(TheNewswire)
WINNIPEG, MB – TheNewswire - January 23, 2024 – DELTA 9 CANNABIS INC. (TSX:DN) (OTC:DLTNF) (“Delta 9” or the “Company”), is pleased to announce that it has entered into a Supply Agreement (the “Supply Agreement”) for the sale of bulk cannabis flower with a leading Canadian Licensed Producer (the “LP”).
Under the terms of the Supply Agreement the Company will cultivate select cannabis cultivars for the LP based on a rolling twelve month forecast. Over the first twelve months of the Supply Agreement the Company anticipates a contract value of $4,620,000.
“This contract is pivotal for Delta 9 as we begin to see a strengthening of demand in the domestic market for high quality cannabis flower,” said Alexa Goertzen, Vice President of Cannabis Sales. “As a low-cost producer, Delta 9 is well positioned to offer our bulk customers attractive contract growing opportunities. We are continuing to grow our bulk wholesale business as consistent and profitable opportunities present themselves.”
On January 9, 2023, the Company announced that it would be reducing its cultivation capacity at it’s Winnipeg based facilities by approximately 40%, from 10,000 kilograms to 6,000 kilograms annually. The Company anticipates increasing its cultivation capacity in 2024 to 10,000 kilograms annually, in order to meet its commitments under the Supply Agreement. The Company plans to make its first scheduled shipment under the Supply Agreement in the second quarter of 2024.
For more information contact:
Investor & Media Contact:
Ian Chadsey, VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca
About Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 95,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9's shares trade on the Toronto Stock Exchange under the symbol "DN" and on the OTC under the symbol "DLTNF". For more information, please visit www.invest.delta9.ca.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include; (i) statements relating to the Company’s intent to supply cannabis under the Supply Agreement, (ii) the anticipated contract value of the Supply Agreement, and (iii) the Company’s intent to increase the cultivation capacity of its Winnipeg based facilities. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 30, 2023 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
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