Mr. Ian Chadsey reports
DELTA 9 ANNOUNCES NORMAL COURSE ISSUER BID FOR COMMON SHARES AND CONVERTIBLE DEBENTURES
The Toronto Stock Exchange has approved Delta 9 Cannabis Inc.'s normal course issuer bid (NCIB). Under the NCIB, the company can purchase: (i) up to an aggregate of 2,802,503 common shares of the company, representing 5 per cent of the public float of common shares as at Oct. 20 2020; and (ii) up to an aggregate of $1.18-million principal amount of 8.5 per cent unsecured convertible debentures of the company, representing 10 per cent of the public float of debentures as at Oct. 20, 2020.
Purchases of common shares and debentures pursuant to the NCIB may be made through the facilities of the TSX and alternative Canadian trading systems commencing on Oct. 26, 2020, and ending on Oct. 25, 2021, or an earlier date in the event that the company purchases the maximum number of the common shares and debentures available under the NCIB. The company will pay the market price at the time of acquisition for any common shares and debentures purchased through the facilities of the TSX. All common shares and debentures acquired directly by the company under the NCIB will be cancelled.
As at Oct. 20, 2020: (i) there were 90,203,534 common shares and $11.8-million principal amount of debentures issued and outstanding; (ii) 34,152,993 common shares and no debentures were held by the senior officer and directors of the company; and (iii) the public float of the company was 56,050,054 common shares and $11.8-million principal amount of debentures.
The average daily trading volume of the common shares and debentures for the six-month period ended Sept. 30, 2020, was 111,829 common shares and 43,000 principal amount of debentures. Daily purchases will be limited to 27,957 common shares and $1,000 principal amount of debentures, other than block purchase exceptions.
The company sought approval of the NCIB because it believes that, from time to time, the market price of the common shares and debentures may not fully reflect the value of the common shares and debentures. The company believes that, in such circumstances, the purchase of common shares and debentures represents an accretive use of capital.
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. 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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