July 24th, 2018

// Delta 9 Applauds Manitoba Cannabis Retail Expansion

Delta 9 Applauds Manitoba Cannabis Retail Expansion



WINNIPEG, July 24, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") confirms it will be applying for a license to open more cannabis retail outlets in Manitoba, as part of the second phase of retail cannabis expansion announced yesterday by the Manitoba Government.

Growth, Enterprise and Trade Minister Blaine Pedersen announced Monday, July 23, that his government will issue a second public tender for companies that wish to build and operate cannabis retail stores across the Province. Mr. Pedersen said the intention is to ensure that within the first two years of legalization, 90 per cent of Manitobans will be able to access legal cannabis within a 30-minute drive or less.

"In proceeding with phase two of our retail strategy, we are keeping our promise to establish a competitive retail environment that creates new economic opportunities for all Manitobans," said Pedersen.

Delta 9 CEO John Arbuthnot says he's happy to see the Manitoba Government pushing forward on the second phase of retail expansion.

"As one of the most experienced cannabis companies in Canada, and one of only two cannabis companies based in Manitoba, we feel we are uniquely qualified to provide this important product and service, and to provide more economic development and employment for the people of Manitoba," Arbuthnot said.

The Company has already secured locations for its first four retail stores, two of them in Winnipeg, one in Brandon, and the fourth in Thompson. Arbuthnot says he doesn't know yet how many retail stores will be allowed in the second phase of the program, but adds the Company would be prepared to open up to an additional dozen stores in 2019.

"As a local company, we want to be able to serve the people of Manitoba in every corner of the Province," Arbuthnot said. "It's clear from the Minister's remarks that he is concerned more remote communities may not be well served, so we're committing that as part of our program, we will absolutely build a network that includes smaller rural communities as soon as possible.

"We are fully funded to expand our operations throughout Manitoba, and to increase our production to meet demand," Arbuthnot added.

The Manitoba Government will first issue a Request for Pre-Qualifications (RFPQ) which companies can respond to by August 31, 2018. Companies must first qualify to become a candidate for retail store licenses, and will then be eligible to apply for a license under a Request for Proposals.

Delta 9 is among the companies that have already qualified as a retail license holder in Manitoba. Mr. Pedersen confirmed yesterday that retailers who submitted proposals under the initial public tender will be eligible for the current RFPQ process.

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) approvals for Delta 9's production facilities by Health Canada; (iv) demand for Delta 9's products; and (v) Delta 9's cost to produce its grow pods. 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.

SOURCE Delta 9 Cannabis Inc.


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