Press Release
WINNIPEG, MB – May 15, 2024 – DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month period ending March 31, 2024.
Financial Highlights for the three-month period ending March 31, 2024
“During the first quarter, we continued to focus on sustaining revenues across our core business units while optimizing our margins,” said John Arbuthnot, CEO of Delta 9. “We will continue our relentless focus on cost and operational efficiencies and strengthening our balance sheet to deliver sustained, profitable growth for our shareholders. We believe that we now have the necessary scale and platform to create sustainable shareholder value. We expect our Canadian retail network to continue to grow at a normalized pace while our internal focus on cost savings continues to produce tangible results. We look forward to updating investors on our improved performance throughout the rest of 2024.”
Summary of Quarterly Results:
Consolidated Statement of Net Income (Loss) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
Revenue | $18,252,096 | $18,436,279 | $17,474,584 | $16,489,915 |
Cost of Sales | 13,039,705 | 13,502,045 | 13,860,572 | 11,835,302 |
Gross Profit Before Unrealized Gain From Changes In Biological Assets | 5,212,391 | 4,934,234 | 3,614,012 | 4,654,613 |
Unrealized gain from changes in fair value of biological assets (Net) | (1,581,124) | (2,210,577) | (1,872,737) | (196,418) |
Gross Profit | $3,631,267 | $2,723,657 | $1,741,275 | $4,458,195 |
Expenses | ||||
General and Administrative | 3,087,652 | 2,692,636 | 2,065,511 | 3,250,776 |
Sales and Marketing | 4,043,689 | 4,007,626 | 3,849,220 | 3,853,500 |
Share Based Compensation | – | 507,000 | 123,553 | 312,631 |
Total Operating Expenses | $7,131,341 | $7,207,262 | $6,038,284 | $7,416,907 |
Adjusted EBITDA (Loss) 1 | 1,361,821 | 1,030,925 | 1,459,414 | 5,270 |
Income (Loss) from Operations | $(3,500,074) | $(4,483,605) | $(4,297,009) | $(2,958,712) |
Other Income/ Expenses | 1,460,388 | (904,602) | (1,767,757) | (1,976,536) |
Net Income (Loss) | $(2,039,686) | $(5,388,207) | $(6,064,766) | $(4,935,248) |
Basic and Diluted Earnings (Loss) Per Share | $(0.02) | $(0.03) | $(0.02) | $(0.02) |
A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the three-month period ending March 31, 2024, filed on SEDAR on May 15, 2024, and can be found at www.sedar.ca.
2024 First Quarter Results Conference Call
A conference call to discuss the above results is scheduled for May 16, 2024. The conference call will be hosted that day at 11:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.
DATE: | May 16, 2024 |
TIME: | 11:00 am Eastern Time |
Dial in # | 1-800-717-1738 |
REPLAY: | 1-888-660-6264 Available until 12:00 midnight Eastern Time, June 15, 2024 |
Replay passcode: | 78391 # |
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca
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 an 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. Delta 9’s shares trade on the Toronto Stock Exchange under the symbol “DN” and on the OTC under the symbol “DLTNF”. For more information, please visit www.delta9.ca.
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