/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
WINNIPEG, Dec. 28, 2017 /CNW/ - Delta 9 Cannabis
Inc. (TSXV:NINE) ("Delta 9" or the "Company") is pleased
to announce that it has closed its previously announced bought deal
financing of 8,521,500 units (the "Units") at a price of
C$2.70 per Unit (the "Offering
Price") for aggregate gross proceeds to Delta 9 of C$23,008,050 (the "Offering"). The Offering was
conducted by a syndicate of underwriters led by Canaccord Genuity
Corp., and including PI Financial Corp., Beacon Securities Limited,
Haywood Securities Inc. and Mackie Research Capital Corporation
(the "Underwriters"). The Offering included 1,111,500 Units sold
pursuant to the full exercise of the Underwriters' over-allotment
option. Each Unit consists of one common share of the Company (a
"Common Share") and one Common Share purchase warrant (each whole
Common Share purchase warrant, a "Warrant"). Each Warrant is
exercisable to acquire one Common Share (a "Warrant Share") at an
exercise price of C$3.25 per Warrant
Share for a period of 30 months from the closing of the Offering.
The Company has applied to list the warrants for trading on the TSX
Venture Exchange. The Warrants will be listed for trading subject
to meeting distribution requirements and the other requirements of
the TSX Venture Exchange.
The net proceeds of the Offering will be used to expand Delta
9's cannabis cultivation operations and general corporate
purposes.
"We were delighted to find that there was such overwhelming
demand for the offering", said Delta 9 Chief Executive Officer,
John Arbuthnot. "We believe that the
proceeds from the base offering provide us with the ability to
achieve our stated goal of having 373 grow pods producing 12,000
kilograms of cannabis on an annual basis by the end of 2019. It is
our further expectation that the additional proceeds from the
over-allotment option as well as anticipated revenues from the sale
of cannabis will enable Delta 9 to build additional grow pods and
increase its annual cannabis production capacity to well beyond
12,000 kilograms per year by mid-2020."
The Units were offered by way of a short form prospectus filed
in all of the provinces of Canada
except Québec pursuant to National Instrument 44-101 Short Form
Prospectus Distributions.
The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States or to, or for the account or
benefit of, U.S. persons absent registration or an applicable
exemption from the registration requirements. This news release
will not constitute an offer to sell or the solicitation of an
offer to buy nor will there be any sale of the securities in any
state in which such offer, solicitation or sale would be
unlawful.
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
approximately 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 the 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 the closing of the Offering, the use of proceeds of the
Offering, construction of new grow pods and future revenues from
the sale of cannabis. 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 and the final
prospectus of Delta 9 dated December 20,
2017, both of which have 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.