Mr. Ian Chadsey reports

DELTA 9 REPORTS FINANCIALS FOR Q2 2023

Delta 9 Cannabis Inc. has released its financial and operating results for the three-month and six-month period ending June 30, 2023.

Financial highlights for the three-month period ending June 30, 2023:

• Net revenue of $18.3-million for the second quarter of 2023, an increase of 4 per cent, from $17.5-million for the same quarter last year.
• Sequential net revenue increased 8 per cent versus $16.9-million for the three-month period ending March 31, 2023.
• Gross profit of $5.2-million for the second quarter of 2023, an increase of 12 per cent, from $4.6-million for the same quarter last year.
• Loss from operations of $(3.5)-million for the second quarter of 2023 versus a loss from operations of $(3.4)-million for the same quarter last year.
• Adjusted EBITDA of $1.4-million for the second quarter of 2023 versus an adjusted EBITDA (loss) of $(0.4)-million for the same quarter last year.

Financial Highlights for the six-month period ending June 30, 2023

• Net revenue of $35.2-million for the first six months of 2023, compared to $30-million for the same period last year.
• Gross profit of $9.4-million for the first six months of 2023, versus $7.6-million for the same period last year.
• Loss from operations of $(4.7)-million for the first six months of 2023 versus a loss from operations of $(6.4)-million for the same period last year.
• Adjusted EBITDA of $0.8-million for the first six months of 2023 versus an adjusted EBITDA (loss) of $(2.1)-million for the same period last year.
• Cash flows from operations of $2.0-million for the first six months of 2023.

John Arbuthnot, CEO of Delta 9, stated, "Our employees delivered a record second quarter with higher revenues sequentially, and year over year, and with better margins driven by the execution of our strategic plan. We are enjoying the gains from our retail expansion announced last year and from our cost saving initiatives announced in early January 2023. We are delivering on our commitment to grow revenue, drive operating efficiencies, and improve margins and profitability, all while investing in our industry-leading retail brands."

A comprehensive discussion of Delta 9's financial position and results of operations is provided in the Company's Management Discussion & Analysis for the three-month and six-month period ending June 30, 2023 filed on SEDAR on August 14, 2023 and can be found on SEDAR.

2023 Second Quarter Results Conference Call

A conference call to discuss the above results is scheduled for August 15, 2022. The conference call will be hosted that day at 11:00 p.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.

DATE:  August 15, 2023

TIME:  11:00 pm Eastern Time

Dial in #  1-888-886-7786

REPLAY:  1-877-674-6060 Available until 12:00 midnight Eastern Time, September 15, 2023

Replay passcode:  823449 #

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. 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 an 95,000 square foot production facility in Winnipeg, Manitoba, 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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