Delta 9 Achieves Milestone in Agreement with Element Cannabis Group

WINNIPEG, Manitoba, Sept. 15, 2021 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) ("Delta 9" or the "Company"), is pleased to announce that it has completed its final services milestone under an agreement with Alberta based cultivation and processing partner, Element GP Inc. (“Element”). Element is an arm’s length third party in which the Company has no ownership control or interest.

As one of Delta 9’s cultivation and processing partners, Element entered into a Strategic Cooperation Agreement (“SCA”) with the Company whereby Delta 9 provides services relating to the cannabis production, development of standard operating procedures, sanitation programs, consulting on Health Canada licensing, marketing services to develop the Element brand and other services supporting the acquisition of the Health Canada license. On September 3, 2021, Element confirmed it had reached its final milestone under the SCA and has been granted its cannabis standard cultivation and standard processing licenses from Health Canada (the “Health Canada License”).

“We are delighted that Element Cannabis has received a Health Canada License for 8 of our proprietary and turn-key Grow Pod and Extraction Pod systems and has future plans to apply for increased capacity under the current Health Canada License to expand their extractions operations capacity and to grow cannabis vertically in their newly built 64,000 sq. ft. facility,” said John Arbuthnot, CEO of Delta 9. “Our turnkey platform for Grow and Extraction Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services.”

Delta 9's cultivation and processing 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. The turnkey smart growing platforms are developed using precision hardware and software grow applications for the indoor cannabis cultivation marketplace. Delta 9 offers vertical growing units, integrated grow racks, LED grow lights, and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and automated fertigation and watering systems.