From Smoking to Munching; Indiva Prepared for Cannabis 2.0 Revolution

The legalization of cannabis in Canada on October 17, 2018 was seen as a progressive and forward-thinking development.It put Canada at the forefront of this exciting new industry, as the only country other than Uruguay to legalize cannabis on a federal level. However as dynamic as this legislation was, it was limited in terms of what was initially included. Although flower was covered under these new laws, they excluded a huge part of the industry; edibles and concentrates.

A report by Arcview Market Research estimated that cannabis-based food and drink reached an estimated $1 billion in 2017 in North America. The same report estimates the edibles market could reach an astounding $4.1 billion in the US and Canada by 2022.

Canadian Edibles Market

The Canadian market is preparing to capitalize on this trend. In late December, Health Canada released draft regulations, which dictate that edible cannabis products should be fully legalized by October 17 of this year. A recent report from Deloitte entitled ‘Nurturing new growth: Canada gets ready for Cannabis 2.0’ estimates the annual market for alternative cannabis products to be $2.7 billion, with edibles contributing to over half of that.

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With this incredible business opportunity, producers and distributors are looking at ways to capitalize on this vast new sector of the market. One company which looks to be well-positioned in this category is Indiva Limited(TSXV:NDVA) (US:NDVAF).

As a Licensed Producer of medical grade cannabis, Indiva is perfectly positioned for Cannabis 2.0. It has a growing roster of brands which already produce and distribute a wide variety of cannabis products to users across Canada. As an established company, Indiva plans to use its Canadian operations as a platform to launch into the edibles market, once the surrounding legislation is finalized.

Facilities and Distribution

Indiva has a 100%-owned, 40,000 square foot indoor production facility in London, Ontario. Its facility is world class, with quality assurance and control. A clean product is ensured by its climate controlled system, as well as pest and pathogen control. Its GMP-compliant, aeroponic grow systems are environmentally friendly and highly advanced. Already producing medical grade THC, CBD and hybrid strains, Indiva is positioned to use this facility to produce equally high-grade edible cannabis products.

In early June Indiva received an amended license from Health Canada for three additional grow rooms and three additional processing rooms, bringing the company’s annual cultivation capacity to approximately 1,000kg. The increased flower capacity will serve as raw material for Indiva’s 70 tonne extraction facility which is scheduled for completion in Q3 of 2019. Indiva’s extraction system will produce some 4 million grams of distillate annually at full capacity with the potential to be more profitable than flower at current market conditions. The three newly licensed rooms will be immediately populated with plants, using advanced aeroponic grow technology, with the first harvest expected in less than 10 weeks.

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Indiva has a supply agreement in place with the Ontario Cannabis Store (OCS) and has been delivering on the order since February and is preparing to deliver gel capsules.The agreement with the OCS has resulted in Q1 net revenue gains for Indiva. The company is executing on plans to grow its facilities and product offerings and awaits approval and licensing from Health Canada. Going forward, the company aims to add further distribution agreements with retailers in other provinces in 2019, using its active sales team already located across the country.

In the longer-term, Indiva plans to use its Canadian operations as a blueprint to launch globally into new markets, as cannabis laws around the world continue to come into play.

Indiva already has agreements with US based companies to distribute internationally, and it has issued a Letter of Intent to acquire a cultivation license in Denmark, where a four year pilot program which began in January 2018 allows the sale of medical cannabis. This would give Indiva an early advantage in the European market, which should become particularly lucrative as laws liberalize across the continent.

Impressive Product Line

Among its brands, Indiva has aligned itself with high-quality and experienced edible companies, namely Ruby™ and Bhang™. Both companies are powered by Indiva, and will use the company’s cannabis oil extractions as the basis for edible products.

Ruby is the world’s first edible brand made with organic and all-natural ingredients. The product line will consist of infused sugar and salt crystals, which allows users to easily incorporate them into food and drink for the ultimate in personalized edible cannabis consumption. The line also offers fruit-based chews, pancake and drink mixes, candies and prebiotic supplements. The line will be infused with Indiva’s THC, CBD or a hybrid combination of both, offering a wide selection for those who wish to ingest cannabis, not inhale it.

Bhang Chocolate is one of the most recognised cannabis brand houses on the planet. Drawing from its diverse team, Bhang brings together over a decade of experience in the cannabis industry to create its award-winning product line. With reliable dosing and a cannabis-free taste, Bhang’s products are the ultimate in premium edibles. In addition to its range of cannabis-infused chocolates, Bhang also offers vapes, gums and mouth sprays.

Experienced Leadership

Indiva is led by CEO, Director and Co-Founder Niel Marotta. Niel managed a portfolio of over $1 billion as a fund manager at a notable US firm. He was also Vice President of a TSX listed natural resource focused company, and subsequently worked as an investment banker. As a graduate of McGill University’s commerce programme, Niel is the perfect leader to guide Indiva into this exciting new branch of the cannabis industry.

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Between its state of the art facility, calculated distribution network and expanding product offering, Indiva has set its sights high as Canada’s legal market enters the next phase of its development, the cannabis 2.0 revolution. With analysts predicting this to be a multi-billion dollar segment of the marijuana industry, Indiva has taken intelligent and bold steps to lay the groundwork for its success as edibles are legalized in Canada.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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