Delta 9 Expansion Creating New Jobs in Manitoba


Ryan Allway

January 4th, 2018

News, Top News


WINNIPEG , Jan. 4, 2018 /CNW/ – Delta 9 Cannabis Inc. (NINE.V) (“Delta 9” or the “Company”) has unveiled its more detailed expansion plans following the closing of its $23 million short form prospectus offering of units on December 28, 2017 .

Newly constructed 'grow pods' at the Delta 9 facility in Winnipeg are part of a $23 million expansion project at the Manitoba based Licensed Producer. (CNW Group/Delta 9 Cannabis Inc.)

As part of that expansion, Delta 9 CEO John Arbuthnot says the company expects to create more than 200 new jobs in the areas of production and construction alone.

Delta 9 projects the hiring of 105 full-time equivalent (FTE) jobs in the production facility by the end of this year, and an additional 12 workers for construction.

That number is expected to almost double in 2019, when the Company projects a total of 210 FTE positions in production, and 21 construction workers.

As previously announced, the financing enables the Company to increase its production capacity to approximately 12,000 kilograms of cannabis per year by the end of 2019. The Company plans to allocate approximately $15.9 million specifically for the construction of approximately 336 of Delta 9’s self-designed ‘grow pods’ in 2018 and 2019.

It is anticipated that the Company will spend $5,700,000 building 112 grow pods in 2018 and $10,200,000 to build an additional 224 grow pods in 2019. Of those pods, it is expected 312 will be used as producing pods which each produce approximately 30 to 32 kilograms of cannabis per year.

The remaining 24 pods will be ‘support pods’ designated for use as mothering or cloning rooms which will not produce cannabis for sale by the Company. The Company may also allocate additional revenue from the sale of cannabis and other current working capital to building additional grow pods during 2018, 2019 and beyond.

“The grow pods we’ve designed over the past two years represent a great return on capital investment, and we’re very excited to move into full-scale construction this year,” says Arbuthnot. “Each of these pods costs only $40,000 to retrofit and install, including related expenses, but each can produce between $225,000 and $240,000 in annual revenue.”

Delta 9’s revenue estimates are based on an average sales price of $7.50 per gram of cannabis. By the end of 2018, the Company estimates that it will be in a position to generate more than $75 million in annual revenue from the sale of cannabis.

“This expansion empowers our commitment to reliably supply the Manitoba market with cannabis products that are produced here in Winnipeg , and it will create hundreds of full-time, quality jobs in our province,” Arbuthnot says. “These developments are great for our shareholders, but we’re equally happy to see they are also creating economic benefits for our friends and neighbours in the Province of Manitoba .”

About Delta 9 Cannabis Inc.

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’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 expansion plans; (ii) Delta 9’s production of cannabis; (iii) the price to be received by Delta 9 per gram of cannabis; (iv) demand for Delta 9’s products; (v) Delta 9’s cost to produce its grow pods; and (vi) the number of employees of 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 filing statement of Delta 9 dated October 25, 2017 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.

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.

Learn How Your Company can Be Covered on CFN Media

Learn More About the CFN Media Sponsored Content Program

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: http://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

Copyright © TDM Financial LLC · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading