WINNIPEG, Oct. 24, 2018 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: NINE) (OTC: VRNDF) ("Delta 9" or the "Company"), through its
Delta 9 Cannabis Store subsidiary, logged close to 9,600
transactions in the first seven days after legalization of cannabis
on October 17, totaling $736,124 in revenues up to the end of day on
Tuesday this week.
The vast majority of revenues are attributable to sales of dried
cannabis products, with the remaining coming from the sale of
ancillary products and accessories. Average selling price per gram
of dried cannabis sold over the first seven days of sales was
approximately $11.47, with the
average cost of sales for a gram at approximately $8.64.
"The first day of legal recreational cannabis sales blew
away all of our expectations," said John
Arbuthnot, Chief Executive Officer. "We launched online
sales of cannabis just after the stroke of midnight on October 17, and in the first minute logged more
than 100 sales to customers in Manitoba. By 4
a.m., we had sold out all the product set aside for online
sales, but even that was nothing compared to the experience at our
first retail store in Winnipeg."
Despite restricting online sales to 10 per cent of the Company's
initial in-store inventory, Delta 9 logged 1,583 online orders, of
which 961 were sent by Canada Post, and 622 were sent via Pineapple
Express for same day delivery in Winnipeg.
Chief Technology Officer Matthew
Sodomsky said Delta 9 was able to meet the massive online
demand thanks to its partnerships with Pineapple Express and
Shopify. More than 91,000 unique website visitors were logged on
the delta9.ca website, which runs on the Shopify online
platform.
"Selecting Shopify as our technology partner was definitely the
right decision." said Sodomsky. "We were able to process thousands
of orders on legalization day, while upholding our commitment to
protecting our customer's data, storing it on a 100 per cent
Canadian-hosted solution.
"Shopify is the glue between Delta 9 Cannabis and Pineapple
Express Delivery, allowing us to provide high-quality cannabis and
accessories to our customers in their homes in as little 30
minutes."
"We are excited to be working with Delta 9 to provide a tailored
customer experience to meet the unique demands of both consumers
and regulators as we power this new industry." said Loren Padelford, VP and GM at Shopify.
The Delta 9 Cannabis Store in the St.
Vital area of Winnipeg also
recorded 8,017 sales in the first five days, with revenues of
$572,454. The average online order
this week was $104, while the average
in-store order came in at $72.
The first customers for the Delta 9 Cannabis Store were seen
camping outside the shop by 6:30 p.m.
on October 16, and as the sun rose on
October 17 hundreds of eager buyers
were lined up around the building. It was just the first of several
thousand sales at the Delta 9 outlet. Long lines continued
throughout the day, extending completely around the building, with
early customers patiently waiting up to two hours to buy their
first legal, recreational cannabis products.
"We expected high volumes for both online and in-store sales,
but what happened this week went beyond even our most optimistic
projections," Arbuthnot said. "We handled close to 2,000 sales by
late afternoon, and even bigger crowds began arriving in the
evening as people started arriving after work. We were starting to
worry that everything in the vault would be cleared out by end of
day."
While outlets across Canada
have reported shortages of product, Arbuthnot says Delta 9
continues to enjoy a robust supply, particularly from its own
production facility in Winnipeg.
"We've been working very hard to increase production over the
past year, and that work is paying off now as we face huge demand
from the recreational market," said Arbuthnot. "I'm happy to say
Delta 9 has adequate supply, and we are even now preparing a large
shipment to our store and to our wholesale customers."
Delta 9 is taking in three shipments of dried bud, cannabis oil,
and gel caps from its suppliers, including Broken Coast and Canopy
Growth, and will be shipping approximately 200 kilograms of Delta 9
product to Manitoba Liquor and Lotteries later this week.
About Delta 9 Cannabis Inc.
Delta 9 Cannabis was the
fourth producer in Canada licensed
to produce legal cannabis. Delta 9 now operates its wholly-owned
subsidiary, Delta 9 Bio-Tech Inc., as 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
50 per cent of the 70,000 square foot Delta
West facility in Alberta,
and co-owns the Delta Nine cannabis retail operation. 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. Often, but
not always, forward-looking statements and information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "estimates", "intends", "anticipates"
or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. 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.
Forward Looking Statements in this release include the expectation
that Delta 9 will receive three shipments from its suppliers over
the coming week, and will be able to ship 200 kilograms of product
from its own facility. 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.
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SOURCE Delta 9 Cannabis Inc.