Winnipeg-based cannabis licensed producer and retailer
Delta 9 Cannabis Inc. (
TSX: DN,
OTCQB: DLTNF,
Forum) has announced financial and operating results for the three-month period ending March 31, 2022.
Q1, 2022 Highlights:
- The Company announced closing of transformative retail acquisition acquiring 17 cannabis retail stores in Edmonton, Alberta from Uncle Sam’s Cannabis Ltd. Delta 9 now has 35 operating retail stores and is a leading retailer of cannabis products in Canada. The Company expects the Uncle Sam’s Transaction to be accretive in 2022 and 2023 before synergies. The acquisition represents an attractive revenue multiple of approximately 0.68x annualized revenue.
- The Company completed a strategic financing of $10 million with Sundial Growers Inc. (NASDAQ: SNDL) by way of a convertible debenture that matures on March 30, 2025 and bears an interest rate of 10% per annum. The Sundial Debenture is convertible into common shares at a conversion price of $0.35 per common share.
- The Company announced closing of a $32 million Credit Facility with connect First Credit Union. The credit facility consists of a $23 million commercial mortgage, a $5 million M&A facility, and a $4 million working capital line of credit. The term of the facility is for 5 years and amortized over a 12-year period. The funds will be used to pay down $11.2 million in existing debt and $11.8 million for the Company’s existing $11.8 million convertible debenture due July 2022. To our knowledge, the new 4.55% fixed interest rate we are paying is among the most competitive rates established by any public cannabis company to date.
Full news release
here.
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FULL DISCLOSURE: Delta 9 Cannabis Inc. is a client of Stockhouse Publishing.