Investor Presentation - Q1 2021 Focused on Delivering High Quality Cannabis Products to Canadians - INDIVA
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TSXV: NDVA I OTCQX: NDVAF
Investor
Presentation
Q1 2021
Focused on Delivering
High Quality Cannabis
Products to Canadians
Product packaging shown here may differ from what is sold in-store and online
TSXV: NDVA I OTCQX: NDVAF
Forward-
Looking
Statement
The information contained herein,
together with any amendments or
supplements and any other information
that may be furnished by the Company,
includes forward-looking information.
Such information is based on assumptions
as to future events that are inherently
uncertain and subjective. The Company
makes no representation or warranty as
to the attainability of such assumptions,
including the completion of financing
or as to whether future results will occur
as projected. It must be recognized that
the projections of the Company’s future
performance are necessarily subject to
a high degree of uncertainty, that actual
results can be expected to vary from the
results projected and that such variances
may be material and adverse. Prospective
investors are expected to conduct
their own investigation with regard to
the company and its prospects. This
presentation does not constitute an offer
to sell or a solicitation of an offer to buy
any security.
2
TSXV: NDVA I OTCQX: NDVAF
Cannabis edibles leader nationally
#1 Market share nationally at 44%*, driven by leading brands: WanaTM Sour Gummies and Bhang® Chocolate.
Revenue growth accelerating, driven by new SKUs and new product introduction in 2021.
Margin expansion driven by lower input costs.
Distribution in place across eight provinces and two territories
Investment Agreements with Medical Cannabis by Shoppers and CannMart.
Highlights Experienced management team
Leadership team with decades of experience in CPG operations, finance, business development, sales &
marketing, consumer packaged goods, and distribution.
Capitalization**
Basic Shares.. . . . . . . . . . . . . . . . 135.5mm
Warrants. . . . . . . . . . . . . . . . . . . . . . . . 17.8mm
Options. . . . . . . . . . . . . . . . . . . . . . . . . . 8.3mm
Convertible Debenture. . . . . 14.0mm
Fully Diluted Shares
Outstanding. . . . . . . . . . . . . . . . . 175.6mm
Balance sheet**
Cash.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7mm
Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11mm
Management and Insider
Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . 12%
Market Cap. . . . . . . . . . . . . . . . . . . . $73mm
Warrant breakdown:
17.4mm @ $0.40
June-August 2023 expiry
* Market share data from Hifyre
** Pro-forma for closing of strategic
investment by Sundial
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TSXV: NDVA I OTCQX: NDVAF
Fully
Licensed
Production
Facility
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TSXV: NDVA I OTCQX: NDVAF
Net Revenue &
Gross Margins
$8,000,000 35.0%
Revenue growth
$7,000,000 30.0%
driven by:
- New product $6,000,000 25.0%
introduction
- New provincial $5,000,000 20.0%
and medical
agreements $4,000,000 15.0%
- Improved store
$3,000,000 10.0%
penetration
- Increased $2,000,000 5.0%
production of
“2.0” products
$1,000,000 0.0%
- Gross Margins
will continue to $- -5.0%
Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020*
rise due to
lower distillate Net Revenue ($ million) Gross Margin %
costs
*Net Revenue guidance of $6.9 to $7.2 million, as per press release dated January 13, 2021
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TSXV: NDVA I OTCQX: NDVAF
National
Store
Growth
YT NWT
5 stores 5 stores
BC AB SK MB
304 stores 551 stores 55 stores 56 stores
ON QC
354 stores 56 stores
PEI
NB 4 stores
- 1,400+ total stores in Canada (Indiva store penetration > 80%)
20 stores NS
13 stores
- Ontario opening 30 stores per week: 1,000 stores expected by Summer 2021
- Annualized retail market of $3.6 billion at December 2020
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TSXV: NDVA I OTCQX: NDVAF
Edibles Market Share Edibles Category
in Mature Markets Breakdown
CALIFORNIA CALIFORNIA
0.45% 1.44%
17.35% 25%
36.16%
54%
The Case 32.35%
For Edibles 21%
10.61%
Total addressable Flower Concentrate Edibles Gummies Chocolate Other
cannabis market Pre-roll Accessories Other Cannabis
of $7-10 billion in
Canada versus $3
billion today
COLORADO COLORADO
Edibles market 0.26% 1.03%
