Delta 9 Signs LOI with Kalapa & CanPharma for Export of Cannabis to Germany

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WINNIPEG, March 27, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce that the Company has signed a non-binding letter of intent (the "LOI") with CanPharma GMBH ("CanPharma") and Global Group Kalapa S.L. ("Kalapa") for the exportation of medical cannabis to Germany.

Manitoba-based Delta 9 is one of Canada's oldest medical cannabis companies, being the fourth company in Canada awarded a License to Produce under the Access to Cannabis for Medical Purposes Regulations.

Kalapa is based in Barcelona, Spain and owns a number of subsidiary companies, including a cannabidiol extracts (CBD) production and distribution company and the Kalapa Clinic, the first European consultancy focused on medical co-treatment with cannabinoids. Kalapa is a joint venture partner with CanPharma, a Berlin-based firm that is attempting to acquire a cannabis import license for its operations in Germany.

Under the LOI, Delta 9 has agreed to export a minimum of 40 kilograms of cannabis a month (480 kilos per year) and an additional amount of cannabis extracts to CanPharma for sale to medical cannabis patients in Germany. The agreement would also commit Delta 9 to provide additional cannabis for the German market in such amounts as may be mutually agreed by the parties.

Delta 9 CEO John Arbuthnot says the agreement with Kalapa is part of the Company's continual development of markets for its cannabis-related products. "We've successfully bid for a retail license in Manitoba, we've established ourselves in Alberta, we've acquired national distribution agreements, and now our focus is on establishing the Delta 9 brand abroad, beginning in Europe," Arbuthnot said. "We feel very fortunate to be working with a pioneer in cannabinoid treatment in the European Union, and very much look forward to expanding our business together."

Dr. Henrik Sprengel, CEO of Kalapa, says the Delta 9 partnership reflects the strategic importance that Kalapa assigns the German market. "When medical cannabis was legalized in March 2017 only about 1,000 patients had a special authorization from the German cannabis agency (Bundesopiumstelle)," Sprengel said. "But estimates at the beginning of 2018 show rapid growth, with more than 30,000 cannabis patients existing in Germany today. Especially in Germany we have experienced a sharp increase in the number of requests for consultations with our doctors, so we are very keen to offer the best cannabinoid therapies possible to this growing client base."

The LOI is a first step in establishing a binding formal export agreement with Kalapa and CanPharma. Before signing a formal export agreement, Delta 9 must: (i) acquire a Dealer License from Health Canada in order to legally export cannabis; (ii) acquire a Good Manufacturing Practices (GMP) certification; and (iii) satisfy an onsite audit of production practices by German authorities. In addition, the execution of the formal export agreement is subject to the completion of satisfactory due diligence by all parties.

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 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE". See more at http://delta9.ca

About Global Group Kalapa SL and CanPharma GMBH
Global Group Kalapa SL (www.kalapa-project.com)  is a holding company based in Barcelona, Spain. It is owner of Kalapa Clinic - the first pan-European medical consultancy specializing in treatments with cannabinoids - as well as of KSK Labs, a producer and manufacturer of products based on CBD. Kalapa furthermore is a joint venture partner in other projects with medicinal cannabis, one of them being CanPharma (www.canpharma.de), an applicant for an import and distribution license in Germany.

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 execution of a formal export agreement with CanPharma and Kalapa; (ii) Delta 9's acquisition of all required permits and licenses necessary to export cannabis products; and (iii) the size of the medical cannabis market in Germany. 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.