Delta 9 Announces Notice of Sales and Investment Solicitation Process for Delta 9 Bio-Tech Inc.

Press Release

WINNIPEG, MB – August 14, 2024 – DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) (“Delta 9” or the “Company”) announces that on July 24, 2024, the Court of King’s Bench of Alberta (the “Court”) has granted an order approving a sales and investment solicitation process (the “SISP”) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of the assets of the business of its wholly-owned subsidiary, Delta 9 Bio-Tech Inc. (“Delta 9 Bio-Tech”) (the “Opportunity”). The SISP was approved contemporaneously with an amended and restated initial order under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) granted to the Company by the Court of King’s Bench of Alberta (the “Court”)

The Opportunity may include one or more of a restructuring, recapitalization or other form or reorganization of the business and affairs of Delta 9 Bio-Tech as a going concern, or a sale of all, substantially all, or one or more components of Delta 9 Bio-Tech’s assets (the “Property”) and business operations (the “Business”) as a going concern or otherwise.

The Property includes a 95,000 square foot, Health Canada approved cannabis production facility located at 760 Pandora Avenue East, Winnipeg, Manitoba. The Business has been able to cultivate premium quality cannabis at a cash cost of $0.60 to $0.70 per gram with an industry-competitive cost structure (favourable labour, land-leasing, and power cost). Further, management of the Company believe that an opportunity exists for modest capital investment to expand production and further reduce costs.

Interested parties wishing to pursue the Opportunity are to submit a formal binding offer to Alvarez & Marsal Canada Inc., the monitor appointed pursuant to the CCAA (the “Monitor”), in accordance with the SISP, by 5:00 p.m. (Mountain Time) on October 28, 2024.

Copies of the SISP procedure document and other Court filed materials are available at: https://www.alvarezandmarsal.com/delta9.
Interested parties who wish to obtain additional information and participate in the SISP may contact the Monitor at: delta9@alvarezandmarsal.com.

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The Company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates a 95,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. For more information, please visit https://www.delta9.ca.

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