Delta 9 Reports First Quarter 2022 Results

WINNIPEG, MB – May 16, 2022 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month period ending March 31, 2022.

Q1, 2022 Highlights:

  • The Company announced closing of transformative retail acquisition acquiring 17 cannabis retail stores in Edmonton, Alberta from Uncle Sam’s Cannabis Ltd. Delta 9 now has 35 operating retail stores and is a leading retailer of cannabis products in Canada. The Company expects the Uncle Sam’s Transaction to be accretive in 2022 and 2023 before synergies. The acquisition represents an attractive revenue multiple of approximately 0.68x annualized revenue.
  • The Company completed a strategic financing of $10 million with Sundial Growers Inc. (NASDAQ: SNDL) by way of a convertible debenture that matures on March 30, 2025 and bears an interest rate of 10% per annum. The Sundial Debenture is convertible into common shares at a conversion price of $0.35 per common share.
  • The Company announced closing of a $32 million Credit Facility with connect First Credit Union. The credit facility consists of a $23 million commercial mortgage, a $5 million M&A facility, and a $4 million working capital line of credit. The term of the facility is for 5 years and amortized over a 12-year period. The funds will be used to pay down $11.2 million in existing debt and $11.8 million for the Company’s existing $11.8 million convertible debenture due July 2022. To our knowledge, the new 4.55% fixed interest rate we are paying is among the most competitive rates established by any public cannabis company to date.


Financial Highlights for Q1, 2022:

  • Net revenue of $12.5 million versus $13.2 million for the three-month period ending March 31, 2021.
  • Gross profit, before changes in the fair value of biological assets, of $3.0 million versus $3.7 million for the three-month period ending March 31, 2021.
  • Net income (loss) from operations of $(2.9) million versus $(3.2) million for the three-month period ending March 31, 2021.
  • Adjusted EBITDA (loss) was $(1.7) million versus Adjusted EBITDA of $6,199 for the three-month period ending March 31, 2021.
  • The Company reported earnings per share of ($0.04) for the three-month period ending March 31, 2022.
  • The Company reported a strong financial position, with a cash position of $11.5 million, working capital of $15 million, and total assets of $106.9 million.

"Delta 9 recorded a transformative first quarter of 2022, closing on our 17-store acquisition of Uncle Sam’s Cannabis as well as a $42 million balance sheet re-structuring through a $10 million strategic investment and $32 million credit facility,” said John Arbuthnot, CEO of Delta 9. “In the first quarter of 2022 we saw a degree of seasonality and industry headwinds relating to supply chain issues and overall weakness in the Canadian cannabis market affecting our business and impacting sequential revenue growth; however, we remain bullish that the remainder of 2022 looks to be a promising year for Delta 9.”


Summary of Quarterly Results:

Consolidated Statement of Net Income (Loss)

Q2 2021

Q3 2021

Q4 2021

Q1 2022






Cost of Sales





Gross Profit Before Unrealized Gain From Changes In Biological Assets





Unrealized gain from changes in fair value of biological assets (Net)





Gross Profit















General and Administrative





Sales and Marketing





Share Based Compensation





Total Operating Expenses










Adjusted EBITDA (Loss) 1





Income (Loss) from Operations





Other Income/ Expenses





Net Income (Loss)





Basic and Diluted Earnings (Loss) Per Share






A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the first quarter ended March 31, 2022 filed on SEDAR and can be found at

Q1 Results 2022 Conference Call

Delta 9 has scheduled a conference call to discuss the results for its first quarter ended March 31, 2021. The conference call will be hosted May 16, 2022 at 12:00 p.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period.

Date                                        May 16, 2022
Time                                        12:00 p.m. ET
Dial in #                                   1-888-886-7786 - Toll free North America
Replay information:                1-877-674-6060
Replay Password                    033301#      Available until June 16, 2022

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. 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, 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 Toronto Stock Exchange under the symbol "DN" and on the OTCQX under the symbol “DLTNF”. For more information, please visit

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 financial results for the quarter ended March 31, 2021. 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 financial results being different from its estimates as well as all risk factors set forth in the annual information form of Delta 9 dated March 31, 2022 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.

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