WINNIPEG, Manitoba, Jan. 06, 2020 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX:DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to provide investors with an update on its business to business (“B2B”) activities including sales of its proprietary “Grow Pod” systems, sales of cannabis genetics, and licensing and consulting services. These value-added B2B offerings provide Delta 9 with a diversified revenue stream.
During 2019, the Company invested in creating a stand-alone business unit for its B2B activities and has cultivated relationships across Canada. For the year ending December 31, 2019, Delta 9 received orders for 89 Grow Pods versus orders for 6 Grow Pods for the year ending December 31, 2018. These orders represented approximately $5.6 million in anticipated revenues from Grow Pod sales versus $0.24 million in the previous year.
“We have seen significant growth in our B2B segment over 2019. Our goal is to create an eco-system for cannabis entrepreneurs to cultivate premium craft cannabis using Delta 9’s Grow Pods, to provide them with consulting and licensing services, and to bring their products to market through Delta 9’s distribution channels,” said John Arbuthnot, CEO of Delta 9. “We offer a turnkey and state of the art solution for micro cultivators who in turn compliment our supply chain and provide a diversified channel for additional revenue.”
Grow Pods are 320 sq. ft. steel shipping containers that have been repurposed to support any growing methodology. Each Grow Pod can produce approximately 32 kg. of cannabis annually. The Grow Pods can be customised for flowering, trimming, cloning, research, testing, support and storage. The Grow Pods produce a standardized, quality assured product in a secure, low-risk environment.
Delta 9 has one of the largest selections of cannabis genetics in the industry and has a current offering of over 20 different varieties of cannabis for sale. The Company has packaged genetics offering for licensed third-party producers looking to expand their product line.
As a long-time licensed producer, Delta 9 has over six years’ experience in all aspects of Health Canada licensing and compliance procedures. As part of its B2B activities, Delta 9 provides licensing and consulting services to new and pre-licensed cannabis producers.
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca
About Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. 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, Manitoba, 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 TSX under the symbol "DN" and on the OTCQX under the symbol “VRNDF”. For more information, please visit www.delta9.ca.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.
Forward looking statements in this news release include statements relating to Delta 9’s anticipated revenue from Grow Pod sales. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including the Company’s actual revenue from Grow Pod sales being different from its estimates as well as all risk factors set forth in the annual information form of Delta 9 dated April 30, 2019 which has been filed on SEDAR.
No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.