/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
WINNIPEG, April 19, 2018 /CNW/ - Delta 9 Cannabis Inc.
(TSXV:NINE) ("Delta 9" or the "Company") is pleased to announce
that it has entered into a limited partnership agreement with
Westleaf Cannabis Inc. ("Westleaf") and Delta West Inc. for the
joint development of a large-scale cannabis production facility
located in Southern Alberta (the
"Project"). The entering into of a non-binding letter of intent in
connection with the Project was previously announced by the Company
on January 24, 2018. Delta West Inc.
acts as general partner of the limited partnership formed by Delta
9 and Westleaf.
Delta 9 and Westleaf each own a 50% interest in the Project and
will each initially contribute $3
million to the limited partnership, to be used together with
debt financing, for initial development of the Project. The Project
includes the planned retrofit of an existing building that will be
equipped to support indoor cannabis cultivation, research and
development, processing, and extraction operations as well as house
a fulfillment centre to supply Canadian and global markets.
Certain cannabis genetics product will be provided to the
Project by Delta 9. Westleaf Cultivation Management II Inc., a
wholly owned subsidiary of Westleaf, will act as manager of the
Project. The Project is expected to be operational as early as the
third quarter of 2018.
"We said last year we would be focusing heavily on expanding our
footprint in the Prairie Provinces, and this partnership with
Westleaf to build an Alberta
facility is our biggest step yet in achieving that goal," said
Delta 9 CEO John Arbuthnot.
"Westleaf has an excellent team in place, and combined with our
experience and proprietary technology, I believe the Delta West
facility will add great value for our shareholders as legalization
of cannabis proceeds this summer."
Westleaf president and co-founder Scott
Hurd says the "Delta West" facility located in Calgary will be a world-class indoor
cultivation, R&D, processing, extraction and fulfillment centre
which will be capable of growing premium cannabis flower and
producing a diversified derivative product offering to supply the
Canadian and global markets.
"Formalizing our partnership with Delta 9 is an important
milestone for both our respective companies," said Westleaf
President and co-founder Scott Hurd.
"This strategic partnership allows us to accelerate our growth
plans to become a leader in cannabis in the Canadian Prairie
region, with a vertically integrated presence across Alberta, Saskatchewan and Manitoba. Our goal is for the 'Delta West'
facility located in Calgary,
Alberta to be a world-class indoor cultivation, R&D,
processing, extraction and fulfillment centre which will be capable
of growing premium cannabis flower and producing a diversified
derivative product offering to supply the Canadian and global
markets."
The Delta West Project is expected to be operational as early as
the third quarter of 2018.
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 also holds a conditional license for retail cannabis stores in
Manitoba. Delta 9's shares trade
on the TSX Venture Exchange under the symbol "NINE".
www.delta9.ca
About Westleaf Cannabis Inc. Westleaf is a private
vertically integrated cannabis company headquartered in
Calgary, Alberta. In addition to
the Alberta Project, Westleaf is developing a cannabis production
facility in Saskatchewan. Westleaf
and its affiliates are pursuing retail distribution in both
Alberta and Saskatchewan. For more information please
contact info@westleaf.com or visit our website at
www.westleaf.com
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 details and anticipated timing of the completion of the
Project; (ii) the licensing of the Project; (iii) sales of cannabis
produced by the Project; (iv) conditions required to complete the
Project; and (v) the future development plans of Westleaf. 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.