Delta 9 Update on Production and Wholesale Activities

WINNIPEG, Manitoba, Jan. 27, 2020 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX:DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) is pleased to provide investors with an update on its cannabis production and wholesale selling activities. Over 2019, Delta 9 worked to increase its dried cannabis production capacity at its Winnipeg based facilities (the “Delta Facility”) and to add provincial listing and supply agreements to increase its distribution capacity.

Delta 9’s proprietary cannabis production methodology is based around a modular, scalable, and stackable production unit called the “Grow Pod”. Over the year, the Company received several licensing approvals from Health Canada, which increased the overall number of Grow Pods licensed as at December 31, 2019, to 297, an increase in licensed capacity of 93% from 154 as at December 31, 2018. The Company’s 297 Grow Pods currently licensed by Health Canada have an estimated annual production capacity of 8,325 kg of cannabis per year.

Summary of Highlights for the year ending December 31, 2019:

• Total number of Grow Pods licensed by Health Canada increased to 297
• Quarterly Production in grams increased to 1.3 Million grams in Q4, 2019
• Quarterly Direct Production Cost per gram decreased to $0.91 in Q4, 2019
• Quarterly Grams Released for sale increased to 718,353 in Q4, 2019

In 2019, the Company began to introduce key performance indicators (“KPIs”) as a part of its quarterly management discussion and analysis for its production and wholesale activities to provide investors with metrics to assess the performance of this business unit.

Below is a summary of select quarterly KPIs:

Key Performance Indicators	For the three-month period ending March 31, 2019	For the three-month period ending June 30, 2019	For the three-month period ending Sept 30, 2019	For the three-month period ending Dec 31, 2019
Production/ Wholesale Unit
Total Grams Produced	418,901	675,233	871,517	1,305,806
Cash Production Cost Per Gram	$1.44	$1.05	$1.08	$0.91
Total Cash Cost Per Gram	$1.60	$1.21	$1.21	$1.04
Total Grams Released for Sale	185,626	565,599	519,596	718,353

“We are very pleased at the progress of our production ramp up over this past year as we have consistently increased output capacity quarter over quarter,” said John Arbuthnot, CEO of Delta 9. “As we have scaled our production capacity and invested in automation of key processes, we have been able to realize significant efficiencies in our production cost per gram. We are now in an industry leading category with high quality and low-cost production capacity.”