Delta 9 was the fourth company in Canada licensed to legally grow and sell cannabis under the original Marijuana for Medical Purposes Regulations. The Winnipeg company is listing on the TSX-V in order to prepare for the upcoming legalization of medical marijuana.
“Closing of the Transaction represents a significant milestone for Delta 9 as we look to aggressively expand our domestic production facilities and international opportunities,” says Delta 9 CEO John Arbuthnot. “Ultimately our goal is to raise between 25 and 30 million dollars in additional capital, through a mix of debt and equity, over the next number of months in order to meet the rising demand for our products.”
This year alone the company has constructed 28 of its self-designed ‘grow pods’, each of which produces an average of 31,500 grams of high quality cannabis annually. The current construction project is intended to build out 600 grow pods in its current 80,000 square foot building in Winnipeg.
Production capacity is expected to increase from the current 1,000 kilograms per year, to 17,000 kilograms of high grade cannabis by 2020.
“What comes with that expansion is more jobs being created in Manitoba, increased production capacity to bring on more registered patients in the short term, and also positioning ourselves for the recreational market following legalization next year,” Arbuthnot says.
As part of the transaction Delta 9 completed a brokered private placement offering of eight million common shares in the capital of the Company at a price of $0.65 per share.
Delta 9’s listing on the exchange occurs as Canada prepares for full legalization of recreational cannabis, which the Liberal government has scheduled for July 1, 2018.
Delta 9 closed a reverse takeover transaction on Oct. 31, 2017 with SVT Capital Corp. (SVT) pursuant to which SVT acquired all of the issued and outstanding shares of Delta 9 Bio-Tech Inc. The resulting issuer, Delta 9 Cannabis Inc., began trading today.
About Delta 9
Delta 9’s wholly-owned subsidiary, Delta 9 Bio-tech, is a licensed producer of medical marijuana pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) and operates an 80,000 square foot, expandable, state-of-the-art production facility in Winnipeg, Manitoba, Canada. Delta 9 shares will be trading on the TSX-V under the symbol ‘NINE’.
On behalf of the Board of Directors, DELTA 9 CANNABIS INC.
John William (Bill) Arbuthnot III,
Chairman, President and Director
Neither 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. 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 Delta 9’s future expansion plans. 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 that: the Company’s currently contemplated expansion and development plans to cease or otherwise change. 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.
SOURCE Delta 9 Cannabis Inc.
For further information: John Arbuthnot, CEO, firstname.lastname@example.org, (204) 470-8061 or Gary Symons, Director of Communications, email@example.com, 250.300.9352