WINNIPEG, July 24, 2019 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company") is pleased
to announce that its subsidiary, Delta 9 Bio-Tech Inc., has entered
into a one-year white labeling agreement with Westleaf
Inc.("Westleaf") (TSX-V:WL) (OTCQB:WSLFF) to supply approximately
$4 million of cannabis derivative
products from Westleaf's large-scale extraction and manufacturing
facility located in Calgary, known
as The Plant. Under the terms of the agreement, the
deliveries of cannabis derivative products will begin on
October 1, 2019 subject to receipt of
final license approval from Health Canada for The Plant, and
will continue an initial term of one year. During this initial
year, Delta 9 will be required to purchase a minimum of
approximately $4 million of various
white labeled cannabis derivative products (subject to regulation,
such products are expected to include a mix of vape pens, gel caps,
tincture oil, and edibles) with an option to increase such amount
up to $16 million per year.
"We are looking forward to expanding our product distribution to
include cannabis derivative products with the anticipated roll out
of additional regulations this fall. When looking at our suite of
options for white labeled derivative cannabis products, Westleaf
stood out as a clear choice." said John
Arbuthnot, President and CEO of Delta 9. "Given Westleaf's
menu of existing product formulations and distribution capabilities
through their cannabis retail chain, Prairie Records, we
view this agreement as positive step in expanding our Delta 9
branded product offerings and distribution footprint."
"This is an important milestone for The Plant and for
Westleaf in securing contractual revenue," noted Scott Hurd, President and CEO, Westleaf Inc.
"This is the first of what we believe will be many derivative
product sales and manufacturing agreements for our facility, Phase
I of which is designed to process up to 65,000 kilograms of dried
cannabis flower per year." Hurd added that The Plant has an
additional 45,000 square feet of space available for expansion
which will greatly increase its capacity to formulate and produce
the next wave of cannabis derivative products such as vapes,
edibles and topicals, once they are legalized later this year.
About Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. is a vertically integrated cannabis
company focused on bringing the highest quality cannabis products
to market. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech
Inc., is a licensed producer of medical and recreational cannabis
and operates an 80,000 square foot production facility
in Winnipeg, Manitoba,
Canada. Delta 9 owns and operates a chain of retail stores
under the Delta 9 Cannabis Store brand. Delta 9's shares trade on
the TSX Venture Exchange under the symbol "DN" and on the OTCQX
under the symbol VRNDF. For more information, please visit
www.delta9.ca.
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) commencement of purchase of
cannabis derivative products form Westleaf; (ii)
changes to laws and regulations regarding cannabis products; and
(iii) Delta 9's expansion plans. 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 the Company's
actual financial results being different from its
estimates as well as all risk factors set forth in the
annual information form of Delta 9 dated April 30,
2019 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.