DN:CC - Delta 9 to Supply Bulk Cannabis to Leading Canadian Licensed Producer
(TheNewswire)
WINNIPEG, MB – TheNewswire - January 23, 2024 –DELTA 9 CANNABIS INC. (TSX:DN) (OTC:DLTNF) (“Delta 9” or the“Company”), is pleased to announce that it has entered into aSupply Agreement (the “Supply Agreement”) for the sale of bulkcannabis flower with a leading Canadian Licensed Producer (the“LP”).
Under the terms of the Supply Agreement the Companywill cultivate select cannabis cultivars for the LP based on a rollingtwelve month forecast. Over the first twelve months of the SupplyAgreement the Company anticipates a contract value of$4,620,000.
“This contract is pivotal for Delta 9 as we begin tosee a strengthening of demand in the domestic market for high qualitycannabis flower,” said Alexa Goertzen, Vice President of CannabisSales. “As a low-cost producer, Delta 9 is well positioned to offerour bulk customers attractive contract growing opportunities. We arecontinuing to grow our bulk wholesale business as consistent andprofitable opportunities present themselves.”
On January 9, 2023, the Company announced that it wouldbe reducing its cultivation capacity at it’s Winnipeg basedfacilities by approximately 40%, from 10,000 kilograms to 6,000kilograms annually. The Company anticipates increasing its cultivationcapacity in 2024 to 10,000 kilograms annually, in order to meet itscommitments under the Supply Agreement. The Company plans to make itsfirst scheduled shipment under the Supply Agreement in the secondquarter of 2024.
For more information contact:
Investor & MediaContact:
Ian Chadsey, VP CorporateAffairs
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.invest.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. Forward lookingstatements in this news release include; (i) statements relating tothe Company’s intent to supply cannabis under the Supply Agreement,(ii) the anticipated contract value of the Supply Agreement, and (iii)the Company’s intent to increase the cultivation capacity of its Winnipeg basedfacilities. Such statements are subject to risks and uncertaintiesthat may 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 30, 2023 which has been filed on SEDAR. Noassurance can be given that any of the events anticipated by theforward-looking statements will occur or, if they do occur, whatbenefits 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.
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