WINNIPEG, Manitoba, Oct. 20, 2020 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) today announced that the Toronto Stock Exchange (“TSX”) has approved the Company’s normal course issuer bid (the “NCIB”). Under the NCIB, the Company can purchase: (i) up to an aggregate of 2,802,503 common shares of the Company (“Common Shares”), representing 5% of the public float of Common Shares as at October 20 2020; and (ii) up to an aggregate of $1,180,000 principal amount of 8.5% unsecured convertible debentures of the Company (“Debentures”), representing 10% of the public float of Debentures as at October 20, 2020.
Purchases of Common Shares and Debentures pursuant to the NCIB may be made through the facilities of the TSX and alternative Canadian trading systems commencing on October 26, 2020 and ending on October 25, 2021, or an earlier date in the event that the Company purchases the maximum number of the Common Shares and Debentures available under the NCIB. The Company will pay the market price at the time of acquisition for any Common Shares and Debentures purchased through the facilities of the TSX. All Common Shares and Debentures acquired directly by the Company under the NCIB will be cancelled.
As at October 20, 2020: (i) there were 90,203,534 Common Shares and $11,800,000 principal amount of Debentures issued and outstanding; (ii) 34,152,993 Common Shares and no Debentures were held by the senior officer and directors of the Company; and (iii) the public float of the Company was 56,050,054 Common Shares and $11,800,000 principal amount of Debentures.
The average daily trading volume of the Common Shares and Debentures for the six-month period ended September 30, 2020 was 111,829 Common Shares and 43,000 principal amount of Debentures. Daily purchases will be limited to 27,957 Common Shares and $1,000 principal amount of Debentures, other than block purchase exceptions.
The Company sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares and Debentures may not fully reflect the value of the Common Shares and Debentures. The Company believes that, in such circumstances, the purchase of Common Shares and Debentures represents an accretive use of capital.
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 80,000 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 OTCQX under the symbol "VRNDF". For more information, please visit www.delta9.ca.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to the Company’s intention to purchase Common Shares and Debentures under the NCIB. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 19, 2020 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.