Delta 9 Provides Guidance for Q2, 2019 Results, Anticipating Revenues of $8.1M to $8.8M
WINNIPEG, Aug. 6, 2019 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company") is pleased to provide guidance on select second quarter results for the three-month and six-month period ending June 30, 2019:
- Based on preliminary results, the Company anticipates revenues for the three-month period ending June 30, 2019 to be between $8.1 million and $8.8 million compared with $715,746 for the three-month period ending June 30, 2018.
- Based on preliminary results, the Company anticipates revenues for the six-month period ending June 30, 2019 to be between $13.8 million and $14.5 million for the six-month period ending June 30, 2018, compared to $1.05 million for the same period the prior year.
- Management believes that continued revenue growth and disciplined cost management initiatives will allow the Company to achieve positive cashflows from operations in fiscal 2019.
"Going forward, we continue to see strong demand for our premium quality products from the recreational usage market and with the anticipation of Health Canada's rules on extraction this October, we expect revenues to continue to grow this year," said John Arbuthnot, CEO of Delta 9. "These factors, together with our B2B growth in Grow Pod sales to micro producers and our growing portfolio of higher margin products, puts us in a position to achieve positive cashflow this year."
Revenue growth for the first six months of 2019 was driven by the Company's strong market position, with three retail stores strategically located in Winnipeg and Brandon, Manitoba and first shipments of our wholesale supply contracts to Alberta and Saskatchewan.
The Company continues to ramp up its production capacity to 5,350 kilograms of cannabis per year during 2019.
Delta 9 is also looking forward to the upcoming finalization of the draft regulations which will allow derivative, higher margin products such as vape pens, beverages, and edibles to be sold in the Canadian adult use market during 2019.
Full second quarter results will be published on August 27, 2019, after the close of the market, followed by a conference call the next morning, details for which can be found at the end of this release.
The preliminary estimated financial results and other data for the quarter ended June 30, 2019 set forth above are subject to the completion of the Company's financial closing procedures. These preliminary estimated financial results have been prepared by and are the responsibility of the Company's management. The Company's independent registered public accounting firm, Baker Tilly HMA LLP, has reviewed these preliminary estimated financial results and other data, but did not audit or express an opinion on them. The Company currently expects that its final results of operations and other data will be consistent with the estimates set forth above, but such estimates are preliminary and the Company's actual results of operations and other data could differ materially from these estimates due to the completion of its financial closing procedures, final adjustments and other developments that may arise between now and the time such consolidated financial statements for the period ended June 30, 2019 are issued.
Second Quarter 2019 Results Conference Call
Delta 9 will release the results for its second quarter on August 27, 2019. A conference call to discuss the results for its second quarter will be scheduled for August 28, 2019, pre-market. The conference call will be hosted that day 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.
DATE: |
August 28, 2019 |
TIME: |
9:00am Eastern Time |
Dial in # |
1-888-886-7786 |
REPLAY: |
1-877-674-6060 |
Replay |
528211 # |
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 TSX Venture Exchange under the symbol "DN" and on the OTCQX under the symbol VRNDF. For more information, please visit www.delta9.ca.
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) Delta 9's financial results for the quarter ended June 30, 2019; and (ii) Delta 9's strategic growth plan. 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 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.
SOURCE Delta 9 Cannabis Inc.
Investor & Media Contact: Ian Chadsey VP Corporate Affairs, Mobile: 204-898-7722, E-mail: [email protected]
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