Indiva closes C$22 million strategic investment from Sundial

Chicago, Feb. 23 – Indiva Ltd. has closed a C$22 million strategic investment from Sundial Growers Inc., according to a press release.

Half of the investment was in stock in the form of 25 million shares of Indiva at a price of C$0.44 per share and the other half was in the form of a non-revolving term loan for C$11 million.

The C$11 million loan lists Sundial as the sole lender.

The term loan matures on Feb. 23, 2024 and bears interest at 9% per year.

Half of the interest on the loan is payable on the last day of each month and the other half can be paid, at the option of the borrower, in cash on the last day of each month or in arrears on the maturity date.

The term loan was issued at a discount, at 96.

Upon a change of control of Indiva, Sundial will have the option exercisable within 60 days to require Indiva to prepay the loan at 104 plus interest.

Proceeds will be used to retire Indiva’s debt in full, which includes its demand loan and promissory note, as well as for working capital and other general corporate purposes.

Indiva paid to ATB Capital Markets Inc., as broker for the private placement, a C$330,000 cash commission as 3% of the gross proceeds from the equity placement and a financial advisory fee of $220,000 as 2% of the principal amount of the term loan.

Indiva is a cannabis company based out of London, Ont.

Sundial is a cannabis company based in Calgary, Alta.

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