Delta 9 Receives Renewal of Health Canada License and Oils Sales Authorization

Press Release

WINNIPEG, MB – September 2, 2019 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce that on August 30, 2019 it received its renewal license from Health Canada for a term of three years. This license authorizes Delta 9 to cultivate, process and sell cannabis from its Winnipeg production facility. The Company is also pleased to provide investors with an update on cannabis oils sales, cannabis pre-rolls sales, and new product development.

Health Canada License Renewal and Oils Sales Authorization
The Company, through its subsidiary, Delta 9 Bio-Tech Inc., has received its renewed Standard Cultivation and Standard Processing license for cannabis from Health Canada. The Company has fulfilled Health Canada’s rigorous specifications, and successfully passed all inspections.
“Delta 9 employees have worked hard to meet the requirements within Health Canada’s strictly regulated licensing environment. It speaks to the professionalism of our team that it has maintained the high standards of safety, quality and security in accordance with Health Canada’s regulations for licenced producers,” said John Arbuthnot, Chief Executive Officer of Delta 9.

The Company has also received approval from Health Canada for sales of cannabis oil products. The Company has already completed production of several initial batches of its “Odyssey” and “Oasis” lines of ingestible oils and will proceed with sales of these products in the medical and recreational use cannabis markets.

Pre-Rolls
In June this year the Company launched its “Bliss” line of pre-rolled cannabis products, which consist of blended cannabis flower, rolled in a cigarette format, or “joint”, for sale in the medical and recreational use cannabis markets. To date the Company has produced and sold over 75,000 cannabis pre-rolls.

“It is management’s belief that these products will become an increasingly important component of the medical and recreational use cannabis markets in the future.” said John Arbuthnot, Chief Executive Officer of Delta 9. “A continually expanding line of high-quality cannabis products is a major goal for the Company over this year and this is the first of what we hope are several milestones in our progress.”

Products for Future Development

Nanosphere Evolve Products
Delta 9 has acquired an exclusive license in Canada to manufacture and sell products made with the patented technology of Nanosphere Health Sciences Inc. (“NanoSphere”) for the delivery of cannabinoids via nanoparticle technology. The two companies are in the process of developing the first product for Canada; an intraoral cannabis oil containing cannabinoid nanoparticles.

The NanoSphere delivery system for cannabis works by nano-encapsulating active ingredients in phospholipid membranes for transportation through the skin and mucosa into the bloodstream within minutes. Cannabis applications of the technology include transdermal viscous gels, intranasal products and intraoral products, all of which provide rapid results, precise dosages and high bioavailability. The NanoSphere delivery system of cannabis can eliminate the need for inhalation or ingestion of cannabis, offering users a potentially safer and more effective method of consumption.

Dried Sift Cannabis
The Company is currently developing its “Sapphire” line of dried sift cannabis products for the recreational cannabis market which involves sifting the Company’s blended products and refining them, leaving more of the high potency resin glands and less of the low potency plant material. The final product is a yellow/brownish powder and has a potency that is up to triple that of the whole flower dried cannabis materials. The Company plans to release dried sift products in the recreational cannabis market in the third quarter of 2019. Management expects that retail pricing for these products will be up to $30 per gram.

Oils, Extracts, and Derivative Products
The Company continues to develop and expand its in-house oils production capacity and is working with partners regarding its strategy for new cannabis extracts and derivative products once the federal government finalizes its expanded extract regulations, which are expected to become effective in 2019.

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca

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