Delta 9 Awarded Grow Pod Contract for Cultivation Facility in British Columbia

WINNIPEG, Manitoba, May 10, 2023 (GLOBE NEWSWIRE) --  DELTA 9 CANNABIS INC. (TSX:DN) (OTCQX:DLTNF) (“Delta 9” or the “Company”) is pleased to announce that it has secured a purchase order from 1356089 BC Ltd. for up to 12 of its modular Grow Pods for a cultivation facility in British Columbia.

1356089 BC Ltd. has also entered into a Strategic Cooperation Agreement with the Company whereby Delta 9 will provide services relating to 1356089 BC Ltd.’s cannabis production facility, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, marketing services to develop the 1356089 BC Ltd. brand, and other services supporting the acquisition of a Health Canada cultivation and processing license. The Company anticipates the value of the purchase order and Strategic Cooperation Agreement will be approximately $1.2 million.

“We are delighted to partner with 1356089 BC Ltd. on the development of their facility which will house twelve of our proprietary and turn-key "Grow Pod" systems”, said John Arbuthnot, Founder and CEO of Delta 9. “Our turnkey platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services as they launch their businesses.”

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. 1356089 BC Ltd. production facility has been designed and purpose built using this turnkey and state of the art Grow Pod system. Since 2018 Delta 9 has successfully installed over 250 Grow Pods in third party facilities across Canada and the United States.

“1356089 BC Ltd. is a business partnership and self-funded cannabis grower based in Merit, British Columbia. We have plans to service the recreational cannabis market in BC and across Canada.” said the 1356089 BC Ltd. management team. “We are confident in our ability to produce premium BC grown cannabis products that will delight Canadian consumers.”

1356089 BC Ltd. is developing a state-of-the-art 4800 sq ft micro cultivation facility on a 4-acre parcel of land, in Merit, British Columbia. This new facility houses a micro cultivation license, including twelve new grow pod systems, and a proprietary craft growing approach developed by Delta 9. 1356089 BC Ltd.’s initial plan is to focus on growing two strains of 25%+ THC before it expands its product offering. 1356089 BC Ltd. owns two additional half-acre adjacent lots to the property which are slated for future expansion of 18,000 sq ft to house an additional 48 Grow Pods.