Mr. John Arbuthnot reports

DELTA 9 REPORTS YEAR-END FINANCIALS FOR 2023

Delta 9 Cannabis Inc. has released its financial and operating results for the three-month period and year ending Dec. 31, 2023.

Financial highlights for the year ending Dec. 31, 2023:

• Net revenues of $71.1-million in 2023, an increase of 12 per cent versus $63.2-million for the year ending Dec. 31, 2022.
• Gross profit of $18-million in 2023, an increase of 39 per cent versus $12.9-million for the year ending Dec. 31, 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.4-million in 2023 versus an adjusted EBITDA loss of $5.2-million for the year ending Dec. 31, 2022.
• Loss from operations of $13.5-million in 2023 versus a loss from operations of $20.3-million for the year ending Dec. 31, 2022.
• Cash flows provided from operations of $4.2-million in 2023 versus cash flows used in operations of $3.7-million for the year ending Dec. 31, 2022.

Financial highlights for the three-month period ending Dec. 31, 2023:

• Quarterly net revenues of $17.5-million for the three-month period ending Dec. 31, 2023, a decrease of 1 per cent versus $17.6-million for the three-month period ending Dec. 31, 2022.
• Gross profit of $3.6-million for the three-month period ending Dec. 31, 2023, versus $3.4-million for three-month period ending Dec. 31, 2022.
• Adjusted EBITDA of $1.5-million for the three-month period ending Dec. 31, 2023, compared with an adjusted EBITDA loss of $1.5-million for the three-month period ending Dec. 31, 2022.

"We are pleased to report record fourth-quarter and year-end results for 2023, demonstrating the versatility of our business model with measurable improvements versus our 2022 year-end results," said John Arbuthnot, chief executive officer of Delta 9 Cannabis. "Challenges persist in the Canadian cannabis industry, which continues to struggle with intense competition resulting in margin compression and affecting overall growth. We remain confident that Delta 9 will be able to navigate the industry challenges, and return the company to growth and profitability in the coming quarters."

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 three months and year ending Dec. 31, 2023, filed on SEDAR+.

Two thousand twenty-three year-end results conference call

A conference call to discuss the above results is scheduled for April 1, 2024. The conference call will be hosted that day at 11 a.m. Eastern Time by Mr. Arbuthnot, chief executive officer, and Jim Lawson, chief financial officer, followed by a question-and-answer period.

Date:  April 1, 2024

Time:  11 a.m. ET

Dial in number:  1-800-717-1738

Replay:  1-888-660-6264; available until 12 a.m. ET, May 1, 2024

Replay passcode:  98392 followed by the pound key

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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