Delta 9 Completes Purchase of Land and Facility

The Company has also purchased certain cannabis grow pods (the “Equipment”) from the Vendor for a price of $952,000, plus applicable taxes. The Property is located in a heavy industrial area in Winnipeg, Manitoba. The production facility of Delta 9 has been located at the Property since July, 2013.

The Vendor is a non-arm’s length party of Delta 9 due to the fact that a director of Delta 9, Joanne Duhoux-Defehr, is also a director of the Vendor and is the owner of 20 per cent of the issued and outstanding shares of the Vendor. Accordingly, the acquisition of the Property and the Equipment are considered to be a non-arm’s length party transaction and are subject to the approval of the TSX Venture Exchange (the “Exchange”). The Exchange has granted its conditional approval for the acquisition of the Property and the Equipment and final approval of the transaction is subject to certain final filings with the Exchange.

A portion of the purchase price for the Property and Equipment will be paid by the Company from funds advanced pursuant to a $12,000,000 loan and credit facility provided to the Company by the Canadian Western Bank (“CWB”).

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