WINNIPEG, Oct. 10, 2018 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: NINE) (OTC: VRNDF) ("Delta 9" or the "Company") is pleased
to announce the Company is this week fulfilling its first bulk
bottled order of legal, recreational cannabis to Manitoba Liquor
and Lotteries (MBLL).
Under its agreement with the Government of Manitoba Delta 9 is
not currently revealing the size of the shipment or the price per
gram.
However, CEO John Arbuthnot says
this first order represents a significant "first order" of the
Company's 2.3 million gram Supply Agreement with MBLL.
"We are now shipping in a single day what we would have shipped
over a period of months under the medical cannabis program," said
Arbuthnot. "We've always known the recreational market would be
large, but it is still staggering to see orders of this magnitude
being loaded at the warehouse door."
The shipment is being made as Delta 9 and the MBLL prepare for
legalized recreational cannabis in the province, beginning on
October 17. The current shipment is
slated to arrive at the MBLL warehouse on October 10th or shortly thereafter, so that MBLL
will have stock on hand to supply retail outlets.
Delta 9 also holds a license to open recreational cannabis
retail stores in the Province, and two of those stores have been
approved to open in Winnipeg and
Thompson through 'Site Specific
License Agreements' with the Provincial Government. The Company is
awaiting approval on two more retail outlets located in
Brandon and the Osborne Village
area of Winnipeg.
Since Delta 9 is also a retailer of cannabis in the Province,
some of the cannabis being shipped to MBLL this week will be
repurchased by Delta 9 for sale in its retail outlets, or in stores
operated by Delta 9's partner, Canopy Growth. The Delta 9 retail
stores will also carry a variety of products from Canopy
Growth.
Arbuthnot also released an update on the Company's expansion
project at its main production facility in Winnipeg, saying production is ramping up very
rapidly to meet demand.
"By December we will have approximately 150 of our proprietary
Delta 9 Grow Pods installed, and our new support and harvesting
areas will also be finished," Arbuthnot said. "More importantly, we
are on track and under budget in our current project to build out
600 Grow Pods by the end of 2019, increasing our production
capacity to 17,500 kilograms per year in Manitoba."
Those figures do not include the expansion at the Delta West
facility in Calgary, which is
being co-developed by Delta 9 and Westleaf Cannabis.
The first order from MBLL comprises four different Delta 9
strains, those being Afghani Kush, Diesel, Blue Venom and Sensi
Star.
About Delta 9 Cannabis Inc.
Delta 9 Cannabis was the
fourth producer in Canada licensed
to produce legal cannabis. Delta 9 now operates its wholly-owned
subsidiary, Delta 9 Bio-Tech Inc., as a licensed producer of
medical marijuana pursuant to the ACMPR and operates an 80,000
square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 also owns
50 per cent of the 70,000 square foot Delta West facility in
Alberta, and co-owns the Delta 9
Cannabis Store retail operation. Delta 9's shares trade on the TSX
Venture Exchange under the symbol "NINE".
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. Often, but
not always, forward-looking statements and information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "estimates", "intends", "anticipates"
or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved.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.
Forward Looking Statements in this release include the prediction
that the Company's expansion to 600 Grow Pods will be complete by
the end of 2019; that annualized production will total
approximately 17,500 kilograms annually when that expansion program
is complete; that 150 Grow Pods will be complete by the end of
2018; and that the Company is awaiting approval on two retail store
licenses. 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.
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SOURCE Delta 9 Cannabis Inc.