Delta 9 Achieves Milestone in Agreement with Micro Cultivation Partner

WINNIPEG, Manitoba, Oct. 26, 2020 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company"), is pleased to announce that it has completed its final services milestone under an agreement with Saskatchewan based Micro Cultivation partner, Paradise Cannabis LTD. (“Paradise”). Paradise is an arm’s length third party in which the Company has no ownership control or interest.

As one of Delta 9’s Micro Cultivation partners, Paradise entered into a Strategic Cooperation Agreement (“SCA”) with the company whereby Delta 9 provides services relating to the cannabis production facility design, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing and other services supporting the acquisition of the Health Canada license.

On October 23, 2020, Paradise confirmed it had reached its final milestone under the SCA and has been granted its cannabis micro cultivation licenses from Health Canada (the “Health Canada License”).

“We are delighted that Paradise has received a Health Canada Licence for twelve of our proprietary and turn-key "Grow Pod" systems and will begin cultivation of craft quality cannabis”, said John Arbuthnot, Founder and CEO of Delta 9. “Our turn key platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services.”

The Company's cannabis production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod", which are based on retrofitted 40-foot shipping containers. Paradise’s facility has been designed and built using this turn key and state of the art Grow Pod system. Once cultivation begins, Delta 9 plans to purchase premium quality cannabis products from Paradise for distribution through the Company's established distribution network, and through Delta 9's branded retail stores. Delta 9 has now successfully licensed over 72 Grow Pods in third party facilities across Canada.

“I would like to thank Delta 9 for providing us with a turn-key platform to grow cannabis and for their continued support as we begin production", said Doug McGillivray, President of Paradise. "We look forward to being a part of this new industry producing small batch, passionately grown, craft cannabis. You will find our premium Paradise Cannabis products at Delta 9 retail locations soon!”