share likely to 15.44% 24%
mirror mature
markets in the
44.47% 56%
U.S. versus ~5%
category share in 31.00%
Canada today 20%
6.49%
Gummies and
Chocolates make Flower Concentrate Edibles Gummies Chocolate Other
up 90%+ of the Pre-roll Accessories Other Cannabis
edibles category
in Canada Source: BDS Analytics, Deloitte, PBO, Headset
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TSXV: NDVA I OTCQX: NDVAF
Nation Distribution in Canada:
Recreational and Medical Market
RECREATIONAL MEDICAL
MARKET MARKET
PRODUCT
ON QC AB SK NS BC MB NB YK NWT CANADA
Pre-rolls Q1 2021
Flower Q1 2021
Capsules Q1 2021
Chocolate
Wana Q1 2021
Gummies
Ruby Sugar, Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 2021
Jewels
Wana Quick
Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021
(fast onset)
Hash Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021
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TSXV: NDVA I OTCQX: NDVAF
Talented
and
Experienced
Team
F I N A N C E A N D C O R P O R AT E D E V E LO P M E N T MARKETING AND SALES
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Niel Marotta President and CEO, Director, Co-founder Leah Thiel Marketing Director
Managed over $1 billion across several industries. Over 15 years’ experience in cannabis and retail marketing for some of
Involved in capital raises and M&A transactions exceeding $1 billion. Canada’s largest companies including Canopy Growth Corp., Hudson’s
Bay, Sears Canada, and Holt Renfrew.
Jennifer Welsh, CPA Chief Financial Officer
Over 15 years of experience in senior finance roles for TSX and Eric Van Dam Sales Director
TSXV-listed companies in mining and cannabis. Over 16 years of progressive sales leadership, consulting, business
development, distributor management and national account experience
Dave Paterson Chief Commercial Officer in the Cannabis, Beverage, Alcohol and CPG industries including Red Bull,
Over 25 years’ experience in senior marketing and sales roles with various Heineken and General Mills.
consumer focused industries including professional sports, beverage
alcohol and cannabis. Alejandro Vernaza Sales Director
Over 5 years’ cannabis experience in sales and ecommerce with Indiva,
OPERATIONS ADP, and BC Cannamed.
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Rob Carse Chief Operating Officer QUALITY ASSURANCE AND COMPLIANCE
Over 20 years of experience in operations and supply chain management ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
in large consumer packaged goods and food manufacturing. Leslie Tomlenovich Director of Quality Assurance & Regulatory/QAP
Over 15 years’ experience in quality assurance, regulatory and food safety
Melissa Kurek Director of Operations
in the cannabis and food industries. Highly experienced in designing
Over 15 years’ experience in commercializing products in the consumer
and communicating effective food safety controls and quality assurance
packaged goods industry for some of the world’s largest food,
programs to meet consumer, regulatory, and operational needs.
confectionery and beverage companies.
HUMAN RESOURCES
CREATIVE AND BRAND DESIGN ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Sherry Kelly Director of Human Resources
Tom Borowicz Chief Brand Officer
15 years of human resources management experience including strategic
Over 30 years of experience in marketing, branding, print/digital
human resources planning, talent management and leadership.
advertising and design with Fortune 500 companies.
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TSXV: NDVA I OTCQX: NDVAF
Indiva’s
Brands
Indiva delivers cannabis products
that delight consumers with their
quality and creativity. As the
exclusive Canadian manufacturer
and distributor of award-winning
products like Bhang® Chocolate,
Wana Sour Gummies, Ruby®
Cannabis Sugar, Sapphire™
Cannabis Salt and JewelsTM, Indiva
expects to be the national standard
for excellence in edibles.
10TSXV: NDVA I OTCQX: NDVAF
OG KUSH
Hybrid
2 pre-rolls / 2 pré-roulés
Net Weight / Poids Net: 1 g
FLOWER
- Pre-rolls
- Dry flower
- Capsules
High-Quality
Products
At Indiva, our dedication to quality
and innovation is what sets us FLOWER
apart. INDIVA™ products are - Pre-rolls
crafted with care using modern, - Dry flower
environmentally-conscious
techniques. INDIVA™ also
manufactures and distributes,
under licensing agreements,
award-winning cannabis brands
and products in Canada.
