. has made a name for themselves in cannabis edibles, currently licensing chocolate bars, gums, vapes, distillates, beverages and mouth sprays within the USA. INDIVA Ltd. has gained exclusive rights to sell and manufacture in Canada and export branded products internationally.
INDIVA Ltd. has made a statement of intent here, but more importantly they have positioned themselves to be able to sell their cannabis once legalization occurs. The exclusivity agreements provide a distinct competitive advantage for INDIVA Ltd. As the cannabis market continues to expand and cannabis spending already estimated to top $57 billion USD globally, there is a lot of opportunity for an innovative and proactive company like INDIVA Ltd. to flourish.