ST. JOHN'S, Newfoundland and Labrador, June 15, 2020 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (DN.TO) (VRNDF) (“Delta 9” or the “Company”), is pleased to announce that today it has entered into a definitive agreement with Oceanic Releaf Inc. ("Oceanic") and Ms. Taylor Giovannini (the "Oceanic Agreement") and to acquire a five (5%) percent interest in the common stock of Oceanic in exchange for the provision by Delta 9 of certain consulting and training services to Oceanic. Delta 9 has also entered into an agreement with the Province of Newfoundland and Labrador, Newfoundland and Labrador Liquor Corporation (“NLC”) and Oceanic pursuant to which Delta 9 will supply cannabis and cannabis-related products in that Province.
"We are looking forward to working with Oceanic to further assist start-up cannabis companies grow and flourish. We also look forward to bringing our portfolio of high quality Delta 9 products into the Province of Newfoundland and Labrador," said John Arbuthnot, founder and CEO of Delta 9. "This marks Delta 9’s first direct investment in a cannabis company in Newfoundland and Labrador and when looking for opportunities to do so in that Province, Oceanic stood out as a clear choice."
"We are thrilled to move forward with the Province of Newfoundland and Labrador, NLC and Delta 9. Together we will cultivate amazing cannabis, create a memorable retail experience and revitalize the community of Burin!” said Taylor Giovannini, founder and President of Oceanic. “We are so excited by the opportunity to work with a company like Delta 9, to learn from them, and especially to see them invest in our Province. It’s proof that we have the potential to contribute something special to the cannabis industry, both here at home and around the world – fresh, clean products from one of the last unspoiled areas in North America. Strategic partnership with Delta 9 will elevate Oceanic’s expertise and expedite products to market."
Consideration for the common shares acquired by Delta 9 in the capital stock of Oceanic will be paid by way of the provision of certain consulting and training services to Oceanic over a term of one (1) year pursuant to a strategic cooperation agreement. The intent of the strategic cooperation agreement is to further Oceanic’s efforts to establish itself as a licensed cannabis producer in Newfoundland and Labrador.
All agreements and transaction referenced herein are subject to, among other conditions, the obtaining of all required third party and governmental consents, authorizations and licenses required in connection therewith, including, without limitation, all required authorizations from NLC.
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
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 Toronto Stock Exchange under the symbol "DN" and on the OTCQX under the symbol "VRNDF". For more information, please visit www.delta9.ca.
About Oceanic Releaf Inc.
Oceanic Releaf is a proud Newfoundland and Labrador vertically integrated cannabis company that will play a key role in the growth of the Province’s cannabis industry. Oceanic is near completion of the Phase 1 retrofit (15,000 square feet) within an existing 63,000 square-foot facility in the heart of the Burin Peninsula and is dedicated to supporting local employment, infrastructure and innovation. Oceanic is primarily focused on the wellness consumer segment within the recreational cannabis market. Partnering with local lifestyle brands and wellness practitioners, Oceanic seeks to bring positive change to rural communities through employment and wellness initiatives. The recreational market for Oceanic’s planned growth strategy includes multiple lines of business, including a packaged goods “Oceanic” brand available for purchase by consumers and its own branded Oceanic retail storefront locations.
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) obtaining all necessary regulatory approvals for all agreements and transactions referenced herein and (ii) the closing of the transactions referenced herein. 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 risk that the transactions referenced herein do not close as well as all risk factors set forth in the annual information form of Delta 9 dated March 19, 2020 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.