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Delta 9 Cannabis Inc DLTNF

Delta 9 Cannabis Inc. is a Canada-based vertically integrated cannabis company. The Company operates through three segments: Wholesale Cannabis, Retail Cannabis and Merchandise and Devices, and Business to Business. The Company sells cannabis products through its wholesale and retail sales channels and sells its cannabis growing pods to other businesses. Its cannabis products include dried cannabis and pre-rolled joints. Its edibles and vapes include vape pens and concentrates, edibles, and drinkables. The Company, through its wholly owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis products and operates a 95,000-square-foot Health Canada licensed production facility in Winnipeg, Manitoba, Canada. It also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. It is focused on producing and selling cannabis oils, extracts, and derivative products.


GREY:DLTNF - Post by User

Bullboard Posts
Comment by johnaboon Jan 29, 2019 9:02pm
42 Views
Post# 29293878

RE:RE:RE:RE:RE:Our Westleaf shares....

RE:RE:RE:RE:RE:Our Westleaf shares....Anschutz, I think I speak for everyone when I echo that your commentary on the Company in general is simply excessively negative. I don't think anyone on the board is opposed to mixed commentary but you point out only the "potentially" negative components on every single announcement or deal. This is not constructive or helpful.. To provide some alternative commentary on the West Leaf deal that folks on the board may find helpful; - Delta 9 invested $3 Million for 50% in Delta West LP, the extraction facility in Calgary. This was a non-liquid investment. - To date West Leaf has not obtained licenses for any retail, extraction, or cultivation facilities.. however they have been very successful to position for execution on their vertical integration strategy and have been successful raising capital. We do not know when the facility might be licensed. - Delta 9 wrote down a portion of their investment in the Delta West facility in Q3, and it is safe to assume they will further write down the investment in Q4 based on their portion of the loses in the startup phase. So we are writing down our original $3 Million every quarter moving forward. - This transaction means that Delta 9 now owns 5,600,000 liquid shares in the West Leaf patent Co., after the hold periods mentioned, meaning that they will have the ability to sell, and also they have de-risked their exposure to Delta West/ West Leaf, i.e. if West Leaf's retail unit is successful, or cultivation unit is successful, but not the extraction, Delta 9 could see a more positive return than otherwise owning 50% of the Delta West LP. - On the downside risk you have mentioned, even if West Leaf shares trade at their concurrent financing price of $0.85/ share, 5,600,000 shares is worth $4,760,000, a return of 58.6% from our original investment, not bad for 12 months or so of capital deployment. - If on the other hand West Leaf shares trade anywhere upwards of their concurrent financing price, we could see a huge return here. Simply my 2 cents..
Bullboard Posts