NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WINNIPEG, Manitoba, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Delta 9 Cannabis Inc. (“Delta 9” or the “Company”) (TSX:DN) (OTCQX: VRNDF) is pleased to announce that is has entered into an agreement with Leede Jones Gable Inc. as the lead underwriter and sole bookrunner (the “Underwriter”), pursuant to which the Underwriter has agreed to purchase, on a bought-deal basis, 7,272,728 units (the “Equity Units”) for gross proceeds to the Company of $4,000,000.40 (the “Offering”) at a price of $0.55 per Equity Unit.
Each Equity Unit will consist of common share of the Company (a “Common Share”) and one half (1/2) of a Common Share purchase warrant (each whole purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.70 (the “Exercise Price”) at any time up to thirty-six (36) months following Closing (as defined below).
The Units will be offered by way of a short form prospectus to be filed in those provinces of Canada other than Quebec as the Underwriter may designate pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
The closing of the Offering is expected to occur on or about the week of December 21, 2020 (the “Closing”) and is subject to the Company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
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 https://invest.delta9.ca/.
For further information, please contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca
Cautionary Note Regarding Forward Looking Information:
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which are based upon Delta 9's current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Delta 9 to implement its business strategies; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Delta 9 does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Delta 9 to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Delta 9's Annual Information Form dated March 19, 2020 (the "AIF") and other disclosure documents of Delta 9 filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the AIF and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.