/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
WINNIPEG, MB, June 29, 2018 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce
that it has entered into a cannabis supply agreement (the "Supply
Agreement" or the "Agreement") for the province of Manitoba. Pursuant to the Supply Agreement,
signed June 27, 2018, Delta 9 has
agreed to make a minimum of 2.3 million grams of cannabis available
through Manitoba Liquor and Lotteries Corporation ("MBLL") during
the first 12 months of the Supply Agreement.
Under the Supply Agreement, MBLL will supply Manitoba retailers with a range of Delta 9
products ranging from Delta 9's lower-end "House Blend" to a
selection of Delta 9's premium cannabis products.
In addition, and separately from the Agreement, Delta 9 will be
selling cannabis to other provinces, directly to customers at the
Company's network of retail stores, and to customers through its
online retail sales portal.
"We are obviously thrilled to have successfully concluded these
negotiations," said John Arbuthnot,
CEO of Delta 9. "We feel Manitoba
is the furthest ahead of any Canadian province in terms of being
ready for legalization and we also think that Manitoba will provide the best environment for
retail sales in Canada."
Arbuthnot says the Supply Agreement is another step Delta 9 has
been taking to prepare for the legal recreational market.
"Our goal for the past two years has been to position Delta 9 to
become a leader in the legal cannabis industry," Arbuthnot said.
"For this reason, our efforts have been tightly focused on creating
a vertically integrated company that earns higher margins and has
guaranteed distribution.
"Because we have both production and retail, we believe Delta 9
is very well positioned for the recreational retail market, but we
continue to work on expanding our distribution throughout
Canada and in areas of the world
where cannabis is legal for medical use."
Delta 9 has already signed an agreement for export of medical
cannabis to Germany, for example,
and the Company is currently completing a renovation of its
Winnipeg facility to meet the
standard for cannabis importation set by the German government.
On Behalf of the Board of Directors
John Arbuthnot, CEO
About Delta 9 Cannabis Inc.
Delta 9 was the fourth
company in Canada authorized as a
Licensed Producer of medical cannabis. 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 also owns
the majority share of Delta 9 Lifestyles, a company building out
recreational cannabis stores in Canada, and 50 per cent of the Delta West
production facility in Alberta.
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 sales of cannabis to MBLL; (ii) the price paid by
MBLL for cannabis from Delta 9; and (iii) the number of retail
stores to be opened by 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 annual information form of
Delta 9 dated May 31, 2018 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.