News - DN Renews Right to Rebuy Shares and DBs
Delta 9 Announces Renewal of its Normal Course Issuer Bid for Common Shares and Convertible Debentures
WINNIPEG, MB – November 2, 2021 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”) today announced that the Toronto Stock Exchange (“TSX”) has approved the renewal of the Company’s normal course issuer bid (the “NCIB”). Under the NCIB, the Company can purchase: (i) up to an aggregate of 6,827,032 common shares of the Company (“Common Shares”), representing 10% of the public float of Common Shares as at October 29 2021; and (ii) up to an aggregate of $1,180,000 principal amount of 8.5% unsecured convertible debentures of the Company (“Debentures”), representing 10% of the public float of Debentures as at October 29, 2021.
Purchases of Common Shares and Debentures pursuant to the NCIB may be made through the facilities of the TSX and alternative Canadian trading systems commencing on November 5, 2021 and ending on November 4, 2022, or an earlier date in the event that the Company purchases the maximum number of the Common Shares and Debentures available under the NCIB. The Company will pay the market price at the time of acquisition for any Common Shares and Debentures purchased through the facilities of the TSX. All Common Shares and Debentures acquired directly by the Company under the NCIB will be cancelled.
As at October 29, 2021: (i) there were 105,514,768 Common Shares and $11,800,000 principal amount of Debentures issued and outstanding; (ii) 37,244,443 Common Shares and no Debentures were held by the senior officer and directors of the Company; and (iii) the public float of the Company was 68,270,325 Common Shares and $11,800,000 principal amount of Debentures.
The average daily trading volume of the Common Shares and Debentures for the six-month period ended September 30, 2021 was 94,232 Common Shares and $10,309 principal amount of Debentures. Daily purchases will be limited to 23,558 Common Shares and $2,577 principal amount of Debentures, other than block purchase exceptions.
The Company sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares and Debentures may not fully reflect the value of the Common Shares and Debentures. The Company believes that, in such circumstances, the purchase of Common Shares and Debentures represents an accretive use of capital.