Delta 9 Receives Expansion Approval from Health Canada for 95 Additional Grow Areas, Provides Expansion Update
December 3rd, 2019
WINNIPEG, Manitoba, Dec. 02, 2019 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce it has received Health Canada approval to place 95 new Grow Pods from its Phase II expansion into production. Delta 9’s proprietary cannabis production methodology is based around a modular, scalable, and stackable production unit.
The Company is now working to place the 93 flowering Grow Pods and two support Grow Pods into production which will increase production capacity by 56% and bring the total number of Grow Pods approved by Health Canada and in production to 297. The Company anticipates that these additional Grow Pods will add an additional 2,975 kg/year in dried cannabis flower production, bringing Delta 9’s overall anticipated production capacity to 8,325 kg/year.
“This is the next step for Delta 9 in terms of Health Canada expansion approvals for our Phase II expansion. Our Grow Pod style of production allows us to produce a high quality and low-cost cannabis product,” said John Arbuthnot, CEO of Delta 9. “Additional supply capacity will allow us to pursue additional distribution agreements and further secure our place in the Canadian cannabis market.”
Phase II Expansion
The Company is working to expand its Health Canada licensed perimeter to include additional buildings on its licensed production facility in Winnipeg, Manitoba (the “Delta Facility”) which will bring the total licensed square footage to approximately 135,000 square feet, from 80,000 square feet currently licensed by Health Canada.
The Company is also now working to finalize its purpose-built cannabis processing center which will allow for fully automated bottling, packaging, capping, and labelling functions for its consumer-packaged dried cannabis products. The Company anticipates that once the processing center is licensed and operating at capacity it will allow for processing of up to 25,000 kg/year of dried cannabis flower material.
The Company also wishes to announce that it is has revised its previously released expansion plans for the remaining Phase II areas of the Delta Facility to include an additional 129 Grow Pods, comprised of approximately 114 flowering Grow Pods and 15 support Grow Pods. This is less than the 311 additional Grow Pods previously contemplated under the Phase II expansion plan which would have seen a maximum of 608 Grow Pods under license. Once fully built and licensed, the Company anticipates having up to 420 Grow Pods under license as a part of its Phase II expansion. The additional Grow Pods will be placed within existing warehouse space at the Delta Facility.
“In light of the current cannabis market environment we are taking a more conservative approach to capital deployment,” said John Arbuthnot, CEO of Delta 9. “Our goal is to ensure that our current licensed production assets are operating at design capacity and we achieve efficient sell through rates while continuing with our organic expansion strategy.”
The Company anticipates that this further Phase II expansion will add an additional 3,650 kg/year in dried cannabis flower production, bringing the overall anticipated production capacity for the Delta Facility to 11,975 kg/year. The anticipated construction cost of the balance of the Phase II expansion is expected to be approximately $7,000,000 which the Company plans to fund with a mix of cash flows from operations and cash on hand.
Phase III Expansion
The Company continues to plan for future development on its Winnipeg based site with its previously announced Phase III expansion. The long term plans for the site include a 15 MW hydro substation, 15 modular warehouses covering approximately 480,000 square feet of production space on two levels, 1,500 Grow Pods, and a total cannabis production capacity of up to 60,000 kg/year.
The Company will provide further updates on the Phase II and Phase III expansions as they become available.
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
E-mail: [email protected]
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 Toronto Stock Exchange under the symbol “DN” and on the OTCQX under the symbol VRNDF. 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) increases in Delta 9’s cannabis production capacity; (ii) the completion of Delta 9’s cannabis processing center; and (iii) the completion of Delta 9’s Phase II and Phase III expansions and the costs thereof. 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 April 30, 2019 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.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Media Group (CannabisFN), owned and operated by CFN Enterprises Inc. (OTCQB: CNFN), 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.
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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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: https://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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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: https://www.cannabisfn.com/legal-disclaimer/.