Good morning, ladies and gentlemen, and welcome to the Indiva Limited Q1 2023 earnings release conference call. At this time, all lines under listen only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator. This call is being recorded on Tuesday, May 16th, 2023. I would now like to turn the conference over to Niel Marotta, CEO. Please go ahead. Thank you, operator. Welcome, everyone. Thank you for joining us this morning to discuss Indiva's financial results for the first quarter ended March 31, 2023. Matters discussed in this conference call include forward-looking statements. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Certain material factors and assumptions were considered and applied in making these forward-looking statements. Additional information regarding these forward-looking statements, factors, and assumptions is available in our earnings press release issued today, as well as in the Risk Factors section of the quarterly MD&A and other public disclosure documents available on Indiva's SEDAR profile. We're pleased to report financial results, including improved gross margins, record gross profit, and positive adjusted EBITDA for our first quarter ended March 31, 2023. Results in the first quarter were primarily driven by new product introduction and higher gross margins and lower operating costs as we benefited from the implementation of automation in the processing and production of edibles. Indiva's market share in the adult rec channel remained robust in the first quarter. As per Hifyre data, Indiva continues to lead the edibles category with 27% market share and holds the number 1 market share position in aggregate in gummies, chocolate, and baked goods subcategories. In the gummies subcategory, Indiva has 27.3% market share, with Wana Sour Gummies having 19.6% share of gummy sales, and Pearls by Grön Gummies has grown to 7.7% share in gummy sales, despite not yet being available in Alberta during the period. In chocolate, Indiva held 34.8% total subcategory share as they continue to lead the chocolate category with 32.6% subcategory share. In baked goods, Indiva led the baked goods category with 61% share, driven by the success of Indiva Life Double-Stuffed Sandwich Cookies. Looking closer at Hifyre market share data for the first quarter of 2023 and focusing on data from BC, Alberta, Ontario, Manitoba, and Saskatchewan, the edibles category increased sequentially from the fourth quarter by 4% to CAD 67 million in retail sales and increased by 26% compared to Q1 2022. First quarter results and highlights include Pearls Gummies continued to perform well. The blue raspberry flavor was the number one selling gummy by units in Ontario in the first quarter. Pearls Gummies were the number seventh best-selling edible by dollars as per Hifyre data. Pearls Gummies did ship to Alberta in the month of April. We're very excited to finally bring Pearls to this important market. Indiva began supplying products to Tilray's medical platform, including Pearls by Grön, Wana Sour Gummies, Bhang Chocolate, as well as Indiva Double Stuffed Sandwich Cookies. Indiva signed an exclusive agreement with Valiant Distribution, a subsidiary of Canna Cabana, for the distribution of its products in the province of Saskatchewan. This agreement will substantially reduce shipping costs to Saskatchewan stores. Finally, as per the press release dated March 14, 2023, the company received notification from Health Canada of its determination that certain of its lozenges have been improperly classified as an extract rather than an edible under applicable cannabis regulations. Health Canada ordered Indiva to cease production and sale of lozenges. We did so immediately. Subsequently, we've right-sized our production team as a direct result of this Health Canada order. Thanks to events subsequent to quarter end, initial deliveries of Pearls by Grön gummies were made to the province of Alberta. All new flavors were delivered, including blackberry lemonade, blue raspberry, pomegranate, and sour apple. The company expects meaningful revenue contribution from Pearls Gummies in this important market. We've also introduced 3 new mono gummy SKUs, including Citrus Burst Sativa, Wild Raspberry Indica, and Pineapple Passionfruit. We also introduced 3 new chocolates into the Alberta market under the INDIVA 1432 brand, namely dark chocolate, cookies and cream, and caramel dark chocolate. Indiva recently proposed 18 new products for listing in its recent submission to the OCS, the majority of which were derived from new in-house innovation. I want to take a minute to talk about edibles regulations in Canada. We continue to advocate for regulatory change with respect to the rules around per package THC limits relating to edibles. While the edible category in Canada continues to grow at a faster pace than the overall cannabis market, the edible category remains stunted as a percentage of the total market, primarily due to the 10 milligram per package THC limit. Data from mature US markets where the higher per package THC limits exist show the edibles category represents 2-3 times the relative size of the Canadian edibles category. Please note that we're not necessarily advocating for higher THC per serving. In fact, most mature markets in the US limit the per serving THC limits to 10 milligrams, just as we do in Canada. They do allow for 100 milligrams or more of THC in total per package, while in Canada we remain limited to 10 milligrams per package. Limiting the total THC per package to 10 milligrams, as we do in Canada, has created