Mr. Ian Chadsey reports
DELTA 9 ACHIEVES MILESTONE ONE MILLIONTH RETAIL TRANSACTION
Delta 9 Cannabis Inc. has now surpassed one million transactions through its retail cannabis stores since legalization of recreational use cannabis. The company opened its first Delta 9 cannabis store on Oct. 17, 2018, and has since grown its retail store footprint to seven operating stores in the Manitoba and Alberta markets.
In addition to achieving the milestone number of transactions, the company is pleased to provide the following statistics in connection with its retail cannabis business:
Over one million in-store and on-line transactions;
- Over $50-million in-store and on-line retail revenues;
- Average transaction size of $50.20 per transaction;
- Over 1.5 million unique website visitors to the Delta 9 website;
- Over 17,000 square feet of retail store space averaging $2,021 in revenue per square foot per year;
- Average gross profit margin of approximately 26 per cent.
"We are very pleased with the revenue growth generated from our retail stores since legalization in 2018," said John Arbuthnot, chief executive officer of Delta 9. "Delta 9 has stayed focused on its strategy to vertically integrate into the retail segment and leveraging its retail business as a means to facilitate distribution of Delta-9-branded products directly to Canadian consumers."
Management believes that there are a number of benefits to pursuing a vertical integration strategy into retail sales including:
Control over a direct to consumer sales force and product distribution;
- Control over direct to consumer branding and marketing initiatives;
- Capturing additional revenues and gross margin from retail sales;
- Direct feedback from consumers regarding things such as product trends and marketing strategies.
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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