WINNIPEG, Feb. 1, 2019 /CNW/ - DELTA 9 CANNABIS INC. (TSXV:NINE.V - News) (OTC:VRNDF - News) ("Delta 9" or the "Company") is pleased to announce that effective January 31, 2019 (the "Closing Date") it has closed the previously announced sale of its 50% interest in the Delta West extraction facility to Westleaf Inc. (TSX-V:WL.V - News) ("Westleaf"). Pursuant to the transaction, Westleaf has issued an aggregate of 5,600,000 common shares in the capital of Westleaf ("Westleaf Shares") to Delta 9 in consideration for the acquisition of Delta 9's 50% interest in the limited partnership that owns the Delta West extraction facility.
On closing of the transaction, Delta 9 entered into a voluntary escrow agreement that, in addition to the four month restricted period required by law, restricts the transfer of the Westleaf Shares issued under the definitive agreement as to: (i) 1,000,000 Westleaf Shares for a four (4) month period following the Closing Date; and (ii) 4,600,000 Westleaf Shares for an eight (8) month hold period following the Closing Date.
About Delta 9 Cannabis Inc.
Delta 9 Cannabis was the fourth producer in Canada licensed to produce legal cannabis. Delta 9 now operates its wholly-owned subsidiary, Delta 9 Bio-Tech Inc., as 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 50 per cent of the 70,000 square foot Delta West facility in Alberta, and co-owns the Delta Nine Cannabis Store retail network. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE" and on the OTC under the symbol VRNDF.
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. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.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.
View original content to download multimedia:http://www.prnewswire.com/news-releases/delta-9-closes-sale-of-calgary-facility-to-westleaf-300788030.html
SOURCE Delta 9 Cannabis Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2019/01/c3110.html