DLTNF - Delta 9 Reports Financials for Q3 2023

(TheNewswire)

Winnipeg, MB - TheNewswire - November 14, 2023 - Delta 9 Cannabis Inc. (TSX:DN)(OTC:DLTNF) (“ Delta 9 ” or the “ Company ”), ispleased to announce financial and operating results for thethree-month and nine-month period ending September 30, 2023.

Financial Highlights for thethree-month period ending September 30, 2023

• Net revenue of $18.4million for the third quarter of 2023, an increase of 18%, from $15.7million for the same quarter last year.

  • Sequential net revenue increased 1% versus $18.3million for the three-month period ending June 30, 2023.

• Gross profit of $4.9 million for the third quarter of2023, an increase of 157%, from $1.9 million for the same quarter lastyear.

• Gross profit margin of 27% for the third quarter of2023, an improvement from 12% for the same period last year.

• Cash operating expenses of $4.6 million for the thirdquarter of 2023, a reduction of $852,000 from the same period theprevious year. The Company is on pace to achieve it’s targetoperating expense reductions of $3 - $4 million annualized in 2023.

• Loss from operations of $(4.5) million for the thirdquarter of 2023 versus a loss from operations of $(6.2) million forthe same quarter last year.

• Adjusted EBITDA of $1.0 million for the third quarterof 2023 versus an adjusted EBITDA (loss) of $(1.7) million for thesame quarter last year.

Financial Highlights for thenine-month period ending September 30, 2023

• Net revenue of $53.6 million for the first nine monthsof 2023, in increase of 17%, compared to $45.7 million for the sameperiod last year.

• Gross profit of $14.4 million for the first nine monthsof 2023, versus $9.5 million for the same period last year.

• Gross profit margin of 27% for the first nine months of2023, an improvement from 21% for the same period last year.

• Cash operating expenses of $14.7 million for the firstnine months of 2023, a reduction of $1 million from the same periodlast year.

• Loss from operations of $9.2 million for the first ninemonths of 2023 versus a loss from operations of $12.6 million for thesame period last year.

• Adjusted EBITDA of $1.9 million for the first ninemonths of 2023 versus an adjusted EBITDA (loss) of $(3.8) million forthe same period last year.

• Cash flows from operations of $2.7 million for thefirst nine months of 2023.

• Repayment of $1.97 million of Borrowings for the firstnine months of 2023, resulting in annual interest payment savings ofapproximately $100,000.

“ Our team delivered a recordthird quarter with higher revenues sequentially, and year over year,and with better margins driven by the execution of our strategicplan,” said John Arbuthnot, CEO of Delta 9. “We are enjoying thegains from our retail expansion announced last year and from our costsaving initiatives announced in early January, 2023. We are deliveringon our commitment to grow revenue, drive operating efficiencies, andimprove margins and profitability, while investing in ourindustry-leading retail brands.”

Click Image To View Full Size

A comprehensive discussion of Delta 9’s financialposition and results of operations is provided in the Company’sManagement Discussion & Analysis for the three-month andnine-month period ending September 30, 2023 filed on SEDAR+ onNovember 14, 2023 and can be found at www.sedarplus.ca .

2023 Third Quarter Results ConferenceCall

A conference call to discuss the above results isscheduled for November 15, 2023. The conference call will be hostedthat day at 11:00 a.m. Eastern Time by John Arbuthnot, Chief ExecutiveOfficer, and Jim Lawson, Chief Financial Officer, followed by aquestion-and-answer period.

For more information contact:

Investor & MediaContact :

Ian Chadsey VP Corporate Affairs

Mobile :204-898-7722

E-mail :ian.chadsey@delta9.ca

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. is a vertically integratedcannabis company focused on bringing the highest quality cannabisproducts to market. The company sells cannabis products through itswholesale and retail sales channels and sells its cannabis grow podsto other businesses. Delta 9's wholly-owned subsidiary, Delta 9Bio-Tech Inc., is a licensed producer of medical and recreationalcannabis and operates an 95,000 square foot production facilityin Winnipeg, Manitoba,Canada . Delta 9 owns and operates a chainof retail stores under the Delta 9 Cannabis Store brand. Delta 9'sshares trade on the Toronto Stock Exchange under the symbol"DN" and on the OTC under the symbol "DLTNF". Formore information, please visit www.delta9.ca.

Disclaimer forForward-Looking Information

Certain statements in this releaseare forward-looking statements, which reflect the expectations ofmanagement regarding the Company’s future business plans and othermatters. Forward-looking statements consist of statements that are notpurely historical, including any statements regarding beliefs, plans,expectations or intentions regarding the future. Such statements aresubject to risks and uncertainties that may cause actual results,performance or developments to differ materially from those containedin the statements, including all risk factors set forth in the annualinformation form of Delta 9 dated March 31, 2023 which has been filedon SEDAR. No assurance can be given that any of the events anticipatedby the forward-looking statements will occur or, if they do occur,what benefits the Company will obtain from them. Readers are urged toconsider these factors carefully in evaluating the forward-lookingstatements contained in this news release and are cautioned not toplace undue reliance on such forward-looking statements, which arequalified in their entirety by these cautionary statements. Theseforward-looking statements are made as of the date hereof and theCompany disclaims any intent or obligation to update publicly anyforward-looking statements, whether as a result of new information,future events or results or otherwise, except as required byapplicable securities laws.

Copyright (c) 2023 TheNewswire - All rights reserved.