Delta 9 Enters into Partnership with Westleaf Cannabis Inc. for Development of Alberta Facility

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WINNIPEG, April 19, 2018 /CNW/ - Delta 9 Cannabis Inc. (TSXV:NINE) ("Delta 9" or the "Company") is pleased to announce that it has entered into a limited partnership agreement with Westleaf Cannabis Inc. ("Westleaf") and Delta West Inc. for the joint development of a large-scale cannabis production facility located in Southern Alberta (the "Project"). The entering into of a non-binding letter of intent in connection with the Project was previously announced by the Company on January 24, 2018. Delta West Inc. acts as general partner of the limited partnership formed by Delta 9 and Westleaf.

Delta 9 and Westleaf each own a 50% interest in the Project and will each initially contribute $3 million to the limited partnership, to be used together with debt financing, for initial development of the Project. The Project includes the planned retrofit of an existing building that will be equipped to support indoor cannabis cultivation, research and development, processing, and extraction operations as well as house a fulfillment centre to supply Canadian and global markets.

Certain cannabis genetics product will be provided to the Project by Delta 9. Westleaf Cultivation Management II Inc., a wholly owned subsidiary of Westleaf, will act as manager of the Project. The Project is expected to be operational as early as the third quarter of 2018.

"We said last year we would be focusing heavily on expanding our footprint in the Prairie Provinces, and this partnership with Westleaf to build an Alberta facility is our biggest step yet in achieving that goal," said Delta 9 CEO John Arbuthnot. "Westleaf has an excellent team in place, and combined with our experience and proprietary technology, I believe the Delta West facility will add great value for our shareholders as legalization of cannabis proceeds this summer."

Westleaf president and co-founder Scott Hurd says the "Delta West" facility located in Calgary will be a world-class indoor cultivation, R&D, processing, extraction and fulfillment centre which will be capable of growing premium cannabis flower and producing a diversified derivative product offering to supply the Canadian and global markets. 

"Formalizing our partnership with Delta 9 is an important milestone for both our respective companies," said Westleaf President and co-founder Scott Hurd. "This strategic partnership allows us to accelerate our growth plans to become a leader in cannabis in the Canadian Prairie region, with a vertically integrated presence across Alberta, Saskatchewan and Manitoba. Our goal is for the 'Delta West' facility located in Calgary, Alberta to be a world-class indoor cultivation, R&D, processing, extraction and fulfillment centre which will be capable of growing premium cannabis flower and producing a diversified derivative product offering to supply the Canadian and global markets." 

The Delta West Project is expected to be operational as early as the third quarter of 2018.

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 also holds a conditional license for retail cannabis stores in Manitoba. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE". www.delta9.ca

About Westleaf Cannabis Inc. Westleaf is a private vertically integrated cannabis company headquartered in Calgary, Alberta. In addition to the Alberta Project, Westleaf is developing a cannabis production facility in Saskatchewan. Westleaf and its affiliates are pursuing retail distribution in both Alberta and Saskatchewan. For more information please contact  info@westleaf.com or visit our website at www.westleaf.com

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: (i) the details and anticipated timing of the completion of the Project; (ii) the licensing of the Project; (iii) sales of cannabis produced by the Project; (iv) conditions required to complete the Project; and (v) the future development plans of Westleaf. 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 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.

SOURCE Delta 9 Cannabis Inc.