Delta 9 Announces Continued Strategic Partnership and 2.0 Cannabis Product Supply Agreement with Auxly
February 25 2020 - 7:30AM
DELTA 9 CANNABIS INC. (TSX:DN) (OTCQX: VRNDF) ("Delta 9" or the
"Company"), is pleased to announce that it has entered into a
supply agreement with Auxly Cannabis Group Inc. (TSX.V:XLY)
("Auxly") who will supply Delta 9's retail stores with a suite of
cannabis 2.0 products including cannabis oils, chocolates,
chewables and vape products, where permitted.
Auxly and Delta 9 entered a strategic
partnership in September, 2018, including a supply agreement which
granted Auxly the right to purchase up to 5,000 kilograms of
cannabis and 500 kilograms of cannabis trim per year until July 1,
2030. In exchange, Auxly invested $16.25 million in the Company by
purchasing 5,909,090 common shares of the Company, becoming one of
Delta 9's early strategic investors. For more information, see
Delta 9's September 6, 2018 news release.
Auxly is an international cannabis company
dedicated to bringing high quality cannabis products to the
medical, wellness and adult use markets. Auxly's experienced team
has secured a diversified supply of raw cannabis, strong operating
capabilities and leading R&D infrastructure to create trusted
2.0 products for the expanding global markets.
"As the Canadian cannabis market has emerged
over the past few years, so has the depth of our relationship with
Auxly. Since the launch of cannabis 2.0 products in late 2019, we
have seen a significant consumer response to Auxly chocolates,
chewables, and vape products under the Foray, Kolab Project," and
Dosecann brands, said John Arbuthnot, CEO of Delta 9. "Our partners
at Auxly are leaders in the global cannabis industry, and among the
most knowledgeable and influential companies in the space. We feel
this partnership will be of great benefit to Delta 9 and its
customers."
For more information contact:
Investor & Media
Contact:Ian Chadsey VP Corporate
AffairsMobile:
204-898-7722E-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. 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, 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 TSX under the symbol "DN" and on the
OTCQX under the symbol "VRNDF". 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 the expected supply of cannabis
products by Auxly to Delta 9. 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 failure of Auxly to supply cannabis products
as well as all risk factors set forth in the annual information
form of Delta 9 dated April 30, 2019 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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