17:39:06 EDT Fri 18 Jun 2021
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Delta 9 Cannabis Inc
Symbol DN
Shares Issued 90,495,748
Close 2020-12-10 C$ 0.59
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Delta 9 completes final milestone with Prairie Craft

2020-12-10 18:07 ET - News Release

Mr. John Arbuthnot reports


Delta 9 Cannabis Inc. has completed its final service milestone under an agreement with Saskatchewan-based microcultivation partner, Prairie Craft Canopy (PCC). PCC 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, PCC entered into a strategic co-operation agreement (SCA) with the company whereby Delta 9 provides services relating to the cannabis production, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, marketing services to develop the PCC brand, and other services supporting the acquisition of the Health Canada licence.

On Dec. 4, 2020, PCC confirmed it had reached its final milestone under the SCA and was granted its cannabis microcultivation licences from Health Canada.

"We are delighted that Prairie Craft Canopy has received a Health Canada licence for 12 of our proprietary and turnkey Grow Pod systems and has plans to apply for a second Health Canada licence to expand their operations that will include another 12 Grow Pods," 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 retrofitted 40-foot shipping containers. PCC'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 PCC for distribution through the company's established distribution network and through Delta 9's branded retail stores. Delta 9 has now licensed over 100 Grow Pods in third party facilities across Canada.

"Prairie Craft Canopy is a privately owned and self-funded boutique cannabis cultivator based in the Prairies with plans to service the wellness and recreational markets across Canada," said co-owners Doug Trevena and Nathan Seon of Prairie Craft Canopy. "We are proud that we took every precaution to build a state-of-the-art, 8,000-square-foot production facility that incorporates all the latest technology for growing cannabis and provides room to double the size of our operations in the future."

PCC has developed a state-of-the-art microcultivation facility on a 10-acre parcel of land, beside some of the largest agricultural-research-focused companies in North America. The facility is in the RM of Edenwold No. 158 just minutes from Regina, Sask. This new facility houses a microcultivation licence, including 12 new Grow Pod systems and a proprietary craft growing approach developed by PCC.

The facility includes some of the latest technology surrounding climate control and grow room automation. PCC plans to incorporate more innovative sustainability in future phases of expansion. PCC expects this facility to be the first step in a more significant growth strategy as it makes plans for a second microcultivation licence, and that will include another 12 Grow Pod production capability in the near term.

The well-rounded PCC team has a strong entrepreneurial background, with an executive team that has many years experience in growing start-up companies. The PCC team is committed and passionate about growing premium craft cannabis, and looks forward to building a leading craft cannabis company in Saskatchewan.

PCC expects to be in production by January, 2021, with plans to grow a unique strain of premium craft cannabis that consumers are looking for. The entire PCC team has been very happy, working with the Delta 9 team and thankful for its support and encouragement. PCC looks forward to bringing a premium craft cannabis flower to customers across the Delta 9 network of retail locations very soon in the new year.

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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