Delta 9 Achieves Milestone in Agreement with Micro Cultivation Partner - Prairie Craft Canopy

Delta 9 Achieves Milestone in Agreement with Micro Cultivation Partner - Prairie Craft Canopy

WINNIPEG, MB – December 10, 2020 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company"), is pleased to announce that it has completed its final services milestone under an agreement with Saskatchewan based Micro Cultivation partner, Prairie Craft Canopy (“PCC”). PCC is an arm’s length third party in which the Company has no ownership control or interest.

As one of Delta 9’s Micro Cultivation partners, PCC entered into a Strategic Cooperation Agreement (“SCA”) with the company whereby Delta 9 provides services relating to the cannabis production, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, marketing services to develop the PCC brand and other services supporting the acquisition of the Health Canada license.

On December 4, 2020, PCC confirmed it had reached its final milestone under the SCA and has been granted its cannabis micro cultivation licenses from Health Canada (the “Health Canada License”).

“We are delighted that Prairie Craft Canopy has received a Health Canada Licence for twelve of our proprietary and turn-key "Grow Pod" systems and has plans to apply for a second Health Canada licence to expand their operations that will include another twelve Grow Pods”, said John Arbuthnot, Founder and CEO of Delta 9. “Our turn key platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services.”

The Company's cannabis production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod", which are based on retrofitted 40-foot shipping containers. PCC’S facility has been designed and built using this turn key and state of the art Grow Pod system. Once cultivation begins, Delta 9 plans to purchase premium quality cannabis products from PCC for distribution through the Company's established distribution network, and through Delta 9's branded retail stores. Delta 9 has now successfully licensed over 100 Grow Pods in third party facilities across Canada.

“Prairie Craft Canopy is a privately owned and self funded boutique cannabis cultivator based in the Prairies with plans to service the wellness and recreational markets across Canada.” said Co-owner’s Doug Trevena and Nathan Seon of Prairie Craft Canopy. “We are proud that we took every precaution to build a, state of the art, 8,000 square foot production facility that incorporates all the latest technology for growing cannabis and provides room to double the size of our operations in the future.”

PCC has developed a state-of-the-art micro cultivation facility on a 10-acre parcel of land, beside some of the largest agricultural research focused companies in North America. The facility is in the RM of Edenwold No.158 just minutes from Regina, Saskatchewan. This new facility houses a micro cultivation license, including twelve new grow pod systems, and a proprietary craft growing approach developed by PCC.
 
The facility includes some of the latest technology surrounding climate control and grow room automation. PCC plans to incorporate more innovative sustainability in future phases of expansion. PCC expects this facility to be the first step in a more significant growth strategy, as it makes plans for a second micro cultivation license and that will include another twelve-grow pod production capability in the near term.

The well-rounded PCC Team has a strong entrepreneurial background, with an executive team that has many years experience in growing start-up companies. The PCC Team is committed and passionate about growing premium craft cannabis and looks forward to building a leading craft cannabis company in Saskatchewan.

PCC expects to be in production by January, 2021 with plans to grow a unique strain of premium craft cannabis that consumers are looking for. The entire PCC Team have been very happy working with the Delta 9 team and thankful for their support and encouragement. PCC looks forward to bringing a premium craft cannabis flower to customers across the Delta 9 network of retail locations very soon in the new year.
 
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. 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: (i) PCC's proposed micro cultivation operations; (ii) Delta 9's intention to sell PCC's premium cannabis products; and (iii) Delta 9's development of micro cultivation services. 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 PCC’s cannabis production not being as anticipated, 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.
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