/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
WINNIPEG, March 27, 2018 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce
that the Company has signed a non-binding letter of intent
(the "LOI") with CanPharma GMBH ("CanPharma") and Global Group
Kalapa S.L. ("Kalapa") for the exportation of medical cannabis to
Germany.
Manitoba-based Delta 9 is one
of Canada's oldest medical
cannabis companies, being the fourth company in Canada awarded a License to Produce under the
Access to Cannabis for Medical Purposes Regulations.
Kalapa is based in Barcelona,
Spain and owns a number of subsidiary companies, including a
cannabidiol extracts (CBD) production and distribution company and
the Kalapa Clinic, the first European consultancy focused on
medical co-treatment with cannabinoids. Kalapa is a joint venture
partner with CanPharma, a Berlin-based firm that is attempting to
acquire a cannabis import license for its operations in
Germany.
Under the LOI, Delta 9 has agreed to export a minimum of 40
kilograms of cannabis a month (480 kilos per year) and an
additional amount of cannabis extracts to CanPharma for sale to
medical cannabis patients in Germany. The agreement would also commit Delta
9 to provide additional cannabis for the German market in such
amounts as may be mutually agreed by the parties.
Delta 9 CEO John Arbuthnot says
the agreement with Kalapa is part of the Company's continual
development of markets for its cannabis-related products. "We've
successfully bid for a retail license in Manitoba, we've established ourselves in
Alberta, we've acquired national
distribution agreements, and now our focus is on establishing the
Delta 9 brand abroad, beginning in Europe," Arbuthnot said. "We feel very
fortunate to be working with a pioneer in cannabinoid treatment in
the European Union, and very much look forward to expanding our
business together."
Dr. Henrik Sprengel, CEO of
Kalapa, says the Delta 9 partnership reflects the strategic
importance that Kalapa assigns the German market. "When medical
cannabis was legalized in March 2017
only about 1,000 patients had a special authorization from the
German cannabis agency (Bundesopiumstelle)," Sprengel said. "But
estimates at the beginning of 2018 show rapid growth, with more
than 30,000 cannabis patients existing in Germany today. Especially in Germany we have experienced a sharp increase
in the number of requests for consultations with our doctors, so we
are very keen to offer the best cannabinoid therapies possible to
this growing client base."
The LOI is a first step in establishing a binding formal export
agreement with Kalapa and CanPharma. Before signing a formal export
agreement, Delta 9 must: (i) acquire a Dealer License from Health
Canada in order to legally export cannabis; (ii) acquire a Good
Manufacturing Practices (GMP) certification; and (iii) satisfy an
onsite audit of production practices by German authorities. In
addition, the execution of the formal export agreement is subject
to the completion of satisfactory due diligence by all parties.
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". See more
at http://delta9.ca
About Global Group Kalapa SL and CanPharma GMBH
Global
Group Kalapa SL (www.kalapa-project.com) is a holding company
based in Barcelona, Spain. It is
owner of Kalapa Clinic - the first pan-European medical consultancy
specializing in treatments with cannabinoids - as well as of KSK
Labs, a producer and manufacturer of products based on CBD. Kalapa
furthermore is a joint venture partner in other projects with
medicinal cannabis, one of them being CanPharma (www.canpharma.de),
an applicant for an import and distribution license in Germany.
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) the execution of a formal export agreement with CanPharma
and Kalapa; (ii) Delta 9's acquisition of all required permits and
licenses necessary to export cannabis products; and (iii) the size
of the medical cannabis market in Germany. 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.