Mr. John Arbuthnot reports

DELTA 9 REPORTS FIRST QUARTER 2023 RESULTS

Delta 9 Cannabis Inc. has released financial and operating results for the three-month period ended March 31, 2023.

Financial highlights for Q1 2023:

• Net revenue of $16.9-million versus $12.5-million for the three-month period ended March 31, 2022, an increase of 35 per cent;
• Gross profit, before changes in the fair value of biological assets, of $4.2-million versus $3.0-million for the three-month period ended March 31, 2022, an increase of 42 per cent;
• Net income (loss) from operations of ($1.2-million) versus ($2.9-million) for the three-month period ended March 31, 2022;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (loss) was ($475,595) versus adjusted EBITDA loss of ($1.7-million) for the three-month period ended March 31, 2022;
• Cash used in operations was $89,530 versus cash used in operations of $2.5-million for the three-month period ended March 31, 2022.

"During the first quarter, we continued to focus on our highest priorities of sustaining and growing our revenues across our core business units while optimizing our vertically integrated business model to achieve positive cash flow from operations in 2023," said John Arbuthnot, chief executive officer of Delta 9. "We will continue our relentless focus on cost and operational efficiencies and strengthening our balance sheet to deliver sustained, profitable growth for our shareholders. Delta 9 is well positioned to generate $3-million to $4-million in efficiencies from various cost-cutting measures announced earlier this year as we pursue our path to profitability."

A comprehensive discussion of Delta 9's financial position and results of operations is provided in the company's management discussion and analysis for the first quarter ended March 31, 2023, filed on SEDAR and can be found at SEDAR.

Q1 results 2023 conference call

Delta 9 has scheduled a conference call to discuss the results for its first quarter ended March 31, 2023. The conference call will be hosted May 16, 2023, at 10 a.m. Eastern Time by Mr. Arbuthnot, and Jim Lawson, chief financial officer, followed by a question-and-answer period.

Date:  May 16, 2023

Time:  10 a.m. EST

Dial-in number:  1-888-886-7786 -- toll-free North America

Replay information:  1-877-674-6060

Replay passcode:  526708 followed by the number sign, available until June 16, 2023

About Delta 9 Cannabis Inc.

Delta 9 is a vertically integrated cannabis company focused on bringing the highest-quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels, and sells its cannabis grow pods to other businesses. Delta 9's wholly owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis, and operates a 95,000-square-foot production facility in Winnipeg, Man., 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 OTCQB under the symbol DLTNF.

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