/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
WINNIPEG, Nov. 16, 2017 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: NINE) ("Delta 9" or the "Company")
is pleased to announce that Health Canada has issued its
conditional approval for the next phase of the Company's planned
expansion of its Winnipeg,
Manitoba production facility. The approval covers an
additional 143 of the Company's self-designed "grow pods", each of
which management anticipates will produce an average of 31.5
kilograms of medical cannabis per year. The Company plans to build
a total of 600 grow pods in its current building by the second
quarter of 2020. The indication of approval to proceed with the
construction of the grow pods was received from Health Canada
yesterday after Health Canada completed its "paper-based review" of
the Company's application to amend its production and sales
license.
"We are anticipating a dramatic surge in demand for cannabis, so
this is an important milestone in our journey to adequately supply
the market for recreational cannabis once legalization occurs in
July next year," said CEO John
Arbuthnot.
Health Canada will continue its
review of Delta 9's expansion as the project goes through the
construction phase, including ongoing inspections for security,
odour control measures, Good Production Practices (GPP), and other
requirements under the Access to Cannabis for Medical Purposes
Regulations (ACMPR). Full approval will not be granted until
construction has been completed and confirmed to be in compliance
with all of the regulations and requirements of the ACMPR.
Management of Delta 9 estimates that each grow pod will cost
approximately $40,000 to produce and
install, and will offer 320 square feet (29.7 square meters) of
growing space with 15 lights, producing an average of 31.5
kilograms of cannabis per year, depending on the strain being
grown.
"The grow pods allow us to expand our production capacity at a
very low capital cost and they also have several other advantages,"
says Arbuthnot. "If there is a problem with the crop in one grow
pod, it doesn't spread to the other crops we're growing. They allow
us to compartmentalize risk of crop failure due to pests or
disease. We are also finding that the quality and potency of our
cannabis products have increased greatly since adopting the new
hydroponic grow pods."
Of the 143 grow pods being built, 20 will be reserved as
"support pods" for use as cloning and mothering rooms. The
remaining 123 grow pods are anticipated by management to produce
approximately 3,875 kilograms of dried cannabis per year once they
are fully operational.
The Company also wishes to announce that it has launched its new
corporate website at www.delta9.ca, including a new section for
investors. The Company plans to launch an updated and more
sophisticated online portal for sales of medical cannabis within
the next few weeks.
About Delta 9 Cannabis Inc.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a
licensed producer of medical marijuana pursuant to the ACMPR and
operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares
trade on the TSX Venture Exchange under the symbol "NINE".
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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) Delta 9's expansion plans; (ii) Delta 9's production of
cannabis; (iii) approvals for Delta 9's production facilities by
Health Canada; (iv) demand for Delta 9's products; and (v) Delta
9's cost to produce its grow pods. 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 that Delta 9's currently contemplated
expansion and development plans may cease or otherwise change,
Delta 9's production of cannabis may be lower than expected, Delta
9 may not obtain the required approvals from Health Canada, demand
for Delta 9's products may be lower than anticipated, Delta 9's
cost to produce its grow pods may be higher than expected and all
other risk factors set forth in the filing statement of Delta 9
dated October 25, 2017 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.
SOURCE Delta 9 Cannabis Inc.