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Delta 9 Cannabis Inc
Symbol DN
Shares Issued 89,213,478
Close 2020-10-26 C$ 0.58
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Delta 9 "partner" receives microcultivation licence

2020-10-26 18:18 ET - News Release

Mr. John Arbuthnot reports


Delta 9 Cannabis Inc. has completed its final services milestone under an agreement with Saskatchewan-based microcultivation partner Paradise Cannabis Ltd. Paradise 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, Paradise entered into a strategic co-operation agreement (SCA) with the company whereby Delta 9 provides services relating to the cannabis production facility design, 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 Oct. 23, 2020, Paradise 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 Paradise has received a Health Canada licence for 12 of our proprietary and turnkey 'grow pod' systems and will 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 a retrofitted 40-foot shipping container. Paradise'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 Paradise for distribution through the company's established distribution network, and through Delta 9's branded retail stores. Delta 9 has now successfully licensed over 72 grow pods in third party facilities across Canada.

"I would like to thank Delta 9 for providing us with a turnkey platform to grow cannabis and for their continued support as we begin production," said Doug McGillivray, president of Paradise. "We look forward to being a part of this new industry producing small batch, passionately grown, craft cannabis. You will find our premium Paradise Cannabis products at Delta 9 retail locations soon!"

Paradise has developed a state-of-the-art microcultivation facility, located south of Regina, Sask. This brand new facility houses 12 new grow pod systems. Paradise 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 Paradise team operates a sixth-generation farm with 7,800 acres and a 4,500-square-foot microcultivation facility. The team consists of experienced farmers and medical cannabis growers who became interested in growing cannabis commercially to broaden their crop output and diversify their farming operation.

The Paradise 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. 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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