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Delta 9 Cannabis Inc
Symbol DN
Shares Issued 101,940,350
Close 2021-03-01 C$ 0.56
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Delta 9 notes cultivation "partner" obtains licence

2021-03-01 18:11 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 Ontario-based microcultivation partner, F1NE Cannabis Cultivation Ltd. F1 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, F1 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 F1 brand, and other services supporting the acquisition of the Health Canada licence.

On Feb. 19, 2021, F1 confirmed it had reached its final milestone under the SCA and has been granted its cannabis microcultivation licences from Health Canada.

"We are delighted that F1NE Cannabis Cultivation has received a Health Canada licence for our proprietary and turnkey grow pod systems," said John Arbuthnot, founder and chief executive officer of Delta 9. "Our turn key 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. The turnkey smart-growing platforms are developed using precision hardware and software grow applications for the indoor cannabis cultivation marketplace. Delta 9 offers vertical growing units, integrated grow racks and LED grow lights; and non-proprietary products designed, engineered and manufactured by third parties, such as air cleaning systems and automated fertigation and watering systems.

F1's facility has been designed using this turnkey and state-of-the-art grow pod system. Once cultivation is harvested, Delta 9 plans to purchase the premium quality cannabis products from F1 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.

"F1NE Cannabis Cultivation is a privately owned boutique cannabis cultivator based in the Niagara region of Ontario, close to dozens of wineries along the wine route to Niagara on the lake and the Horse Shoe Falls," said Poncho Canna, president and chief executive officer of F1NE Cannabis Cultivation. "Our goal is to produce the F1NEST quality cannabis product by bringing the legacy market craft to a legal market product."

F1 has developed a state-of-the-art microcultivation facility on a 1.5-acre parcel of land situated on Lake Ontario and beside some of the world's best wine producers. F1 has applied and is expecting to receive a farm gate licence to sell its products directly to consumers traveling along the wine routes to Niagara on the lake and as part of the wine tours in the area.

The facility includes some of the latest technology surrounding climate control and grow room automation. F1 expects this facility to be the first step in a more significant growth strategy, as it makes plans to double its production by growing a smaller plant that will leave room for two levels of cannabis production per grow pod. There are also plans in place to build an outdoor garden centre for customers to buy pots, grow mediums, lights and other items to grow like the pros.

The well-rounded F1 team has a strong entrepreneurial background, with an executive team that has many years experience of growing cannabis. The F1 team is committed and passionate about growing premium craft cannabis and looks forward to rooting a leading craft cannabis company in Ontario.

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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