Delta 9 Receives Renewal of Health Canada License and Oils Sales Authorization

Provides an update on Pre-Rolls and new Product Development

WINNIPEG, Sept. 2, 2019 /CNW/ - DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company"), is pleased to announce that on August 30, 2019 it received its renewal license from Health Canada for a term of three years. This license authorizes Delta 9 to cultivate, process and sell cannabis from its Winnipeg production facility. The Company is also pleased to provide investors with an update on cannabis oils sales, cannabis pre-rolls sales, and new product development.

Health Canada License Renewal and Oils Sales Authorization

The Company, through its subsidiary, Delta 9 Bio-Tech Inc., has received its renewed Standard Cultivation and Standard Processing license for cannabis from Health Canada. The Company has fulfilled Health Canada's rigorous specifications, and successfully passed all inspections.

"Delta 9 employees have worked hard to meet the requirements within Health Canada's strictly regulated licensing environment. It speaks to the professionalism of our team that it has maintained the high standards of safety, quality and security in accordance with Health Canada's regulations for licensed producers," said John Arbuthnot, Chief Executive Officer of Delta 9.

The Company has also received approval from Health Canada for sales of cannabis oil products. The Company has already completed production of several initial batches of its "Odyssey" and "Oasis" lines of ingestible oils and will proceed with sales of these products in the medical and recreational use cannabis markets.

Pre-Rolls

In June this year the Company launched its "Bliss" line of pre-rolled cannabis products, which consist of blended cannabis flower, rolled in a cigarette format, or "joint", for sale in the medical and recreational use cannabis markets. To date the Company has produced and sold over 75,000 cannabis pre-rolls.

"It is management's belief that these products will become an increasingly important component of the medical and recreational use cannabis markets in the future," said John Arbuthnot, Chief Executive Officer of Delta 9. "A continually expanding line of high-quality cannabis products is a major goal for the Company over this year and this is the first of what we hope are several milestones in our progress."

Products for Future Development

Nanosphere Evolve Products

Delta 9 has acquired an exclusive license in Canada to manufacture and sell products made with the patented technology of Nanosphere Health Sciences Inc. ("NanoSphere") for the delivery of cannabinoids via nanoparticle technology. The two companies are in the process of developing the first product for Canada; an intraoral cannabis oil containing cannabinoid nanoparticles.

The NanoSphere delivery system for cannabis works by nano-encapsulating active ingredients in phospholipid membranes for transportation through the skin and mucosa into the bloodstream within minutes. Cannabis applications of the technology include transdermal viscous gels, intranasal products and intraoral products, all of which provide rapid results, precise dosages and high bioavailability. The NanoSphere delivery system of cannabis can eliminate the need for inhalation or ingestion of cannabis, offering users a potentially safer and more effective method of consumption.

Dried Sift Cannabis

The Company is currently developing its "Sapphire" line of dried sift cannabis products for the recreational cannabis market which involves sifting the Company's blended products and refining them, leaving more of the high potency resin glands and less of the low potency plant material. The final product is a yellow/brownish powder and has a potency that is up to triple that of the whole flower dried cannabis materials. The Company plans to release dried sift products in the recreational cannabis market in the third quarter of 2019. Management expects that retail pricing for these products will be up to $30 per gram.

Oils, Extracts, and Derivative Products

The Company continues to develop and expand its in-house oils production capacity and is working with partners regarding its strategy for new cannabis extracts and derivative products once the federal government finalizes its expanded extract regulations, which are expected to become effective in 2019.

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 Toronto Stock Exchange under the symbol "DN" and on the OTCQX under the symbol VRNDF. For more information, please visit 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. Forward looking statements in this news release include statements relating to: (i) Delta 9's plans to expand its cannabis product offerings; and (ii) Health Canada approvals for certain cannabis products. 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 failure to receive all necessary approvals for new cannabis product offerings or new cannabis product offerings not being developed by Delta 9, 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: [phone], E-mail: [email protected]

Related Links

www.delta9.ca