DN:CC - Delta 9 Reports Year-end Financials for 2023

(TheNewswire)

WINNIPEG, MB – TheNewswire - April 1, 2024 – DELTA 9 CANNABIS INC. (TSX:DN) (OTC: DLTNF) (“Delta 9” or the “Company”), is pleased toannounce financial and operating results for the three-month periodand year ending December 31, 2023.

Financial Highlights for the Year Ending December 31,2023

• Net revenues of $71.1 million in 2023, an increase of12%, versus $63.2 million for the year ending December 31, 2022.

• Gross profit of $18.0 million in 2023, an increase of39%, versus $12.9 million for the year ending December 31, 2022.

• Adjusted EBITDA of $3.4 millionin 2023 versus an Adjusted EBITDA (loss) of($5.2) million for the year ending December 31, 2022.

• Loss from Operations of $(13.5) million in 2023 versusa Loss from Operations of $(20.3) million for the year ending December31, 2022.

• Cash flows provided from operations of $4.2 million in2023 versus cash flows used in operations of $3.7 million for the yearending December 31, 2022.

Financial Highlights for the Three-Month Period EndingDecember 31, 2023

• Quarterly net revenues of $17.5 million for thethree-month period ending December 31, 2023, a decrease of 1%, versus$17.6 million for the three-month period ending December 31,2022.

• Gross profit of $3.6 million for the three-month periodending December 31, 2023 versus $3.4 million for three-month periodending December 31, 2022.

• Adjusted EBITDA of $1.5 millionfor the three-month period ending December 31, 2023 compared to anAdjusted EBITDA 1 (loss) of$(1.5) million for the three-month period ending December 31, 2022.

“We are pleased to report record fourth quarter andyear end results for 2023 demonstrating the versatility of ourbusiness model with measurable improvements versus our 2022 year endresults,” said John Arbuthnot, CEO of Delta 9 Cannabis.“Challenges persist in the Canadian cannabis industry, which continues to struggle with intense competitionresulting in margin compression and affecting overall growth. Weremain confident that Delta 9 will be able to navigate the industrychallenges and return the Company to growth and profitability in thecoming quarters.”

Summary of QuarterlyResults:

1. Adjusted EBITDA is anon-IFRS measure, and is calculated as earnings before interest, tax,depreciation and amortization, share-based compensation expense, fairvalue changes and other non-cash items.

A comprehensivediscussion of Delta 9’s financial position and results of operationsis provided in the Company’s Management Discussion & Analysisfor the three-month and year ending period ending December 31, 2023filed on SEDAR and can be found at www.sedar.com .

2023 Year End Results Conference Call

A conference call to discuss the above results isscheduled for April 1, 2024. The conference call will be hosted thatday 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 & Media Contact:

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 for Forward-Looking Information

Certain statements in this release are forward-lookingstatements, which reflect the expectations of management regarding theCompany’s future business plans and other matters. Forward-lookingstatements consist of statements that are not purely historical,including any statements regarding beliefs, plans, expectations orintentions regarding the future. Forward looking statements in thisnews release include statements relating to: (i) the Company’s plansto establish cannabis distribution operations in Manitoba; and (ii)the Company’s plans to continue to expand its retail operations inCanada. Such statements are subject to risks and uncertainties thatmay cause actual results, performance or developments to differmaterially from those contained in the statements, including all riskfactors set forth in the annual information form of Delta 9dated March 28, 2024 which has been filed on SEDAR. No assurance canbe given that any of the events anticipated by the forward-lookingstatements will occur or, if they do occur, what benefits the Companywill obtain from them. Readers are urged to consider these factorscarefully in evaluating the forward-looking statements contained inthis news release and are cautioned not to place undue reliance onsuch forward-looking statements, which are qualified in their entiretyby these cautionary statements. These forward-looking statements aremade as of the date hereof 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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