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Delta 9 Closes of $23 Million CAD Bought Deal Financing

December 28, 2017


WINNIPEG, Dec. 28, 2017 /CNW/ - Delta 9 Cannabis Inc. (TSXV:NINE) ("Delta 9" or the "Company") is pleased to announce that it has closed its previously announced bought deal financing of 8,521,500 units (the "Units") at a price of C$2.70 per Unit (the "Offering Price") for aggregate gross proceeds to Delta 9 of C$23,008,050 (the "Offering"). The Offering was conducted by a syndicate of underwriters led by Canaccord Genuity Corp., and including PI Financial Corp., Beacon Securities Limited, Haywood Securities Inc. and Mackie Research Capital Corporation (the "Underwriters"). The Offering included 1,111,500 Units sold pursuant to the full exercise of the Underwriters' over-allotment option. Each Unit consists of one common share of the Company (a "Common Share") and one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one Common Share (a "Warrant Share") at an exercise price of C$3.25 per Warrant Share for a period of 30 months from the closing of the Offering. The Company has applied to list the warrants for trading on the TSX Venture Exchange. The Warrants will be listed for trading subject to meeting distribution requirements and the other requirements of the TSX Venture Exchange.


The net proceeds of the Offering will be used to expand Delta 9's cannabis cultivation operations and general corporate purposes.


"We were delighted to find that there was such overwhelming demand for the offering", said Delta 9 Chief Executive Officer, John Arbuthnot. "We believe that the proceeds from the base offering provide us with the ability to achieve our stated goal of having 373 grow pods producing 12,000 kilograms of cannabis on an annual basis by the end of 2019. It is our further expectation that the additional proceeds from the over-allotment option as well as anticipated revenues from the sale of cannabis will enable Delta 9 to build additional grow pods and increase its annual cannabis production capacity to well beyond 12,000 kilograms per year by mid-2020."


The Units were offered by way of a short form prospectus filed in all of the provinces of Canada except Québec pursuant to National Instrument 44-101 Short Form Prospectus Distributions.


The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.


About Delta 9 Cannabis Inc.


Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR and operates an approximately 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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 closing of the Offering, the use of proceeds of the Offering, construction of new grow pods and future revenues from the sale of cannabis. 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 that Delta 9's currently contemplated expansion and development plans may cease or otherwise change, Delta 9's production of cannabis may be lower than expected, Delta 9 may not obtain the required approvals from Health Canada, demand for Delta 9's products may be lower than anticipated, Delta 9's cost to produce its grow pods may be higher than expected and all other risk factors set forth in the filing statement of Delta 9 dated October 25, 2017 and the final prospectus of Delta 9 dated December 20, 2017, both of which have 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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Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.