An anonymous director reports

DELTA 9 ANNOUNCES NOTICE OF SALES AND INVESTMENT SOLICITATION PROCESS FOR DELTA 9 BIO-TECH INC.

On July 24, 2024, the Court of King's Bench of Alberta granted an order approving a sales and investment solicitation process to solicit interest in, and opportunities for, a sale of, or investment in, all or part of the assets of the business of Delta 9 Cannabis Inc.'s wholly owned subsidiary, Delta 9 Bio-Tech Inc. The SISP was approved contemporaneously with an amended and restated initial order under the companies' Creditors Arrangement Act (Canada) granted to the company by the Court of King's Bench of Alberta.

The opportunity may include one or more of a restructuring, recapitalization, or other form or reorganization of the business and affairs of Delta 9 Bio-Tech as a going concern, or a sale of all, substantially all, or one or more components of Delta 9 Bio-Tech's assets and business operations as a going concern or otherwise.

The property includes a 95,000-square-foot Health Canada-approved cannabis production facility located at 760 Pandora Ave. East, Winnipeg, Man. The business has been able to cultivate premium quality cannabis at a cash cost of 60 cents to 70 cents per gram with an industry-competitive cost structure (favourable labour, land leasing and power cost). Further, management of the company believes that an opportunity exists for modest capital investment to expand production and further reduce costs.

Interested parties wishing to pursue the opportunity are to submit a formal binding offer to Alvarez & Marsal Canada Inc., the monitor appointed pursuant to the CCAA, in accordance with the SISP, by 5 p.m. Mountain Time on Oct. 28, 2024.

Copies of the SISP procedure document and other court filed materials are available on the monitor's webiste.

Interested parties who wish to obtain additional information and participate in the SISP may contact the monitor.

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, 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.

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