Delta 9 Reports Year-end Financials for 2023

(TheNewswire)

WINNIPEG, MB – TheNewswire - April 1, 2024 – DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month period and year ending December 31, 2023.

Financial Highlights for the Year Ending December 31, 2023

• Net revenues of $71.1 million in 2023, an increase of 12%, versus $63.2 million for the year ending December 31, 2022.

• Gross profit of $18.0 million in 2023, an increase of 39%, versus $12.9 million for the year ending December 31, 2022.

• Adjusted EBITDA of $3.4 million in 2023 versus an Adjusted EBITDA (loss) of ($5.2) million for the year ending December 31, 2022.

• Loss from Operations of $(13.5) million in 2023 versus a Loss from Operations of $(20.3) million for the year ending December 31, 2022.

• Cash flows provided from operations of $4.2 million in 2023 versus cash flows used in operations of $3.7 million for the year ending December 31, 2022.

Financial Highlights for the Three-Month Period Ending December 31, 2023

• Quarterly net revenues of $17.5 million for the three-month period ending December 31, 2023, a decrease of 1%, versus $17.6 million for the three-month period ending December 31, 2022.

• Gross profit of $3.6 million for the three-month period ending December 31, 2023 versus $3.4 million for three-month period ending December 31, 2022.

• Adjusted EBITDA of $1.5 million for the three-month period ending December 31, 2023 compared to an Adjusted EBITDA1 (loss) of $(1.5) million for the three-month period ending December 31, 2022.

“We are pleased to report record fourth quarter and year end results for 2023 demonstrating the versatility of our business model with measurable improvements versus our 2022 year end results,” said John Arbuthnot, CEO of Delta 9 Cannabis. “Challenges persist in the Canadian cannabis industry, which continues to struggle with intense competition resulting in margin compression and affecting overall growth. We remain confident that Delta 9 will be able to navigate the industry challenges and return the Company to growth and profitability in the coming quarters.”

Summary of Quarterly Results:

1. Adjusted EBITDA is a non-IFRS measure, and is calculated as earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items.

A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the three-month and year ending period ending December 31, 2023 filed on SEDAR and can be found at www.sedar.com.

2023 Year End Results Conference Call

A conference call to discuss the above results is scheduled for April 1, 2024. The conference call will be hosted that day at 11:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.

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.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 statements relating to: (i) the Company’s plans to establish cannabis distribution operations in Manitoba; and (ii) the Company’s plans to continue to expand its retail operations in Canada. 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 28, 2024 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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