Ms. Alexa Goertzen reports

DELTA 9 TO SUPPLY BULK CANNABIS TO LEADING CANADIAN LICENSED PRODUCER

Delta 9 Cannabis Inc. has entered into a supply agreement for the sale of bulk cannabis flower with a leading Canadian licensed producer.

Under the terms of the supply agreement, the company will cultivate select cannabis cultivars for the LP based on a rolling-12-month forecast. Over the first 12 months of the supply agreement, the company anticipates a contract value of $4.62-million.

"This contract is pivotal for Delta 9 as we begin to see a strengthening of demand in the domestic market for high-quality cannabis flower," said Alexa Goertzen, vice-president of cannabis sales. "As a low-cost producer, Delta 9 is well positioned to offer our bulk customers attractive contract growing opportunities. We are continuing to grow our bulk wholesale business as consistent and profitable opportunities present themselves."

On Jan. 9, 2023, the company announced that it would be reducing its cultivation capacity at its Winnipeg-based facilities by approximately 40 per cent from 10,000 kilograms to 6,000 kilograms annually. The company anticipates increasing its cultivation capacity in 2024 to 10,000 kilograms annually to meet its commitments under the supply agreement. The company plans to make its first scheduled shipment under the supply agreement in the second quarter of 2024.

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 OTC under the symbol DLTNF.

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