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First Historical Shipment of Recreational Cannabis Shipped by Delta 9

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Delta 9 Cannabis Inc. (CNW Group/Delta 9 Cannabis Inc.)

This information was provided by prnewswire

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WINNIPEG, Oct. 10, 2018 /CNW/ – DELTA 9 CANNABIS INC. (TSXV: NINE) (OTC: VRNDF) (“Delta 9” or the “Company”) is pleased to announce the Company is this week fulfilling its first bulk bottled order of legal, recreational cannabis to Manitoba Liquor and Lotteries (MBLL).

Under its agreement with the Government of Manitoba Delta 9 is not currently revealing the size of the shipment or the price per gram.

However, CEO John Arbuthnot says this first order represents a significant “first order” of the Company’s 2.3 million gram Supply Agreement with MBLL.

“We are now shipping in a single day what we would have shipped over a period of months under the medical cannabis program,” said Arbuthnot. “We’ve always known the recreational market would be large, but it is still staggering to see orders of this magnitude being loaded at the warehouse door.”

The shipment is being made as Delta 9 and the MBLL prepare for legalized recreational cannabis in the province, beginning on October 17. The current shipment is slated to arrive at the MBLL warehouse on October 10th or shortly thereafter, so that MBLL will have stock on hand to supply retail outlets.

Delta 9 also holds a license to open recreational cannabis retail stores in the Province, and two of those stores have been approved to open in Winnipeg and Thompson through ‘Site Specific License Agreements’ with the Provincial Government. The Company is awaiting approval on two more retail outlets located in Brandon and the Osborne Village area of Winnipeg.

Since Delta 9 is also a retailer of cannabis in the Province, some of the cannabis being shipped to MBLL this week will be repurchased by Delta 9 for sale in its retail outlets, or in stores operated by Delta 9’s partner, Canopy Growth. The Delta 9 retail stores will also carry a variety of products from Canopy Growth.

Arbuthnot also released an update on the Company’s expansion project at its main production facility in Winnipeg, saying production is ramping up very rapidly to meet demand.

“By December we will have approximately 150 of our proprietary Delta 9 Grow Pods installed, and our new support and harvesting areas will also be finished,” Arbuthnot said. “More importantly, we are on track and under budget in our current project to build out 600 Grow Pods by the end of 2019, increasing our production capacity to 17,500 kilograms per year in Manitoba.”

Those figures do not include the expansion at the Delta West facility in Calgary, which is being co-developed by Delta 9 and Westleaf Cannabis.

The first order from MBLL comprises four different Delta 9 strains, those being Afghani Kush, Diesel, Blue Venom and Sensi Star.

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