Mr. John Arbuthnot reports
DELTA 9 PROVIDES GUIDANCE & TIMING FOR Q2 2020 RESULTS
Delta 9 Cannabis Inc. has provided guidance on select financial results of the company for the second quarter of 2020 based on preliminary results.
The company anticipates revenues for the three-month period ended June 30, 2020, to be between $12.7-million and $13.2-million, compared with:
$8.9-million for the second quarter of 2019;
$11.7-million sequentially for the first quarter of 2020.
Based on preliminary results, the company anticipates revenues for the six-month period ended June 30, 2020, to be between $24.3-million and $25.1-million, compared with $14.5-million for the same period last year.
The company anticipates direct cannabis production cost per gram of 96 cents and total cost per gram of $1.08 for the second quarter 2020, compared with:
$1.05 and $1.04, respectively, for the second quarter of 2019;
98 cents and $1.10, respectively, for the first quarter of 2020.
Delta 9 anticipates total grams of cannabis produced of 1,649,347 for the second quarter of 2020, compared with:
675,233 grams of cannabis for the second quarter of 2019;
1,198,983 grams of cannabis for the first quarter 2020.
Management believes that continued revenue growth and disciplined cost management initiatives will allow the company to continue to achieve positive cash flows from operations in fiscal 2020.
"We continue to see strong revenues from our three main business segments," said John Arbuthnot, chief executive officer of Delta 9. "Throughout the COVID-19 crisis, Delta 9 has stayed focused on its strategy of rolling out new retail stores, increasing our wholesale sell-through rates in our existing wholesale markets, as well as securing new supply contracts in Ontario and Newfoundland, and hitting critical milestones on grow pod sales."
Delta 9 will provide investors with a full breakdown on its progress in these areas as part of its second quarter results, which will be released on Aug. 14, 2020, after the close of the market. This will be followed by a conference call on Aug. 17, 2020, the details of which can be found at the end of this release.
The preliminary estimated financial results and other data for the three-month period ended June 30, 2020, set forth herein, are subject to the completion of the company's financial closing procedures. These preliminary estimated financial results have been prepared by and are the responsibility of the company's management. The company's independent registered public accounting firm, Baker Tilly HMA LLP, has reviewed these preliminary estimated financial results and other data, but did not audit or express an opinion on them.
The company currently expects that its final results of operations and other data will be consistent with the estimates set forth herein, but such estimates are preliminary, and the company's actual results of operations and other data could differ materially from these estimates due to the completion of its financial closing procedures, final adjustments and other developments that may arise between now and the time such consolidated financial statements for the period ended June 30, 2020, are issued.
Second quarter 2020 results conference call
Delta 9 will release the results for the second quarter of 2020 on Aug. 14, 2020, after the market closes. A conference call to discuss the results is scheduled for Aug. 17, 2020, premarket. The conference call will be hosted that day at 9 a.m. Eastern Time by Mr. Arbuthnot, and Jim Lawson, chief financial officer, followed by a question-and-answer period.
Date: Aug. 17, 2020
Time: 9 a.m. Eastern Time
Dial-in number: 1-888-886-7786
Replay: 1-877-674-6060 (available until 12 a.m. Eastern Time on Nov. 17, 2020)
Replay passcode: 764865 followed by the number sign
About Delta 9 Cannabis Inc.
Delta 9 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, Man., Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
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