EDIBLES
- Gummies
- Launched first
3 SKUs nationally
in Q3 2020
- 4 more flavours
launched in Q4 2020
- 3 Wana Quick
fast-onset SKUs to
launch in Q1 2021
Product packaging shown here may differ from what is sold in-store and online 11TSXV: NDVA I OTCQX: NDVAF
Powered by INDIVATM
EDIBLES
- THC milk chocolate
- THC dark chocolate
- CBD milk chocolate
- 50/50 caramel chocolate
- Peppermint “Ice Milk”
- New flavours coming
Q2 2021
Products
Powered by
INDIVATM
Product packaging shown here may differ from what is sold in-store and online
Powered by INDIVA™ products
represent that very best in quality,
creativity and consistency. Over
the past three years, Indiva has
partnered with award-winning
producers of premium cannabis
products. Through partnerships
and exclusive license
agreements, Indiva marries its Powered by INDIVATM
expertise in production with the
proven recipes and processes of EDIBLES
its partners. - Infused sugar
- Infused salt
- Fruit-based sweet tarts
- launching Q2/Q3 2021
12TSXV: NDVA I OTCQX: NDVAF
Q3 2017 • Expands distribution to six provinces CannMart
• Receives cultivation licence from • Indiva begins manufacturing of edibles • Launches premium flower brand:
Health Canada • Ships pre-rolls to Saskatchewan Artisan Batch
• Ships pre-rolls and flower to Quebec • Announces record revenue for Q2
Q4 2017 2020
• Indiva completes RTO and trades on Q1 2020 • Indiva ships Wana Sour Gummies
TSX Venture Exchange under NDVA • Closes $3.1 million convertible • Indiva attains #1 market share in edibles
debenture financing in Ontario at 28.8%
Q1 2018
• Ships pre-rolls to Alberta
• Facility expansion to 40,000 square feet
• Closes $1.5 million convertible Q4 2020
begins
debenture financing with W. Brett • Indiva pre-announces record quaterly
Q2 2018 Wilson net revenue range of $2.8 to $3.1 million
• Indiva and Bhang create manufacturing • Receives sales licence for extracts and for Q3 2020 and record monthly net
and distribution joint venture edibles revenue for September 2020
• Indiva enters exclusive licence agreement • Begins distribution of edibles and • Indiva secures agreement to supply
with DeepCell Industries extracts cannabis products to Medical Cannabis
• Closes $8.1 million white-label agreement by Shoppers
Delivering Q3 2018
• Receives sales licence from Health
with Dycar Pharmaceuticals Ltd.
• Launches CannSell education module
• Indiva reports record quarterly revenue
in 2020 and guides to record Q4
Results to Canada
• Indiva begins trading on the OTCQX
• Begins distribution of products to
Manitoba
revenue
under NDVAF
Shareholders Q1 2019
• Signs license agreement with Wana
Brands
Q1 2021
• Indiva expands national market share in
edibles category to 42%
• Announces agreement with Ontario Q2 2020 • Indiva pre-announces record quaterly
Cannabis Store (OCS) and sales begin • Bhang Chocolate is #1 selling edible in net revenue range of $6.9 to $7.2
• Indiva acquires licensed facility and land Ontario million for Q4 2020
• Facility fully licensed as Indiva receives • Indiva announces record market
Q2 2019
amendment from Health Canada share of 44% nationally in the edibles
• Pre-rolls available in licensed stores
• Begins distribution to British Columbia category for January 2021
• Receives licence amendment and adds
• Announces Q1 2020 record revenue • Indiva closes $22 million strategic
additional processing rooms and three
of $2.0 million representing 522% investment by Sundial
flower rooms
sequential net revenue growth • Indiva and Wana extend license
Q3 2019 • Launches CBD chocolate and CBD agreement for up to 20 years
• Announces supply agreement with softgels
Société québécoise du cannabis
Q3 2020
(SQDC)
• Indiva signs Yukon Supply Agreement
• Signs agreement to provide extraction
• Closed first tranche of equity financing
services to TerrAscend
• Announced Q2 2020 revenue
guidance of $2.3 to $2.8 million
Q4 2019
• Closes non-dilutive $11 million debt • Received $1.1 million of purchase orders
for Wana Gummies
financing*
• Senior debt maturity extended to
• Receives licence amendment to
October 2021
double flower capacity and open new
• Closes $5.17 million equity placement
processing space for pre-roll and
• Signs distribution agreement with
edibles production
13TSXV: NDVA I OTCQX: NDVAF
INVESTOR RELATIONS CONTACT INFORMATION
Niel Marotta, President & CEO
T: 519-649-6686 • E: niel@indiva.com
Anthony Simone, Investor Relations
T: 416-881-5154 • E: IR@indiva.com
www.indiva.com
@indivalife
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