prohibitively costly product for most consumers, and in particular for medical patients that often require much more than 10 milligrams at a time for proper dosing. Make no mistake, this is a public safety issue. When consumers cannot purchase safe, affordable product in the legal market, they turn to the illicit market where products contain upwards of 500 milligrams of THC. The products are intentionally packaged to look like recognizable mainstream confectionery products and where the packaging is flimsy and easily opened by a minor. Health Canada published a public advisory on May 10th, which I would encourage everyone to read, addressing what they call copycat edibles, I quote, "Are packaged to look like popular brands of candy, snacks or other food products that are typically sold at grocery stores, gas stations and corner stores." Clearly, the illicit market has stepped in to fill the potency void created by the 10 milligram limit on edibles, and has done so with packaging that looks confusingly similar and familiar to mainstream confectionery products. The 10 milligram per package THC limit actually creates this public safety risk where there need not be 1. Indiva has sold 25 million packs of edibles in the last 3 years, we've never received 1 single complaint that a minor has unintentionally ingested 1 of our edible products. Most adults even admit to struggling to open our packaging, as we use child-resistant packaging that is resealable for products with multiple servings. Robust demand for ingestible extracts, which as per Health Canada's orders, will exit the market completely in Canada after May 31st, demonstrate the power of consumer de-demand for higher potency and hence lower price per milligram product. A good analogy is to imagine if wine and spirit companies were restricted to selling their product in minibar bottles. Imagine only being able to purchase wine in no larger than a 2.5 ounce bottle or spirits at only 2 ounces at a time. Clearly, these limits would be cost prohibitive to the consumer and again, would result in unintended consequences. One more time, we're not necessarily advocating for higher per serving potency per se, rather simply allowing more servings per package. Allowing, for example, up to 10 milligram servings per package, as is commonplace in US markets, will have the effect of lowering the price per milligram of THC to the consumer. Ultimately, this is the only way we can sustainably shift demand from the illicit market to the legal market and drive out the dangerous and illegal copycat edibles. The legal market makes high quality edibles with safer packaging, consistent, accurate and even dosing with superior flavor. We're unable to fully compete with the illicit market on price simply because of regulation, which, while perhaps well-intended, is betraying the very goal of the Cannabis Act, namely to improve public safety and take money out of the hands of criminals. The time is now for change. With the Cannabis Act currently under review, we will continue to advocate for an increase in total milligrams of THC per package of edibles on behalf of all licensed producers, retailers, provincial wholesalers, consumers and medical patients. With that, I'd like to thank all of Indiva's employees, especially our dedicated staff at our facility in London, Ontario, for their continued hard work and resilience in these times of regulatory uncertainty. Thank you. I'm sure cannabis enthusiasts everywhere in Canada thank you too. I'll now turn it over to Indiva's Chief Financial Officer, Jennifer Welsh, to review the financial results in greater detail. Thank you, Niel. I'll review Indiva's financial performance for fiscal Q1 ended March 31st, 2023. Gross revenue in the first quarter increased 7% year-over-year and grew 1% sequentially to CAD 10.4 million. Net revenue increased 6% year-over-year and 1% sequentially at CAD 9.4 million in the quarter, driven mainly by new product introductions. Overall, edibles represented 78% of net revenue in Q1 2023, primarily due to higher sales of ingestible extracts in the quarter. In Q1 2023, Indiva sold products containing 112 million milligrams of cannabinoids, the active ingredient in edible products, which represents a 37% increase when compared to the 82 million milligrams in products sold in Q4 2022, and a 105% increase compared to 55 million milligrams sold in Q1 2022. The sequential increase was a function of higher sales and a mix shift towards products with higher average cannabinoid content. Gross profit before fair value adjustments, impairments, and one-time items improved year-over-year and sequentially to a record CAD 3.1 million, or 34% of net revenue, versus 29% in Q4 2022, and 30% in Q1 2022. The improvement in gross margin% was due to the implementation of fully commissioned automation as well as product mix. Operating expenses in the quarter decreased 17% sequentially and declined 8% year-over-year, representing 34% of net revenue versus 42% in Q4 2022, and 39% in Q1 2022. Operating expenses declined sequentially, primarily due to lower marketing and sales costs. Adjusted EBITDA improved sequentially in Q1 2023 to a profit of CAD 415,000 versus a loss of CAD 526,000 in Q4 2022 and a loss of CAD 378,000 in Q1 2022, due to higher sales, higher gross margins and lower operating expenses. Comprehensive net loss of CAD 2.3 million included one-time gains and non-cash charges for impairment of inventory and property, plant and equipment totaling CAD 900,000. Excluding these amounts, comprehensive loss declined to CAD 1.3 million versus