Delta 9 Signs 2.3 Million Gram Supply Agreement with Manitoba Liquor and Lotteries

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

WINNIPEG, MB, June 29, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce that it has entered into a cannabis supply agreement (the "Supply Agreement" or the "Agreement") for the province of Manitoba. Pursuant to the Supply Agreement, signed June 27, 2018, Delta 9 has agreed to make a minimum of 2.3 million grams of cannabis available through Manitoba Liquor and Lotteries Corporation ("MBLL") during the first 12 months of the Supply Agreement.

Under the Supply Agreement, MBLL will supply Manitoba retailers with a range of Delta 9 products ranging from Delta 9's lower-end "House Blend" to a selection of Delta 9's premium cannabis products. 

In addition, and separately from the Agreement, Delta 9 will be selling cannabis to other provinces, directly to customers at the Company's network of retail stores, and to customers through its online retail sales portal.

"We are obviously thrilled to have successfully concluded these negotiations," said John Arbuthnot, CEO of Delta 9. "We feel Manitoba is the furthest ahead of any Canadian province in terms of being ready for legalization and we also think that Manitoba will provide the best environment for retail sales in Canada."

Arbuthnot says the Supply Agreement is another step Delta 9 has been taking to prepare for the legal recreational market.

"Our goal for the past two years has been to position Delta 9 to become a leader in the legal cannabis industry," Arbuthnot said. "For this reason, our efforts have been tightly focused on creating a vertically integrated company that earns higher margins and has guaranteed distribution.

"Because we have both production and retail, we believe Delta 9 is very well positioned for the recreational retail market, but we continue to work on expanding our distribution throughout Canada and in areas of the world where cannabis is legal for medical use."

Delta 9 has already signed an agreement for export of medical cannabis to Germany, for example, and the Company is currently completing a renovation of its Winnipeg facility to meet the standard for cannabis importation set by the German government.

On Behalf of the Board of Directors
John Arbuthnot, CEO

About Delta 9 Cannabis Inc.
Delta 9 was the fourth company in Canada authorized as a Licensed Producer of medical cannabis. 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 also owns the majority share of Delta 9 Lifestyles, a company building out recreational cannabis stores in Canada, and 50 per cent of the Delta West production facility in Alberta. 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: (i) Delta 9's sales of cannabis to MBLL; (ii) the price paid by MBLL for cannabis from Delta 9; and (iii) the number of retail stores to be opened by Delta 9. 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 annual information form of Delta 9 dated May 31, 2018 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.

To arrange an interview, or for more information, contact: Gary Symons, Director of Communications, [email protected], 250.300.9352