On June 13, 2024, Indiva Limited (TSXV: NDVA) and its subsidiaries received an Initial Order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA) to restructure their business and financial affairs. The decision followed financial underperformance and pressures from obligations to creditors, compounded by the fragmentation of the cannabis industry. Despite exploring alternatives such as strategic reviews, the Indiva Group's board concluded that seeking creditor protection was in the best interest of stakeholders.

The court order includes a stay of proceedings for the Indiva Group, approval of debtor-in-possession financing (DIP Financing), and the appointment of PricewaterhouseCoopers Inc. as the monitor. The stay of proceedings and DIP Financing will provide Indiva with the stability needed to explore restructuring options, potentially including a court-supervised sale of assets.

Indiva intends to seek court approval for a sale and investment solicitation process (SISP), expected to be managed by the Monitor. This process may involve a transaction with SNDL Inc., an existing creditor, to acquire substantially all of Indiva's business and assets as a stalking horse bid.

Business operations are expected to continue uninterrupted, and Indiva aims to emerge from creditor protection with a healthier balance sheet. Bennett Jones LLP is acting as counsel for the Indiva Group in its CCAA proceedings. Rachel Goldman resigned from Indiva's board prior to the initiation of CCAA proceedings. Trading of Indiva's common shares on the TSX Venture Exchange may be halted, with potential suspension or delisting due to the CCAA filing.