Delta 9 qualifies for retail licence RFP in Manitoba

Delta 9 Cannabis Inc. has qualified for the next round of retail licences to be issued for cannabis outlets in the province of Manitoba.

Delta 9 was notified in a letter from Manitoba Growth, Enterprise and Trade that the Company has passed the initial screening for retail store applicants, and will be included in a pre-qualified list for the opportunity to enter a ‘lottery’ for a cannabis retail store license. The timing of the lottery has not yet been determined.

Delta 9 CEO John Arbuthnot says the Province has indicated that the current licensing Request for Proposals (RFP # 10Q7232018) is primarily aimed at choosing operators for cannabis retail outlets in smaller, rural communities in Manitoba.

“Both the provincial and federal governments are taking these actions in order to pull the cannabis trade away from illegal, black market operators,” Arbuthnot explained. “For this reason, providing access to legal cannabis in both large urban centres and in small rural centres is considered a high priority.”

“As we have said in the past, we are a Manitoba company and we share those goals with the Province. We have made it very clear that we will help wherever possible to bring legal cannabis to both urban and rural markets as quickly as possible.”

Delta 9 already holds a license to build and operate retail stores in the Province of Manitoba, following an announcement by the government in February of this year. The current RFP is intended to extend the provincial government’s licensing of cannabis operations specifically to smaller towns that would otherwise experience difficulties accessing legal cannabis when the federal Cannabis Act takes effect on October 17, 2018.

Delta 9 has been granted site specific licenses for its first two retail outlets in Thompson, Manitoba and in the St. Vital area of Winnipeg. The Company is also awaiting the finalization of two more site specific agreements for retail cannabis outlets in the downtown core of Brandon, Manitoba and in the Osborne Village area of Winnipeg.

The Company also wishes to announce that Delta 9 has agreed to extend a contract for marketing services (the “Services”) with Hybrid Financial Ltd. (“Hybrid”), with the new contract to take effect today, October 1, 2018. The contract is for an initial period of three months and then shall be renewed automatically on a monthly basis unless terminated by the Company.

The Services will include, but not be limited to, assisting in all aspects of a marketing campaign for the Company, including: direct telephone marketing to US and Canadian investment advisors; an email marketing campaign to US advisors;

reporting activity and results to Delta 9 on a regular basis.

Hybrid has agreed to comply with all applicable securities laws and the policies of the TSX Venture Exchange in providing the Services.

About Delta 9 Cannabis Inc.

Delta 9 Cannabis was the fourth producer in Canada licensed to produce legal cannabis. Delta 9 now operates its wholly-owned subsidiary, Delta 9 Bio-Tech Inc., as a licensed producer of medical marijuana pursuant to the ACMPR and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 also owns 50 per cent of the 70,000 square foot Delta West facility in Alberta, and co-owns the Delta West Lifestyles cannabis retail operation. Delta 9’s shares trade on the TSX Venture Exchange under the symbol “NINE”.