Indiva (OTCMKTS:NDVAF) has today announced the addition of Dycar Pharmaceuticals Ltd to its B2B platform. The two business giants move into a strategic partnership, hoping to boost business revenues significantly.
A close outlook at the agreement
The Chief Executive Officer of Indiva Niel Marotta describes Dycar as a top-quality partner that they have been privileged to work with. He outlines that they share common interests, and that will help them work together smoothly. Both of these companies are inclined to the delivery of leading and top quality products to the market.
Marotta says that they are ready to start the business collaboration by cooperating fully with the team from Dycar. The common goal is to formulate new products that conform to customer and consumer expectations.
Indiva is also quite pleased to disclose details about its new financing. It is a convertible debenture form of business financing that is worth $4 million.
State of affairs
The new working relationship between these two is a progressive white-label manufacturing deal with wide-ranging benefits. Indiva discloses that the terms of the deal are quite clear and that Dycar is ready to play its part. It is required to serve the partner with $3.1 million in the form of non-dilutive financing. This will be the initial amount given out.
On the other hand, Indiva is expected to fulfill its end of the bargain. This will be the manufacture and distribution of some particular cannabis products with the Dycar brand on them. The business giant has a licensed facility in Ontario, and this is where the manufacturing activities will be taking place.
The deal also provides that Dycar will repay Indiva for its services. This will be done by deducting the value of Indiva services according to the signed deal. There will also be an opportunity for the renewal of the letter agreement. However, that will be at a minimum of about two additional terms. This may require an additional payment of about $4.5 million again in the form of non-dilutive financing.
Indiva is chatting the way forward into the future. The Q1 2020 is when it commences the production of the wide-ranging Dycar branded products.