Delta 9 Announces Notice of Sales and Investment Solicitation Process for Delta 9 Bio-Tech Inc.
WINNIPEG, MB – August 14, 2024 – DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) (“Delta 9” or the “Company”) announces that on July 24, 2024, the Court of King’s Bench of Alberta (the “Court”) has granted an order approving a sales and investment solicitation process (the “SISP”) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of the assets of the business of its wholly-owned subsidiary, Delta 9 Bio-Tech Inc. (“Delta 9 Bio-Tech”) (the "Opportunity"). The SISP was approved contemporaneously with an amended and restated initial order under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) granted to the Company by the Court of King’s Bench of Alberta (the “Court”)
The Opportunity may include one or more of a restructuring, recapitalization or other form or reorganization of the business and affairs of Delta 9 Bio-Tech as a going concern, or a sale of all, substantially all, or one or more components of Delta 9 Bio-Tech’s assets (the "Property") and business operations (the "Business") as a going concern or otherwise.
The Property includes a 95,000 square foot, Health Canada approved cannabis production facility located at 760 Pandora Avenue East, Winnipeg, Manitoba. The Business has been able to cultivate premium quality cannabis at a cash cost of $0.60 to $0.70 per gram with an industry-competitive cost structure (favourable labour, land-leasing, and power cost). Further, management of the Company believe that an opportunity exists for modest capital investment to expand production and further reduce costs.
Interested parties wishing to pursue the Opportunity are to submit a formal binding offer to Alvarez & Marsal Canada Inc., the monitor appointed pursuant to the CCAA (the “Monitor”), in accordance with the SISP, by 5:00 p.m. (Mountain Time) on October 28, 2024.
Copies of the SISP procedure document and other Court filed materials are available at: https://www.alvarezandmarsal.com/delta9.
Interested parties who wish to obtain additional information and participate in the SISP may contact the Monitor at: delta9@alvarezandmarsal.com.
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. 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 a 95,000 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. For more information, please visit https://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. 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 with respect to the outcome of the SISP, any future decisions by the Court, the results of the CCAA proceedings and any future operations of the >Company, as well as all risk factors set forth in the annual information form of Delta 9 dated March 28, 2024 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.
The Opportunity may include one or more of a restructuring, recapitalization or other form or reorganization of the business and affairs of Delta 9 Bio-Tech as a going concern, or a sale of all, substantially all, or one or more components of Delta 9 Bio-Tech’s assets (the "Property") and business operations (the "Business") as a going concern or otherwise.
The Property includes a 95,000 square foot, Health Canada approved cannabis production facility located at 760 Pandora Avenue East, Winnipeg, Manitoba. The Business has been able to cultivate premium quality cannabis at a cash cost of $0.60 to $0.70 per gram with an industry-competitive cost structure (favourable labour, land-leasing, and power cost). Further, management of the Company believe that an opportunity exists for modest capital investment to expand production and further reduce costs.
Interested parties wishing to pursue the Opportunity are to submit a formal binding offer to Alvarez & Marsal Canada Inc., the monitor appointed pursuant to the CCAA (the “Monitor”), in accordance with the SISP, by 5:00 p.m. (Mountain Time) on October 28, 2024.
Copies of the SISP procedure document and other Court filed materials are available at: https://www.alvarezandmarsal.com/delta9.
Interested parties who wish to obtain additional information and participate in the SISP may contact the Monitor at: delta9@alvarezandmarsal.com.
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. 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 a 95,000 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. For more information, please visit https://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. 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 with respect to the outcome of the SISP, any future decisions by the Court, the results of the CCAA proceedings and any future operations of the >Company, as well as all risk factors set forth in the annual information form of Delta 9 dated March 28, 2024 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.
