Mr. Ian Chadsey reports
DELTA 9 ANNOUNCES UPSIZE TO BOUGHT SHORT FORM PROSPECTUS OFFERING OF EQUITY UNITS
Delta 9 Cannabis Inc. has amended the terms of its previously announced offering of equity units (as defined below) under the terms of an amended agreement with Leede Jones Gable Inc. as the lead underwriter and sole bookrunner, pursuant to which the underwriter has agreed to purchase, on a bought deal basis, 9,090,910 units for gross proceeds to the company of $5,000,000.50 at a price of 55 cents per equity unit.
Each equity unit will consist of common share of the company and one-half of a common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at an exercise price of 70 cents at any time up to 36 months following closing (as defined below).
The units will be offered by way of a short form prospectus to be filed in those provinces of Canada other than Quebec as the underwriter may designate pursuant to National Instrument 44-101 -- Short Form Prospectus Distributions and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.
The net proceeds from the offering will be used for working capital and general corporate purposes.
The closing of the offering is expected to occur on or about the week of Dec. 21, 2020, and is subject to the company receiving all necessary regulatory approvals, including 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. 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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