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Delta 9 Announces Completion of Acquisition of Three Retail Cannabis Stores in Manitoba

Press Release

WINNIPEG, MB – September 7, 2022 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”) is pleased to announce that on September 6, 2022 it completed a previously announced transaction with 10552763 Canada Corp. (the “Vendor”) whereby, pursuant to the asset purchase agreement between the Company and the Vendor dated August 12, 2022, the Company acquired all or substantially all of the Vendor’s assets relating to the operation of three Garden Variety branded retail cannabis stores located in Manitoba, two in Winnipeg and one in Brandon (the “Transaction”).

“We are pleased to announce the closing of another strategic retail acquisition to grow our market share across the Canadian prairies,” said John Arbuthnot, CEO of Delta 9, “Delta 9 now operates 38 cannabis retail stores, positioning us as one of Canada’s largest vertically integrated cannabis retailers.”

The purchase price paid by the Company relating to the Transaction was $3,250,000, subject to customary adjustments (the “Purchase Price”). $2,925,000 of the Purchase Price was satisfied through the issuance of 17,944,785 common shares in the capital stock of the Company (each a “Common Share”) at a deemed price of $0.163 per Common Share, representing the ten (10) day volume weighted average price of the Common Shares on the Toronto Stock Exchange (the “TSX”) on September 2, 2022 (the “Common Share Price”).  $325,000 of the Purchase Price will be satisfied through the issuance of 1,993,865 Common Shares at a deemed price of the Common Share Price per Common Share, which will be issued in approximately six months.

The closing of the Transaction remains subject to the final approval of the TSX.

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: [email protected]


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