Indiva Limited (OTCMKTS:NDVAF) has announced its operating and financial results for the second quarter. The company reported a decline in net revenue after reporting $173,500 down from $241,396 in the first quarter.
Sales dropped in Q2
The decline in sales was a result of regulatory delays and timing issues related to product shipment. In the third and fourth quarter, the company will bring capsules, tinctures as well as new strains which with additional licensed capacity will spur revenue growth.
Operating loss narrowed in the quarter due to lower one-time cost related to terminations and lease buyout. Net loss per share in the quarter was $0.03.
The company enhanced its workforce in the quarter anticipation to approval by Health Canada for more cultivation and processing rooms. Currently, the company has four grow rooms, and it expects Health Canada to approve three more fully built rooms. In the third quarter, the company plans to deliver new varieties such as Super Silver Haze.
Once Health Canada approves the company’s application to sell cannabis oils, Indiva will deliver INDIVA capsules and tinctures for the recreational and medical market.
Expansion of production and distribution
At the beginning of this year the company engaged Lucid Lab Group to aid in the designing, construction as well as commissioning of an ethanol-based extraction operation at the London, Ontario facility. Construction of the procession, manufacturing and refinement space is expected to be finalized in Q4 2109. The extractor will process around 70 tonnes of biomass which will result in over 4 million grams of distillate.
The addition of more grow rooms will increase the output of dry flower by over 1,000 kg. Two of the three grow rooms were populated at the end of the quarter and the other at the beginning of July. The company expects to harvest from the rooms in the third quarter.
In July the company announced that it had received approval to distribute dry flower, capsules, and pre-rolls in Quebec. This will give the company access to over 17 million potential customers. Last month the company announced the signing of a definitive agreement to offer extraction services to TerraAscend.