PRODUCT UPDATE ON INDIVA LOZENGES

Rhea-AI Summary

Indiva Limited (TSXV: NDVA) announced on March 14, 2023, that Health Canada has classified its Wild Cherry and Life Lemon THC Lozenges as "edibles" instead of "extracts." As a result, production of these products has been halted while the company consults with advisors for potential resolutions. The affected products contain THC in various dosages (100 mg, 250 mg, and 500 mg per package). The Company had previously believed it complied with regulatory classifications based on extensive research. Indiva is exploring alternative packaging formats for these products moving forward.

Positive

• Indiva is proactively consulting with advisors to find a resolution to the issue.
• The company is considering alternative packaging formats for continued product offerings.

Negative

• Ceasing production of the THC Lozenges may lead to revenue declines.
• Misclassification by Health Canada suggests possible regulatory compliance issues.

LONDON, ON, March 14, 2023 /PRNewswire/ - Indiva Limited (the "Company" or "Indiva") (TSXV: NDVA), announced that it has received notification from Health Canada (the "Notice") of its determination that certain of its lozenges have been improperly classified as an "extract" rather than an "edible" under applicable cannabis regulations. Heath Canada has requested that Indiva cease production of the lozenges. The lozenges subject to this determination are the Indiva Wild Cherry THC Lozenges and Life Lemon THC Lozenges in their 100 mg, 250 mg and 500 mg THC per package formats (the "Products"). Prior to the launch of the Products, the Company closely considered the regulatory requirements of the legislation, including with respect to product classification, and conducted substantial research. Consistent with the legislative requirements and the Company's research, the Company classified the Products as cannabis extracts. Currently, the Company has paused production of the Products as it consults with its advisors and considers next steps and a potential resolution of this matter. The Company may choose to continue manufacturing the Products in alternative packaging formats.

ABOUT INDIVA

Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva produces and distributes award-winning cannabis products nationally, including Bhang^® Chocolate, Wana™ Sour Gummies, Pearls by Grön Gummies, Dime Industries^TM vape products, as well as capsules, edibles and extracts under the INDIVA and Indiva Life brands. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

DISCLAIMER AND READER ADVISORY

General

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. Although the Company believes that the assumptions underlying, and the expectations reflected in, forward-looking statements in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. Specifically, readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake to, update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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SOURCE Indiva Limited

FAQ

What did Indiva Limited announce on March 14, 2023?

Indiva announced that Health Canada reclassified certain THC Lozenges, leading to a production halt.

What are the implications of Health Canada's decision on Indiva's THC Lozenges?

The decision requires Indiva to stop production of Wild Cherry and Life Lemon THC Lozenges, affecting their product line.

What products are affected by the Health Canada notice to Indiva?

The affected products are Indiva Wild Cherry THC Lozenges and Life Lemon THC Lozenges in several THC dosage formats.

How is Indiva responding to the production halt of its THC Lozenges?

Indiva is consulting with advisors and considering alternative packaging formats for the affected products.