/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION
TO U.S. WIRE SERVICES/
WINNIPEG, Jan. 4, 2018 /CNW/ - Delta 9 Cannabis Inc. (TSXV:
NINE) ("Delta 9" or the "Company") has unveiled its more detailed
expansion plans following the closing of its $23 million short form prospectus offering of
units on December 28, 2017.
As part of that expansion, Delta 9 CEO John Arbuthnot says the company expects to
create more than 200 new jobs in the areas of production and
construction alone.
Delta 9 projects the hiring of 105 full-time equivalent (FTE)
jobs in the production facility by the end of this year, and an
additional 12 workers for construction.
That number is expected to almost double in 2019, when the
Company projects a total of 210 FTE positions in production, and 21
construction workers.
As previously announced, the financing enables the Company to
increase its production capacity to approximately 12,000 kilograms
of cannabis per year by the end of 2019. The Company plans to
allocate approximately $15.9 million
specifically for the construction of approximately 336 of Delta 9's
self-designed 'grow pods' in 2018 and 2019.
It is anticipated that the Company will spend $5,700,000 building 112 grow pods in 2018 and
$10,200,000 to build an additional
224 grow pods in 2019. Of those pods, it is expected 312 will be
used as producing pods which each produce approximately 30 to 32
kilograms of cannabis per year.
The remaining 24 pods will be 'support pods' designated for use
as mothering or cloning rooms which will not produce cannabis for
sale by the Company. The Company may also allocate additional
revenue from the sale of cannabis and other current working capital
to building additional grow pods during 2018, 2019 and beyond.
"The grow pods we've designed over the past two years represent
a great return on capital investment, and we're very excited to
move into full-scale construction this year," says Arbuthnot. "Each
of these pods costs only $40,000 to
retrofit and install, including related expenses, but each can
produce between $225,000 and
$240,000 in annual revenue."
Delta 9's revenue estimates are based on an average sales price
of $7.50 per gram of cannabis. By the
end of 2018, the Company estimates that it will be in a position to
generate more than $75 million in
annual revenue from the sale of cannabis.
"This expansion empowers our commitment to reliably supply the
Manitoba market with cannabis
products that are produced here in Winnipeg, and it will create hundreds of
full-time, quality jobs in our province," Arbuthnot says. "These
developments are great for our shareholders, but we're equally
happy to see they are also creating economic benefits for our
friends and neighbours in the Province of Manitoba."
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 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: (i) Delta 9's expansion plans; (ii) Delta 9's production of
cannabis; (iii) the price to be received by Delta 9 per gram of
cannabis; (iv) demand for Delta 9's products; (v) Delta 9's cost to
produce its grow pods; and (vi) the number of employees of 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 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.