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Delta 9 Cannabis (TSX:DN) increases production of cannabis pre-rolls and secures funding from Manitoba Agriculture

 John Ballem John Ballem , The Market Herald Canada
0 Comments| March 10, 2023

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  • Delta 9 Cannabis (DN) has installed new automated pre-roll manufacturing equipment at its Winnipeg facility
  • The company received $175,000 in funding from the Canadian Agricultural Partnership AG Action Manitoba program
  • The automated pre-roll equipment will allow Delta 9 to produce up to four million pre-rolls per year at a significantly lower cost
  • Delta 9 Cannabis is a cannabis company that sells cannabis products through wholesale and retail sales channels
  • Delta 9 Cannabis Inc. (DN) opened trading at C$0.07

Delta 9 Cannabis (DN) has installed new automated pre-roll manufacturing equipment at its Winnipeg facility.

The installation significantly increases the company’s capacity to manufacture pre-rolled cannabis products.

The pre-roll automation project has been funded in partnership with the Canadian Agricultural Partnership AG Action Manitoba program through a Contribution Agreement for $175,000, or 25 per cent of the overall project cost.

“The expansion in pre-roll manufacturing capacity marks a significant milestone for Delta 9. In 2022 we produced and sold over 1 million cannabis pre-rolls, generating over $2.3 million in revenue,” said John Arbuthnot, CEO of Delta 9.

“We anticipate that the new automated pre-roll equipment will allow Delta 9 to produce up to four million pre-rolls per year with significantly lower manufacturing costs and improved contribution margins from the sale of pre-roll products. We want to thank the Government of Manitoba for their partnership in this investment through the AG Action Manitoba program.”

The company plans to add multiple strain-specific and innovative cannabis pre-roll products to its portfolio in 2023 and views the pre-roll segment as a key growth driver for the Company’s wholesale cannabis business.

The Canadian Agricultural Partnership is a bilateral agreement between the Government of Canada and the Government of Manitoba, which oversees the AG Action Manitoba program. The program funds investments in the Manitoba agriculture sector with a directive to enhance the diversification, competitiveness, and sustainability of the agriculture, agri-food, and agri-product sector by accelerating the pace of innovation in the Province of Manitoba.

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. 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 80,000-square-foot production facility in Winnipeg, Manitoba. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.

Delta 9 Cannabis Inc. (DN) opened trading at C$0.07.




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