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Delta 9 Cannabis Inc
Symbol DN
Shares Issued 100,950,294
Close 2020-12-22 C$ 0.54
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Delta 9 Cannabis cheers Alicanto's new cannabis licence

2020-12-22 18:08 ET - News Release

Mr. John Arbuthnot reports

DELTA 9 ACHIEVES MILESTONE IN AGREEMENT WITH MICRO CULTIVATION PARTNER

Delta 9 Cannabis Inc. has completed its final services milestone under an agreement with Manitoba-based microcultivation partner, Alicanto Gardens Ltd. Alicanto is an arm's-length third party in which the company has no ownership control or interest.

On Dec. 18, 2020, Alicanto confirmed it had reached its final milestone under the strategic co-operation agreement (SCA) and has been granted its cannabis microcultivation licences from Health Canada.

As one of Delta 9's microcultivation partners, Alicanto entered into a strategic co-operation agreement 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 Alicanto brand, and other services supporting the acquisition of the Health Canada licence.

"We are thrilled that Alicanto has received a Health Canada licence for 12 of our proprietary and turnkey 'grow pod' systems and has already received approval from the RM of Morris, Man., to build out a second production facility 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 are based on retrofitted 40-foot shipping containers. Alicanto's production 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 Alicanto for distribution through the company's established distribution network, and through Delta 9's branded retail stores. Delta 9 has now successfully licensed over 100 grow pods in third party facilities across Canada.

"Alicanto is a family-owned and self-funded boutique cannabis grower based in Manitoba with plans to service the recreational market in Western Canada," said Alicanto owner Waldemar Heidebrecht. "We have been able to leverage an existing 4,000-square-foot warehouse facility from a previous business venture and convert it to a state-of-the-art production facility that incorporates all the latest technology for growing cannabis."

Alicanto has developed a state-of-the-art microcultivation facility on an 80-acre parcel of land, about 10 minutes from Morris and an hour south of Winnipeg. This new facility houses a microcultivation licence, including 12 new grow pod systems, and a proprietary craft growing approach developed by Delta 9. Alicanto's initial plan is to focus on growing a single strain of high THC before it expands its product offering.

The well-rounded Alicanto team has a strong entrepreneurial background, with extensive experience in building a $50-million distribution business from the ground up over the last decade. The Alicanto team is committed and passionate about growing premium craft cannabis and looks forward to building a leading craft cannabis company in Manitoba.

About Delta 9 Cannabis Inc.

Delta 9 Cannabis 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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