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Delta 9 Cannabis Inc
Symbol DN
Shares Issued 89,213,478
Close 2020-09-28 C$ 0.55
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Delta 9 partner receives cultivation licence

2020-09-28 07:21 ET - News Release

Mr. John Arbuthnot reports

DELTA 9 ACHIEVES MILESTONE IN AGREEMENT WITH MICRO CULTIVATION PARTNER

Delta 9 Cannabis Inc. has completed its final services milestone under an agreement with another microcultivation partner, Prairie Trichomes. Prairie Trichomes is an arm's-length third party in which the company has no ownership control or interest.

As one of the company's microcultivation partners, Prairie Trichomes entered into a strategic co-operation agreement (SCA) with Delta 9 whereby Delta 9 provides services relating to the cannabis production facility design and construction, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, and other services supporting the acquisition of the Health Canada licence.

On Sept. 18, 2020, Prairie Trichomes confirmed it had reached its final milestone under the SCA and has been granted a cannabis microcultivation licence from Health Canada.

"We are delighted that Prairie Trichomes has received a Health Canada licence for 12 of our proprietary and turnkey Grow Pod systems and thrilled that they are another one of our rural farmers to become a microcultivator in Manitoba," said John Arbuthnot, founder and chief executive officer of Delta 9. "Our sales pipeline of Grow Pods and services is robust as we sell our microcultivation services to cannabis entrepreneurs looking to produce premium quality cannabis products."

The company's cannabis production methodology is based around a modular, scalable and stackable production unit called a Grow Pod, which are retrofitted standard 40-foot shipping containers. Prairie Trichomes's facility has been designed and built using this turnkey and state-of-the-art Grow Pod system. Once cultivation begins, Delta 9 plans to purchase premium quality cannabis products from Prairie Trichomes for distribution through the company's established distribution network, and through Delta 9's branded retail stores.

"We are excited about receiving our licence and expect to be growing a premium craft cannabis product by the end of October, 2020," said Dell Carritt, president and chief executive officer of Prairie Trichomes. "We have plans in place to open a cannabis retail store in Neepawa, Man., later this year which will showcase Delta 9 cannabis products and branded materials as well as other craft quality brands."

Prairie Trichomes operates a fourth-generation farm and has developed a 6,000-square-foot microcultivation facility, located in Carberry, Man. The warehouse is only half utilized with the 12 new grow pods in place which provides room for expansion. The Carritt family are experienced farmers who are excited to be a part of a new and growing industry. They became interested in growing cannabis to produce a premium cannabis crop year-round and provide additional jobs in rural Manitoba.

About Delta 9 Cannabis Inc.

Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. 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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