WINNIPEG, Manitoba, Aug. 31, 2021 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”), is pleased to announce that it has closed a transaction with 1884356 Alberta Ltd. (the “Vendor”) to acquire all or substantially all of the Vendor’s assets relating to the operation of two retail cannabis stores in Edmonton, Alberta (the “Transaction”). The acquisition was completed through the Company’s wholly-owned subsidiary, Delta 9 Cannabis Store Inc. pursuant to an asset purchase agreement between Delta 9 Cannabis Store Inc. and the Vendor dated July 9, 2021.
"We are pleased to have finalized a transaction to enter the Edmonton retail cannabis market with a strong two-store coordinated presence,” said John Arbuthnot, CEO of Delta 9. "These two new Edmonton locations represent an expansion of Delta 9’s already successful presence in Calgary and Grande Prairie. We are very excited to be able to serve the Edmonton retail market as our expansion throughout Alberta continues.”
The purchase price paid by Delta 9 Cannabis Store Inc. relating to the Transaction was $2,350,000, subject to customary adjustments (the "Purchase Price"). $940,000 of the Purchase Price was satisfied through the issuance of 2,243,437 common shares in the capital stock of the Company (each a "Common Share") at a deemed price of $0.419 per Common Share, which is the 10-day volume weighted average price per Common Share on the Toronto Stock Exchange as at August 30, 2021. The balance of the Purchase Price was paid in cash, of which $175,000 remains held in escrow for a period of approximately six months.
The Company expects the Transaction to be accretive in 2021 and 2022 before synergies. The acquisition represents an attractive revenue multiple of approximately 0.48x annualized revenue.
The final closing of the Transaction remains subject to the approval of the Toronto Stock Exchange.
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 "DLTNF". 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 potential expansion plans and Toronto Stock Exchange approval for the Transaction being obtained. 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, as well as all risk factors set forth in the annual information form of Delta 9 dated March 31, 2021 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.
