(TheNewswire)
WINNIPEG, MB – TheNewswire - May 24, 2024 – DELTA 9 CANNABIS INC. (TSX:DN) (OTC:DLTNF) (“Delta 9” or the “Company”) announces today that is has received a letter (the “Demand Letter”) from SNDL Inc. (“SNDL”) demanding repayment of its 10% senior secured second-lien convertible debenture (the “Convertible Debenture”) in the principal amount of $10,000,000, all outstanding interest thereon, and any other costs or amounts recoverable in connection therewith. In the Demand Letter, SNDL alleges that Delta 9 is in default of certain obligations under the Convertible Debenture and related financing documents (collectively, the “Financing Documents”).
Delta 9 has reviewed the Demand Letter and has concluded that it is not in default of its obligations under the Financing Documents. Delta 9 notes that none of the alleged defaults in the Demand Letter are for failure to make required payments of principal or interest and Delta 9 remains current with all required payments to SNDL. Prior to receipt of the Demand Letter, SNDL had requested certain concessions from Delta 9 relating to the Financing Documents that Delta 9 was not willing to agree to.
At this time Delta 9 also wishes to announce that it has formed an independent committee of its board of directors to examine various potential strategic transactions for Delta 9, which may include, without limitation, mergers, acquisitions, asset sales or financings. To date, Delta 9 has had discussions with various parties with respect potential strategic transactions. There can be no assurance that any of these discussions will result in a binding agreement or the completion of a transaction. No further details regarding such discussions, including the identity of any potential counterparty, will be disclosed at this time.
Delta 9 believes that the timing of the Demand Letter is related to SNDL becoming aware of the discussions that Delta 9 has had with various counterparties with respect to potential strategic transactions. Through delivery of the Demand Letter, SNDL may be attempting to insert itself into that process and potentially affect the outcome thereof. Notwithstanding the delivery of the Demand Letter, Delta 9 intends to continue to actively explore a broad range of strategic alternatives to maximize shareholder value. There can be no assurance that this process will result in any binding agreements or the completion of any transactions.
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722