Delta 9 Announces Filing of Amended and Restated Financial Statements and MD&A for Q1 2019
WINNIPEG, MB, July 5, 2019 – Delta 9 Cannabis Inc. (“Delta 9” or the “Company”) (TSXV: NINE) (OTCQX: VRNDF) announces today that it has filed amended and restated interim financial statements and management’s discussion and analysis for the quarter ended March 31, 2019 (collectively, the “Amended Filings”). The Amended Filings are available on SEDAR at www.sedar.com.
The Company has filed the Amended Filings to correct the amount of the consideration received by the Company from the sale (the “Westleaf Sale”) of its 50% interest in the Delta West Limited Partnership (the “Partnership”) to Westleaf Inc. (“Westleaf”). Pursuant to the Westleaf Sale, the Company received consideration of 5,600,000 common shares of Westleaf (the “Westleaf Shares”) from Westleaf for its interest in the Partnership. In its initial interim financial statements and management’s discussion and analysis for the quarter ended March 31, 2019, the Company valued the 5,600,000 Westleaf Shares at $2.67 per Westleaf Share. This was the closing price of the Westleaf Shares on the TSX Venture Exchange on January 25, 2019, the trading day prior to the announcement of the Westleaf Sale on January 28, 2019. Based on this share price, the Westleaf Sale resulted in sale proceeds of approximately $14.95 million to the Company. It has since come to the attention of the Company that the 5,600,000 Westleaf Shares should have been valued as at the date of closing of the Westleaf Sale, which was January 31, 2019. On January 31, 2019, the closing price of the Westleaf Shares on the TSX Venture Exchange was $3.60 per Westleaf Share, which reflects sale proceeds of approximately $20.16 million to the Company. The Amended Filings reflect this revised amount received by the Company from the Westleaf Sale.
As a result of the change to the amount of the consideration received by the Company from the Westleaf Sale:
- The Company’s accumulated deficit as at March 31, 2019 was reduced from $9,936,571 to $4,728,571 and accumulated other comprehensive loss as at March 31, 2019 was increased from $2,240,000 to $7,448,000. There was no change to total shareholders’ equity.
- The Company’s net income for the three month period ended March 31, 2019 was increased from $11,106,345 to $16,314,345, other comprehensive loss for the three month period ended March 31, 2019 was increased from $2,240,000 to $7,448,000 and basic and diluted earnings per share for the three month period ended March 31, 2019 was increased from $0.13 to $0.19. There was no change to total comprehensive income.
About Delta 9:
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 marijuana pursuant to the ACMPR 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 Venture Exchange under the symbol "NINE" and on the OTC under the symbol VRNDF. For more information, please visit delta9.ca.
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