an adjusted loss of CAD 2.4 million in Q4 2022 and CAD 1.9 million in Q1 2022. The cash balance at quarter end was CAD 2.8 million. Looking forward, the company expects Q2 2023 net revenue to improve compared to the same period last year. However, there is a risk that net revenue may decline sequentially as sales of new products tail off as lower sales of ingestible extracts as a result of Health Canada's recent order to stop production and sale of these products. Sequential growth in net revenue is expected to resume in the second half of 2023, driven by the introduction of new products in the third and fourth quarters, resulting primarily from in-house innovation. Gross margins are expected to continue to trend higher and benefit from the implementation of automation in the production and packaging of edible products. Thank you, Jen. Operator, I think with that, we'll open up to questions, please. Thank you. Ladies and gentlemen, should you have a question, please press the star followed by the one on your touchtone phone. If you'd like to withdraw your question, please press the star followed by the two. Again, to ask a question, press star one. Your first question comes from Andrew Semple from Echelon Capital. Please go ahead. Hi there. Good morning. Thanks for taking my question. First off, I just want to maybe ask for a little bit of additional details on the new products that get submitted to Ontario for listing. Are these new SKUs within existing brands or are these new formats and new products altogether? Yeah. Thanks, Andrew. It's a combination of both, but primarily these will be under a new brand that we're not gonna speak too much about just yet. Suffice to say, this will leverage our low-cost producer status. The best I can tell you is that some of them are in edibles, some of them are in inhalables, but they're all products similar to what we make already. I don't mean to be cryptic, you know, we wanna give folks an idea of what we're doing without necessarily broadcasting specifics for competitive reasons. Understood. Appreciate the color there. To the outlook pointing to gross margins trending higher, I'm just wondering whether that's, you know, trending higher between now or year-end or whether you actually expect each quarter to show step-ups. You know, how much lumpiness might there be to that trend? Just wondering on that point, you know, if you're expecting potentially sales to decline in Q2, whether there might be some operating leverage on the gross margin line there. Yeah, I think that's why we're not being specific about, you know, giving you a range, you know, per quarter looking forward. We'd love to have that kind of visibility on our business, Andrew Semple. We are really starting to see the benefits of the automation, and we did have a nice tick-up in margins sequentially on sales that were... Even though we thought they'd be down in Q1, we're actually slightly up on a sequential basis by the 1%. We're not expecting any huge drop-off in sales. We're just trying to highlight a risk just to be thorough. Similarly with margins, one area, and I'm happy to turn this over to Jen too, the margins on the ingestible extracts were very good. You know, some of the best margins of any of the products we made. Part of the reason for that too is that there's no royalty involved. It was in-house innovation. That mix shift will hurt somewhat. I, you know, I still think the trend for the rest of the year will be higher in margins, particularly once we get into Q3 and 4. That's helpful. Appreciate that additional color. While we're on the topic of ingestible extracts, if you're able to, would you be able to provide a breakout of maybe the sales and EBITDA attributed to that product format within the first quarter? I'm just trying to, you know, fine-tune estimates as it relates to Health Canada's decision on that product. Sorry. I think the ingestible extracts, the revenue in the third quarter is about CAD 1.3 million-CAD 1.4 million. Pardon me. That is about 14% of sales as I remember it. We're not gonna give out exact gross margin and gross profit guidance on there, but you can certainly assume that the gross margins are higher than the corporate average. It was, it was meaningful. You know, again, we think, we think we have great products coming up that'll be able to replace that revenue and that profit. Great. Maybe one last quick one for me. Just when in Q2 did the first shipments of Grön products in Alberta first begin? They just hit stores literally on Friday, to my knowledge, so this is all very recent. I think we shipped it out about two weeks ago, and there's always a bit of a lag, you know, between it landing and getting out to stores. People should be able to find them in store in Alberta this week. You know, we'd certainly expect the distribution to broaden significantly across the province over the next few weeks here. Thank you very much, Niel, for taking my questions. Congrats on the positive EBITDA in the quarter. I'll get back into queue. Thanks, Andrew. Ladies and gentlemen, as a reminder, should you have a question, please press the star followed by the one. Niel, there are no further questions at this time. Please proceed with your closing remarks. Okay. Thank you everyone for attending the call. We're gonna get back to work and look forward to speaking to you all again, when we release our second quarter results, in mid-August. Thanks, everybody. Ladies and gentlemen, this concludes your conference call for today. We thank you for joining, and you may now disconnect your lines.