- Newly licensed cannabis producer, Indiva (TSXV:NDVA) has reported a sharp rise in revenue, in its first quarterly report of the year
- First quarter net revenue is at C$2.3 million, a 522 per cent increase on last year’s first quarter figures
- The company attributes the increased revenue to its new edibles, extracts and topicals sales licence, which it received early in the quarter
- The increase in sales resulted in a quarterly net loss of $2.44 million, a substantial improvement on a loss of $3.63 million in last year’s same quarter
- Indiva (NDVA) is down 1.49 per cent and is trading at 33 cents per share
Newly licensed cannabis producer, Indiva (TSXV:NDVA) has reported a large increase in its first quarter revenue.
After receiving a its edibles, extracts and topicals sales licence earlier this year, the company has noted a sharp uptick in sales.
Consequently, first quarter net revenue is at C$2.3 million, a 522 per cent increase on last year’s first quarter figures.
The improving sales were reflected in the company’s quarterly net loss of $2.44 million, a substantial improvement on $3.63 million in last year’s same quarter.
Due to the increased distribution network the licence affords, Indiva hopes to add more than 300 new stores in Ontario and British Colombia over the rest of 2020.
However, despite the increase in sales, adjusted earnings dropped by more than a third, to $1.99 million, compared to the previous corresponding period.
Niel Marotta, Indiva’s President and CEO, said the company was pleased to report the improving results.
“With multiple top-tier products in market, we are looking forward to capitalizing on our success and earning more consumers’ loyalty by delivering new, innovative products,” he said.
Turning to the pandemic, Indivia has been operating uninterrupted in recent months under its designation as an essential business. The company has also committed to making customer, supply chain and staffing modifications as the situation continues to progress.
Alongside the results, Indiva has granted 655,000 stock options to its employees at a price of 40 cents a share. The options are valid for five years, with mandatory vesting tranches scheduled over the first three years.
Indiva (NDVA) is down 1.49 per cent and is trading at 33 cents per share at 1:48pm EDT.
