Delta 9 Cannabis Inc DLTNF

Delta NINE highlights

[Kevelle]

“The province of Manitoba has laid out a plan for the opening of 40 retail cannabis locations by four approved operators. As one of the four approved retailers, NINE (in a 50/50 JV with Canopy Growth) anticipates opening cannabis retail stores across the province – the first two in Winnipeg, followed by Brandon, and Thompson. We estimate that at an average $5M in revenue per store NINE’s initial four retail stores will generate $20M in the first full year of operations (2020).”

Highlights - Delta Nine:

• As of March 31, 2018 the Company had $21,693,847 in working capital on hand;
• The Company reported revenue from the sale of dried cannabis increased 225 per cent over the same period in the prior year;
• The Company also reported an increase in profits of 644 per cent over the same period in the year prior.
• Delta 9 and Canopy Growth jointly acquired the conditional license to build and operate retail cannabis stores in the Province of Manitoba, one of only four proponents to be awarded that license;
• The Company entered into an export agreement to Germany with Global Group Kalapa and CanPharma, both of which are early pioneering firms working in the area of medical cannabis in Europe;
• The Company signed a Memorandum of Understanding for a Supply Agreement with Sundial Growers Inc. for 8,000 kilograms of cannabis, in order to secure supply for its growing retail operations in Alberta and Manitoba;
• Delta 9 co-developed a hemp beer called Legal Lager with Fort Garry Brewing Company in Manitoba, and has a non-alcoholic cannabis beer (with THC) in development, subject to approvals by the federal government;
• Delta 9 completed negotiations to buy out the land on which its production facilities are located, securing a significant acreage suitable for expansion, at a price of $6,250,000. Delta 9 is currently developing a Cannabis Campus that will be among the largest production facilities in the world. The option to buy the property is expected be executed in Q3 once the subdivision of the land has been approved by the City of Winnipeg.