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Delta 9 Expands Distribution Business in Manitoba

Delta 9 Cannabis
Delta 9 Cannabis

WINNIPEG, Manitoba, Aug. 02, 2023 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) ("Delta 9" or the "Company"), is pleased to announce that, through its wholly owned subsidiary Delta 9 Logistics Inc., it intends to expand its distribution and cross-docking business in Manitoba as a result of Manitoba Liquor & Lotteries Corporation (“MBLL”) changes to wholesale distribution regulations.

Effective July 31, 2023, MBLL implemented a set of new regulatory enhancements intended to improve lead times for the delivery of cannabis shipments from suppliers and distributors to Manitoba based retailers.

The enhancements will allow the Company to bring additional cannabis inventory from third-party suppliers into the province, closer to the operating retail network, and significantly improve the lead time and fulfilment cycles experienced by retailers. This inventory no longer needs to be subject to a purchase order to enter the province. MBLL also announced it will remove the previous 8-day holding period for retailer orders, allowing purchase orders to be shipped immediately.

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“We view these announcements from MBLL as material in improving the supply chain cycle efficiency for Manitoba based retailers and improving logistics cost efficiencies for out of province suppliers,” said John Arbuthnot, CEO of Delta 9. “We believe that these changes will allow us to significantly expand our list of cross-docking and distribution customers and increase overall revenues from this new growth segment. We applaud MBLL and the Manitoba government who have taken several proactive steps in the past number of months to support the cannabis industry including the repeal of the 6% retail social responsibility fee.”

The Company anticipates that the move to warehouse inventory in Manitoba at its Winnipeg based facilities will allow it to shorten lead times for deliveries to 3 – 5 business days, from 3 – 5 weeks previously. The Company currently operates an 11,000 sq ft cannabis warehousing and distribution operation licensed by MBLL and the Liquor Gaming and Cannabis Authority (“LGCA”). The Company intends to begin executing expanded distribution agreements with suppliers immediately and anticipates that distribution shipments of locally stored products will begin in Q3, 2023.

“Our cross-docking, distribution, and logistics services further enhance our strategic relationships with key licensed producer partners across all segments of Delta 9’s business in Canada and we look forward to adding efficiency and a high level of service to customers in Manitoba," said John Arbuthnot.

For more information contact:

Logistics Contact:
Scott Spak CCLP, VP of Logistics
Phone: 204-500-0183
E-mail: scott.spak@delta9.ca

Investor & Media Contact:
Ian Chadsey, VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca

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 95,000 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 OTC under the symbol "DLTNF". 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) the Company’s intent to provide cross-docking and distribution services in Manitoba, and (ii) the Company’s ability to produce revenue from cross-docking and distribution services. 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 Distribution Services not being as anticipated, as well as all risk factors set forth in the annual information form of Delta 9 dated March 30, 2023 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.