Delta 9 Reports Financials for Q3 2021

WINNIPEG, Manitoba, Nov. 15, 2021 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month and nine-month period ending September 30, 2021.

Financial Highlights for the three-month period ending September 30, 2021

• Net revenue of $15.2 million for the third quarter of 2021, an increase of 16%, from $13.1 million for the same quarter last year.
• Gross profit of $4.8 million for the third quarter of 2021, an increase of 55%, from $3.1 million for the same quarter last year.
• Net loss from operations of $(55,031) for the third quarter of 2021 versus a loss from operations of $(4,578,729) for the same quarter last year.
• Adjusted EBITDA of $191,056 for the third quarter of 2021 versus an adjusted EBITDA of $210,756 million for the same quarter last year.

Financial Highlights for the nine-month period ending September 30, 2021

• Net revenue of $45.2 million for the first nine months of 2021, an increase of 19%, from $37.9 million for the same period last year.
• Gross profit of $13.4 million for the first nine months of 2021, an increase of 16%, from $11.6 million for the same period last year.
• Net loss from operations of $(4.1) million for the first nine months of 2021 versus a net income loss from operations of $(2.7) million for the same period last year.
• Adjusted EBITDA of $1.4 million for the first nine months of 2021 versus an adjusted EBITDA of $1.4 million for the same period last year.

“We were pleased to be recognized by the Globe and Mail’s annual survey as the 7th fastest growing company in Canada with a three-year revenue growth rate of 5,413%. Delta 9’s annual revenues have grown from less than $1 Million in 2017 to over $52 Million in 2020, and we continue to see growth trending in 2021,” said John Arbuthnot, CEO. “In the third quarter of 2021 we have seen a degree of seasonality and timing issues relating to provincial government’s purchasing patterns affecting our wholesale business and impacting sequential revenue growth. We remain bullish that the remainder of 2021 looks to outperform last year’s results.”

3^nd Quarter and Subsequent Operational Highlights

• Delta 9 renewed its normal course issuer bid (NCIB). Under the NCIB, the Company can purchase: (i) up to an aggregate of 6,827,032 common shares of the public float; and (ii) up to an aggregate of $1,180,000 principal amount of 8.5% unsecured convertible debentures of the Company. The Company sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares and Debentures may not fully reflect the value of the Common Shares and Debentures. The Company believes that, in such circumstances, the purchase of Common Shares and Debentures represents an accretive use of capital.

• Delta 9 placed 7th on the 2021 Globe and Mail’s Report on Business ranking of Canada’s Top Growing Companies. Delta 9 Cannabis earned its spot with a three-year revenue growth rate of 5,413% with revenues growing from under $1 million in 2017 to $52 million in 2020. The editorial ranking aims to celebrate entrepreneurial achievement in Canada by identifying and amplifying the success of growth-minded, independent businesses in Canada.

• Delta 9 opened four cannabis retail stores this quarter with two in Edmonton, Alberta, and two in Manitoba, (Winnipeg and Selkirk). Delta 9 now has 16 operating cannabis retail stores with eleven in Manitoba, four in Alberta and one in Saskatchewan. Delta 9 continues to make progress on its goal of having 20 stores open in the near term. Delta 9 will accomplish this through select strategic acquisition targets and a focus on retail store build-outs at convenient and high traffic shopping locations. This growth strategy has been a successful part of the Company’s overall vertical integration strategy.

• Delta 9 entered into a partnership with Cultivatd to compliment the Company’s B2B sales team by helping to target Grow Pod sales opportunities in Canada and the United States. Cultivatd is an indoor farming technology broker that connects people and businesses with the proper vertical farming technology for their needs. Cultivatd currently has $200 million of quotes in the pipeline with prospective clients in Canada, the United States and Australia.

Summary of Quarterly Results:

A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the three-month and nine-month period ending September 30, 2021 filed on SEDAR on November 15, 2021 and can be found at www.sedar.com.

2021 Third Quarter Results Conference Call

A conference call to discuss the above results is scheduled for November 15, 2021, pre-market. The conference call will be hosted that day at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: [email protected]

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9’s shares trade on the Toronto Stock Exchange under the symbol “DN” and on the OTCQX under the symbol “DLTNF”. For more information, please visit www.delta9.ca.

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. Forward looking statements in this news release include statements relating to: (i) the Company’s plans to establish a chain of cannabis retail stores across Canada; and (ii) the anticipated production capacity of the Company’s planned cannabis processing center. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 31, 2021 which has been filed on SEDAR. 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. 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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About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.