Delta 9 Exercises Option to Acquire Production Facility

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/

WINNIPEG, April 4, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce that it has exercised its option to purchase the land and 80,000 square foot building containing the Company's current cannabis production facility (the "Property") for a price of $6.25 million, subject to certain closing adjustments and conditions. Delta 9 previously announced on March 21, 2018 that it had entered into a five-year lease of the Property which contained an option to purchase and that Delta 9 anticipated quickly exercising such option.

Delta 9 has entered into a formal option agreement (the "Option Agreement") with 6599362 Canada Ltd. (the "Vendor") which sets forth the terms of the acquisition of the Property. The Option Agreement also provides that on closing of the acquisition of the Property, Delta 9 will purchase certain cannabis production equipment (the "Equipment") currently leased from the Vendor pursuant to certain lease agreements for a price of $952,000, plus applicable taxes.

The Vendor is a non-arm's length party of Delta 9 due to the fact that a director of Delta 9, Joanne Duhoux-Defehr, is also a director of the Vendor and is the owner of 20 per cent of the issued and outstanding shares of the Vendor. Accordingly, the acquisition of the Property and the Equipment are considered to be a non-arm's length party transaction and will be subject to the approval of the TSX Venture Exchange (the "Exchange"). The Exchange will require Delta 9 to provide evidence of the value of the Property and Equipment to the Exchange to support the purchase price being paid by Delta 9 as well as certain other information. Closing is also subject to the completion of satisfactory due diligence by Delta 9 as well as certain other closing conditions.

As previously announced, the Property is located in a heavy industrial area in Winnipeg, Manitoba. The production facility of Delta 9 has been located at the Property since July, 2013. Delta 9 has made significant improvements to the Property to enable it to be used as a cannabis cultivation facility. Management of Delta 9 believes that the acquisition of the Property will be positive for Delta 9 as it will allow Delta 9 to obtain complete ownership and control over its current cannabis production facility.

"Delta 9 has designed a highly efficient growing method through the development of our proprietary Grow Pod technology, and by purchasing the property we will be able to custom design and build structures that are ideally suited to house our cannabis Grow Pods," says CEO John Arbuthnot.

"This land purchase would not only secure our current expansion to 17,500 kilograms of cannabis annually, but would also secure our long term expansion on the same property."

About Delta 9 Cannabis Inc.
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 was the fourth company in Canada licensed to produce legal cannabis. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".

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 the closing of the acquisition of the Property by Delta 9 and Exchange approval for such acquisition. 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 that Delta 9's currently contemplated expansion and development plans may cease or otherwise change, Delta 9's production of cannabis may be lower than expected, Delta 9 may not obtain the required approvals from Health Canada, demand for Delta 9's products may be lower than anticipated, Delta 9's cost to produce its grow pods may be higher than expected and all other risk factors set forth in the filing statement of Delta 9 dated October 25, 2017 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.

SOURCE Delta 9 Cannabis Inc.

Gary Symons, Director of Communications, [email protected], 250.300.9352