WINNIPEG, March 14, 2019 /CNW/ - DELTA 9 CANNABIS INC. (TSXV:NINE.V - News) (OTCQX:VRNDF - News) ("Delta 9" or the "Company") is pleased to provide guidance on selected yearend financial results for 2018:
- Based on preliminary (unaudited) results, the Company anticipates revenues of between $7.6 million and $8.4 million for the twelve-month period ending December 31, 2018, compared to $944,114 for the same period the prior year. Year over year revenues are expected to be up over 700% in 2018 versus 2017.
- Based on preliminary (unaudited) results, the Company anticipates revenues of between $5.3 million and $6.1 million for the three-month period ending December 31, 2018, compared with $1,251,213 for the three-month period ending September 30, 2018. Sequential revenues are expected to be up over 320% in Q4, 2018 versus Q3, 2018.
- Management believes that revenue growth and disciplined cost management will allow the Company to achieve positive cashflow in fiscal 2019.
Full audited year end results will be published on April 23, 2019, pre-market, followed by a conference call later that day, details for which can be found at the end of this release.
"2018 was a record year for Delta 9 as the completion of our phase 1 expansion program generated significant revenue growth across our retail and wholesale market segments" said John Arbuthnot, CEO of Delta 9.
Revenue growth for the year was driven by the Company's strong market position in Manitoba, opening of its first retail store, completion of initial shipments on its wholesale supply contracts, and its medical products and services business. The Company continued to ramp up its production capacity to 4,228 kilograms of cannabis per year during 2018. Based on its current production capacity and the Company's cultivation and harvest schedules, Delta 9 expects to increase overall production capacity to over 16,000 kilograms of cannabis per year during 2019. Delta 9 is also looking forward to the upcoming finalization of the draft regulations which will allow derivative, higher margin products such as vape pens, beverages, and edibles to be sold in the Canadian adult use market during 2019.
"Going forward, we continue to see strong demand for our premium products from the adult usage market and with the anticipated opening of three additional retail stores in the first half of 2019, we expect revenues to continue to grow," said Arbuthnot. "These factors, together with our disciplined approach to managing operating expenses, and our growing portfolio of higher margin products, puts us in a position to achieve positive cashflow this year."
The preliminary estimated financial results and other data for the year and quarter ended December 31, 2018 set forth above are subject to the completion of the Company's financial closing procedures. These preliminary estimated financial results have been prepared by, and are the responsibility of, the Company's management, and were approved by management on March 13, 2019. The Company's independent registered public accounting firm, Baker Tilly HMA LLP, has not audited, reviewed or performed any procedures with respect to these preliminary estimated financial results and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. The Company currently expects that its final results of operations and other data will be consistent with the estimates set forth above, but such estimates are preliminary and the Company's actual results of operations and other data could differ materially from these estimates due to the completion of its financial closing procedures, final adjustments and other developments that may arise between now and the time such audited annual consolidated financial statements for the year ended December 31, 2018 are issued.
Year-End Results 2018 Conference Call
Delta 9 has scheduled its conference call to discuss the results for its fourth quarter and year ended December 31, 2018, which will be released on April 23, 2019 pre-market. The conference call will be hosted that day at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period.
April 23, 2019
Dial in #
1-888-886-7786 - Toll free North America
Available until July 23, 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 TSX Venture Exchange under the symbol "NINE" and on the OTCQX under the symbol VRNDF. For more information, please visit www.delta9.ca.
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 financial results for the year and quarter ended December 31, 2018; (ii) increases in Delta 9's cannabis production capacity; (iii) changes to laws and regulations regarding cannabis-related products; (iv) demand for Delta 9's products; (v) 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 actual financial results being different from its estimates as well as all 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.
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SOURCE Delta 9 Cannabis Inc.
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