Delta 9 Cannabis Scores Record Revenues Ahead of TSX listing
Press Release
WINNIPEG, MB – August 27, 2019 – DELTA 9 CANNABIS INC. (TSXV: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the second quarter of 2019.
Financial Highlights for Q2, 2019
- Record operating revenues of $8.9 million for the second quarter of 2019, up 1,142%, from $715,746 for the same quarter last year.
- Sequential net revenues increased 58% for the second quarter of 2019 compared to $5,632,184 in Q1, 2019.
- Adjusted EBITDA[1] was $(663,705) up $1.3 million or 65% compared to $(1,978,778) in Q1, 2019.
- Gross profit[2] of $2.9 million for the second quarter of 2019, up 780%, from $335,226 for the same quarter last year.
- Gross profit margin was 33% for Q2, 2019.
“Management would highlight the improvement of $1.3 million in Adjusted EBITDA loss over the past two quarters as a positive indication of the performance of the Company’s operating businesses in the wake of legalization of recreational use cannabis on October 17, 2018,” said John Arbuthnot, CEO of Delta 9. “We believe our Q2 results demonstrate the continued strength of our business model as we pursue a path towards profitability and disciplined growth for this year.”
Financial Highlights for the first half of 2019
- Record operating revenues of $14.5 million, up 1,286%, from $1.0 million for the same period last year.
- Gross profit2 of $4.8 million, up 973%, from $444164 for the same period last year.
- Gross profit margin was 33% for the first half of 2019.
“Delta 9 will continue to drive sustainable long-term shareholder value by leveraging its strong brand positioning in Western Canadian markets, expanding our various wholesale supply contracts and scaling up our cultivation operations said John Arbuthnot,” CEO of Delta 9. “We are taking a responsible and compliant approach to growing our business to build an authentic Delta 9 brand as we pursue retail opportunities in the Western Canadian market place.”
Operational Highlights
- On May 20, 2019, the Company received approval from Health Canada for an additional 48 of its proprietary “Grow Pods”, bringing its total number of Grow Pods approved by Health Canada to 202.
- The additional 48 Grow Pods will increase production by 1,150 kilograms per year of dried cannabis flower production, bringing the Company’s overall anticipated production capacity to 5,350 kilograms of dried cannabis flower per year.
- There are now a total of 297 Grow Pods within its Winnipeg production facility (the “Delta Facility”).
- The Company is continuing with its planned Phase II expansion of the Delta Facility to increase cannabis production to 16,500 kilograms per year.
“The 297 Grow Pods that Delta 9 now has in in our production facility will bring our anticipated production capacity to 7,626 kilograms once all the pods are approved by Health Canada for production,” said John Arbuthnot, CEO of Delta 9.
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