Mr. John Arbuthnot reports

DELTA 9 EXPANDS DISTRIBUTION BUSINESS IN MANITOBA

Delta 9 Cannabis Inc., through its wholly owned subsidiary Delta 9 Logistics Inc., intends to expand its distribution and cross-docking business in Manitoba as a result of Manitoba Liquor & Lotteries Corp. (MBLL) changes to wholesale distribution regulations.

Effective July 31, 2023, MBLL implemented a set of new regulatory enhancements intended to improve lead times for the delivery of cannabis shipments from suppliers and distributors to Manitoba-based retailers.

The enhancements will allow the company to bring additional cannabis inventory from third party suppliers into the province, closer to the operating retail network, and significantly improve the lead time and fulfilment cycles experienced by retailers. This inventory no longer needs to be subject to a purchase order to enter the province. MBLL also announced it will remove the previous eight-day holding period for retailer orders, allowing purchase orders to be shipped immediately.

"We view these announcements from MBLL as material in improving the supply chain cycle efficiency for Manitoba-based retailers and improving logistics cost-efficiencies for out of province suppliers," said John Arbuthnot, chief executive officer of Delta 9. "We believe that these changes will allow us to significantly expand our list of cross-docking and distribution customers and increase overall revenues from this new growth segment. We applaud MBLL and the Manitoba government who have taken several pro-active steps in the past number of months to support the cannabis industry including the repeal of the 6-per-cent retail social responsibility fee."

The company anticipates that the move to warehouse inventory in Manitoba at its Winnipeg-based facilities will allow it to shorten lead times for deliveries to three to five business days, from three to five weeks previously. The company currently operates an 11,000-square-foot cannabis warehousing and distribution operation licensed by MBLL and the Liquor Gaming and Cannabis Authority (LGCA). The company intends to begin executing expanded distribution agreements with suppliers immediately and anticipates that distribution shipments of locally stored products will begin in Q3 2023.

"Our cross-docking, distribution and logistics services further enhance our strategic relationships with key licensed producer partners across all segments of Delta 9's business in Canada and we look forward to adding efficiency and a high level of service to customers in Manitoba," said Mr. Arbuthnot.

About Delta 9 Cannabis Inc.

Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest-quality cannabis products to market. Delta 9's wholly owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 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 OTC under the symbol DLTNF.

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