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Delta 9 Cannabis Inc
Symbol DN
Shares Issued 89,213,478
Close 2020-10-13 C$ 0.56
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Delta 9 partner VIRG receives Health Canada licence

2020-10-13 18:11 ET - News Release

Mr. Ian Chadsey reports


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

As one of Delta 9's microcultivation partners, VIGR entered into a strategic co-operation agreement (SCA) with the company, 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, marketing services to develop the VIGR brand, and other services supporting the acquisition of the Health Canada licence.

On Oct. 2, 2020, VIGR confirmed it had reached its final milestone under the SCA and has been granted its cannabis microcultivation licences from Health Canada.

"We are delighted that VIGR has received a Health Canada licence for 24 of our proprietary and turnkey grow pod systems, and will now begin cultivation of craft quality cannabis," said John Arbuthnot, founder and chief executive officer of Delta 9. "Our turnkey platform for grow pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services."

The company's cannabis production methodology is based around a modular, scalable and stackable production unit called a grow pod, which is based on retrofitted 40-foot shipping containers. VIGR'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 VIGR for distribution through the company's established distribution network and through Delta 9's branded retail stores. Delta 9 has now successfully licensed over 60 grow pods in third party facilities across Canada.

"We are pleased to be receiving our Health Canada licences and expect to be growing unique strains of premium craft cannabis product by the end of October, 2020," said Rick Turchet, president and chief executive officer of VIGR. "The entire VIGR team is extremely grateful for Delta 9's support and encouragement, and I commend their attention to detail in helping us establish our first microcultivation facility in record time. We look forward to bringing our premium craft cannabis flower to customers across the Delta 9 network of retail locations very soon."

VIGR has developed a state-of-the-art microcultivation facility, located in Regina, Sask. This new facility houses two adjacent microcultivation licences, including 24 new Grow Pod systems, and a proprietary craft growing approach developed by VIGR. VIGR expects this first facility to be the first step in a more significant growth plan, as it builds Saskatchewan's leading craft cannabis company.

The well-rounded VIGR team has a strong entrepreneurial background, with an executive team that also has experience financing and growing start-up companies. With VIGR's additional experience in natural health products, it is well positioned to bring new innovations to the Canadian cannabis market. The VIGR team is committed and passionate about growing premium craft cannabis and looks forward to sharing more details on what customers can expect from its new offerings.

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. Delta 9's shares trade on the Toronto Stock Exchange under the symbol DN and on the OTCQX under the symbol VRNDF.

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