Delta 9 Cannabis Scores Record Revenues Ahead of TSX listing

WINNIPEG, MB – August 27, 2019 – DELTA 9 CANNABIS INC. (TSXV: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the second quarter of 2019.

Financial Highlights for Q2, 2019

  • Record operating revenues of $8.9 million for the second quarter of 2019, up 1,142%, from $715,746 for the same quarter last year.
    • Sequential net revenues increased 58% for the second quarter of 2019 compared to $5,632,184 in Q1, 2019.
  • Adjusted EBITDA[1] was $(663,705) up $1.3 million or 65% compared to $(1,978,778) in Q1, 2019.
  • Gross profit[2] of $2.9 million for the second quarter of 2019, up 780%, from $335,226 for the same quarter last year.
    • Gross profit margin was 33% for Q2, 2019.

“Management would highlight the improvement of $1.3 million in Adjusted EBITDA loss over the past two quarters as a positive indication of the performance of the Company’s operating businesses in the wake of legalization of recreational use cannabis on October 17, 2018,” said John Arbuthnot, CEO of Delta 9. “We believe our Q2 results demonstrate the continued strength of our business model as we pursue a path towards profitability and disciplined growth for this year.”

Financial Highlights for the first half of 2019

  • Record operating revenues of $14.5 million, up 1,286%, from $1.0 million for the same period last year.
  • Gross profit2 of $4.8 million, up 973%, from $444164 for the same period last year.
    • Gross profit margin was 33% for the first half of 2019.

“Delta 9 will continue to drive sustainable long-term shareholder value by leveraging its strong brand positioning in Western Canadian markets, expanding our various wholesale supply contracts and scaling up our cultivation operations said John Arbuthnot,” CEO of Delta 9. “We are taking a responsible and compliant approach to growing our business to build an authentic Delta 9 brand as we pursue retail opportunities in the Western Canadian market place.”

Operational Highlights

  • On May 20, 2019, the Company received approval from Health Canada for an additional 48 of its proprietary “Grow Pods”, bringing its total number of Grow Pods approved by Health Canada to 202.
    • The additional 48 Grow Pods will increase production by 1,150 kilograms per year of dried cannabis flower production, bringing the Company’s overall anticipated production capacity to 5,350 kilograms of dried cannabis flower per year.
  • There are now a total of 297 Grow Pods within its Winnipeg production facility (the “Delta Facility”).
  • The Company is continuing with its planned Phase II expansion of the Delta Facility to increase cannabis production to 16,500 kilograms per year.

“The 297 Grow Pods that Delta 9 now has in in our production facility will bring our anticipated production capacity to 7,626 kilograms once all the pods are approved by Health Canada for production,” said John Arbuthnot, CEO of Delta 9.

Selected Quarterly Information:

Consolidated Statement of Net Income

Q2 2019

Q2 2018




Cost of Sales



Gross Profit Before Unrealized Gain from Changes In Biological Assets



Unrealized gain from changes in fair value of biological assets



Gross Profit









General and Administrative



Sales and Marketing



Share based Compensation



Total Operating Expenses






Loss from Operations






Other Income/ Expenses



Finance Income (cost)



Rental and other income






Net Income



Other comprehensive Income



Fair value change in West leaf Investment









Net Income and Comprehensive Income






Earnings per Share (basic)



Weighted average number of shares outstanding



“Additionally, Delta 9 is looking forward to being up listed on the Toronto Stock Exchange,” said John Arbuthnot, CEO of Delta 9. “This will be a major milestone for the evolution of our company and should enhance the financial opportunities for our shareholders.”  

Consolidated Statement of Net Loss

Q2 2019

Q1 2019

Q4 2018

Q3 2018






Cost of Sales





Gross Profit Before Unrealized Gain from Changes In Biological Assets





Unrealized gain from changes in fair value of biological assets





Gross Profit (Loss)















General and Administrative





Sales and Marketing





Share Based Compensation





Total Operating Expenses










Adjusted EBITDA (Loss)





Income (Loss) from Operations





Other Income/ Expenses





Net Income (Loss)





Basic and Diluted Earnings (Loss) Per Share






The following chart provides a breakdown of the Company’s revenue by segment:

Revenue from the Sale of Cannabis

Six-month period ending June 30, 2019

Six-month period ending June 30, 2018

Three-month period ending June 30, 2019

Three-month period ending March 31, 2019

Wholesale Cannabis Revenue





Retail Cannabis Revenue





Medicinal Cannabis Revenue










Revenue from Other categories





Business to business activities





Merchandise and cannabis devices















Sub total










(Less) Excise Taxes










Net Revenue






Discussion of Operations for Q2 versus Q1, 2019:

Key Performance Indicators

For the three-month period ending March 31, 2019

For the three-month period ending June 30, 2019




Production/ Wholesale Unit



Total Grams Produced



Direct Production Cost Per Gram



Total Cost Per Gram



Total Grams Released for Sale



Total Grams Sold (Recreational Wholesale)



Total Grams Sold (Medical)



Avg Selling Price per Gram






Retail Unit



Total Grams Sold (Retail)



Avg Selling Price per Gram



Number of Transactions Processed



Avg Transaction Size






Unique Website Visitors (



A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the second quarter and first half of 2019 filed on SEDAR and can be found at

Q2 Results 2019 Conference Call

Delta 9 has scheduled a conference call to discuss the results for second quarter of 2019. The conference call will be hosted August 28, 2019 at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer and Jim Lawson, Chief Financial Officer, followed by a question and answer period.


August 28, 2019


9:00 a.m. Eastern Time




Available until 12:00 midnight Eastern Time, November 28, 2019


528211 #

For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722

 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 Venture Exchange under the symbol "DN" and on the OTCQX under the symbol VRNDF. For more information, please visit

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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: (i) increases in Delta 9’s cannabis production capacity; (ii) Delta 9’s expansion plans; and (iii) Delta 9’s graduation to the Toronto Stock Exchange. 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 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.


[1] The Company’s “Adjusted EBITDA” is a measure used by management that does not have any standardized meaning prescribed by International Financial Reporting Standards and may not be comparable to similar measures presented by other companies. Management defines the Adjusted EBITDA as the income (loss) from operations, as reported, before interest and tax, adjusted for removing share-based compensation expense, depreciation and amortization, and the fair value effects of accounting for biological assets and inventories. Management believes that Adjusted EBITDA, and the attribution of Adjusted EBITDA in the manner described above, provides meaningful and useful financial information as these measures demonstrate the performance of the Company’s operating businesses.

[2] The Company’s “Gross Profit” Is calculated before adjustments for changes in Biological assets.

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