/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION
TO U.S. WIRE SERVICES/
WINNIPEG, Jan. 4, 2017 /CNW/ - The CEO of Delta 9 Cannabis
Inc. says the crackdown on marijuana legalization by the US
Department of Justice will benefit Canadian cannabis companies in
the long term.
Cannabis company stock prices fell sharply on both sides of the
border shortly after US Attorney General Jeff Sessions rescinded the policy known as the
'Cole Memo' that allows individual states to legalize cannabis,
without fear that federal prosecutors will charge companies with
trafficking.
While cannabis has been legalized in several states, it remains
an illegal, Schedule 1 drug under federal law. Today Sessions
rescinded the Cole Memo, giving US federal prosecutors complete
latitude to lay charges under federal drug laws, even in states
where cannabis has been legalized.
Delta 9 CEO John Arbuthnot says
that while both US and Canadian stock prices declined on the news,
the long-term implications are positive for Canadian cannabis
companies.
"Canada is already, without
question, the global leader in the legal cannabis industry, and
this is due largely to our own federal government's support of
sensible legalization policy," Arbuthnot says. "That support is
allowing companies to expand both in Canada and now throughout the world, whereas
American companies are being held back.
"There is a real fear about investing in US-based cannabis
companies at a time when it is possible people connected with those
companies could be prosecuted under federal drug laws."
Arbuthnot says the implications are particularly positive for
publicly traded companies north of the border.
"There is a demonstrated interest among investors globally to
invest in cannabis companies, which is only logical given the rapid
growth of this industry," Arbuthnot says. "But right now, due to
the stated US policy, Canadian companies remain the only safe haven
for cannabis investors."
Arbuthnot says Delta 9 takes no position on the US government's
decision, but does feel it will hurt the US industry while boosting
the Canadian industry.
"It's up to the United States'
government to decide what is best for their people and their
country, just as it is up to our government to decide what is best
for Canada and Canadians," he
said. "But, from a purely practical point of view, this move does
give Canadian companies a huge advantage when competing globally in
what is likely the fastest growing industry on the planet, and I
think over the long term investors in Canada, the US, and elsewhere will see that as
a major factor."
Like many other cannabis companies in Canada, Delta 9 has undertaken a massive
expansion of its production facility in Winnipeg, Manitoba. Delta 9 also submitted a
proposal on Dec. 22, 2017 to open a
chain of retail cannabis stores in Manitoba, in response to the provincial
government's Request For Proposals (RFP). "These types of
developments, where federal and provincial governments are
codifying the industry into the normal routine of business, shows
just how different the situation is in Canada as opposed to the United States," Arbuthnot said.
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.