DLTNF - Delta 9 Announces Receipt of Demand Letter from SNDL Inc.
(TheNewswire)
WINNIPEG, MB – TheNewswire - July 12, 2024 – DELTA 9 CANNABIS INC. (TSX:DN) (OTCQX: DLTNF) (“ Delta 9 ” or the “ Company ”) announces today that is has received a letter(the “Demand Letter”) from SNDL Inc. (“SNDL”) demandingrepayment of: (i) the credit facilities that were purchased by SNDLfrom Connect First Credit Union Ltd. on July 5, 2024 (the “CreditFacilities”), as previously announced by Delta 9 onJuly 8, 2024; and (ii) its 10% senior secured second-lienconvertible debenture in the principal amount of$10,000,000 (the “Convertible Debenture”), all outstanding interest thereon, and any other costs or amountsrecoverable in connection therewith. The amount claimed by SNDL to beowed by Delta 9 under the Credit Facilities is $27,868,283.94 as atJuly 5, 2024.
In the Demand Letter, SNDLalleges that Delta 9 is in default of certainobligations under the Credit Facilities and Convertible Debenture and related financing documents. Delta 9acknowledges that it is in default of certain of its obligations underthe Credit Facilities. Delta 9 plans to have discussions in the nearfuture with SNDL to address the Demand Letter.
As previously announced, Delta 9 hasestablished an independent committee of its board to examine variouspotential strategic transactions for Delta 9. Delta9 continues to have discussions with variouscounterparties with respect to potential strategictransactions.
About Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. is a vertically integratedcannabis company focused on bringing the highest
quality cannabis products to market. The Company sells cannabis products through its wholesale and retailsales channels and sells its cannabis grow pods to other businesses. Delta9 ’s wholly owned subsidiary, Delta 9 Bio-TechInc., is a licensed producer of medical and recreational cannabis andoperates a 95,000 square foot production facility in Winnipeg,Manitoba, Canada. Delta 9 owns and operates a chain of retailstores under the Delta 9 Cannabis Store brand. Delta9’s shares trade on the Toronto Stock Exchange under the symbol“DN” and on the OTC under the symbol “DLTNF”. For moreinformation, please visit www.delta9.ca.
Disclaimer forForward-Looking Information
Certain statements in this release are forward-lookingstatements, which reflect the expectations of management regarding the Company’s future business plans andother matters. Forward-looking statements consist of statements thatare not purely historical, including any statements regarding beliefs,plans, expectations or intentions regarding the future. Suchstatements are subject to risks and uncertainties that may causeactual results, performance or developments to differ materially fromthose contained in the statements, including with respect to futurenegotiations between Delta 9 and SNDL as well as all riskfactors set forth in the annual information form of Delta 9 datedMarch 28, 2024, which has been filed on SEDAR+. No assurance can begiven that any of the events anticipated by the forward-lookingstatements will occur or, if they do occur, what benefits the Company will obtain from them. Readersare urged to consider these factors carefully in evaluating theforward-looking statements contained in this news release and arecautioned not to place undue reliance on such forward-lookingstatements, which are qualified in their entirety by these cautionarystatements. These forward-looking statements are made as of the datehereof and the Company disclaims any intent orobligation to update publicly any forward-looking statements, whetheras a result of new information, future events or results or otherwise,except as required by applicable securities laws.
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