Mr. John Arbuthnot reports
DELTA 9 ACQUIRES SASKATCHEWAN RETAIL CANNABIS STORE
Delta 9 Cannabis Inc. has closed a transaction with Auxly Cannabis Group Inc. and Kolab Project Inc. to acquire all or substantially all of the vendors' assets relating to the operation of a retail cannabis store in Lloydminster, Sask. The acquisition is anticipated to be completed through the company's wholly owned subsidiary, Delta 9 Cannabis Store Inc., and pursuant to the previously announced purchase agreement among Delta 9 Cannabis Store Inc. and the vendors dated Aug. 31, 2020.
"We are pleased to have finalized our transaction with Auxly and Kolab to establish Delta 9's first foothold in the Saskatchewan retail cannabis market," said John Arbuthnot, chief executive officer of Delta 9. "Delta 9's strategy of vertical integration is further strengthened with the move into Saskatchewan, and unites Delta 9's Western Canada retail strategy by joining its existing Manitoba and Alberta retail presence, and expands its base for future expansion opportunities."
The purchase price paid by Delta 9 Cannabis Store relating to the transaction was $875,000, subject to customary adjustments. Of the purchase price, $750,000 was satisfied through the issuance of 1,282,270 common shares in the capital stock of the company at a deemed price of 58.49 cents per common share, which is the 15-day volume weighted average price per common share on the Toronto Stock Exchange as at the closing date for the transaction. The balance of the purchase price was paid in cash.
The final closing of the transaction remains subject to the approval of the Toronto Stock Exchange.
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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