WINNIPEG, Manitoba, Oct. 29, 2020 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) is pleased to provide guidance on select financial results of the Company for the third quarter of 2020 based on preliminary results:
| • | The Company anticipates revenues for the three-month period ending September 30, 2020 to be between $12.9 million and $13.2 million, compared with: | |||
| ° | $6.7 million for the third quarter of 2019. | |||
| ° | $13.0 million sequentially for the second quarter of 2020. | |||
| • | Based on preliminary results, the Company anticipates revenues for the nine-month period ending September 30, 2020 to be between $37.5 million and $38 million, compared to $21.2 million for the same period last year. | |||
| • | The Company anticipates direct cannabis production cost per gram of $0.74 and total cost per gram of $0.86 for the third quarter 2020, compared with: | |||
| ° | $1.08 and $1.21 respectively for the third quarter of 2019. | |||
| ° | $0.96 and $1.08 respectively for the second quarter of 2020. | |||
| • | Delta 9 anticipates total grams of cannabis produced of 1,908,875 for the third quarter of 2020, compared with: | |||
| ° | 871,516 grams of cannabis for the third quarter of 2019. | |||
| ° | 1,649,347 grams of cannabis for the second quarter of 2020. | |||
| • | Management believes that continued revenue growth and disciplined cost management initiatives will allow the Company to continue to achieve positive cashflows from operations in fiscal 2020. | |||
"We are pleased with the performance of our three main business segments, especially the revenue growth generated from our retail stores," said John Arbuthnot, CEO of Delta 9. “Delta 9 has stayed focused on its strategy of rolling out new retail stores to lock in new sales channels for Delta 9 products and maintain our price leadership strategy in each new market we enter.”
Delta 9 will provide investors with a full breakdown on its progress in these areas as part of its third quarter results which will be released on November 12, 2020, before markets open. This will be followed by a conference call on Thursday, November 12, 2020, the details of which can be found at the end of this release.
The preliminary estimated financial results and other data for the three-month period ended September 30, 2020 set forth above are subject to the completion of the Company's financial closing procedures. These preliminary estimated financial results have been prepared by and are the responsibility of the Company's management. The Company’s independent registered public accounting firm, Baker Tilly HMA LLP, has reviewed these preliminary estimated financial results and other data, but did not audit or express an opinion on them.
The Company currently expects that its final results of operations and other data will be consistent with the estimates set forth above, but such estimates are preliminary and the Company’s actual results of operations and other data could differ materially from these estimates due to the completion of its financial closing procedures, final adjustments and other developments that may arise between now and the time such consolidated financial statements for the period ended September 30, 2020 are issued.
2020 Third Quarter Results Conference Call
Delta 9 will release the results for the third quarter of 2020 on November 12, 2020 before the market opens. A conference call to discuss the above results is scheduled for November 12, 2020, pre-market. The conference call will be hosted that day at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period.
| DATE: | November 12, 2020 |
| TIME: | 9:00 am Eastern Time |
| Dial in # | 1-888-886-7786 |
| REPLAY: | 1-877-674-6060 |
| Available until 12:00 midnight Eastern Time, February 12, 2021 | |
| Replay passcode: | 617905# |
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 Delta 9’s estimated financial results for the quarter ended September 30, 2020. 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 the Company’s actual financial results being different from its estimates as well as 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.