Delta 9 Achieves Milestone in Agreement with Micro Cultivation Partner

WINNIPEG, MB – December 22, 2020 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company"), is pleased to announce that it has completed its final services milestone under an agreement with Manitoba based Micro Cultivation partner, Alicanto Gardens Ltd. (“Alicanto”). Alicanto is an arm’s length third party in which the Company has no ownership control or interest.

On December 18, 2020, Alicanto confirmed it had reached its final milestone under the SCA and has been granted its cannabis micro cultivation licenses from Health Canada (the “Health Canada License”).

As one of Delta 9’s Micro Cultivation partners, Alicanto entered into a Strategic Cooperation Agreement (“SCA”) with the company whereby Delta 9 provides services relating to the cannabis production, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, marketing services to develop the Alicanto brand and other services supporting the acquisition of the Health Canada license.

“We are thrilled that Alicanto has received a Health Canada Licence for twelve of our proprietary and turn-key "Grow Pod" systems and has already received approval from the RM of Morris, Manitoba to build out a second production facility that will include another twelve Grow Pods”, said John Arbuthnot, Founder and CEO of Delta 9. “Our turnkey platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services.”

The Company's cannabis production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod", which are based on retrofitted 40-foot shipping containers. Alicanto’s production facility has been designed and built using this turnkey and state of the art Grow Pod system. Once cultivation begins, Delta 9 plans to purchase premium quality cannabis products from Alicanto for distribution through the Company's established distribution network, and through Delta 9's branded retail stores. Delta 9 has now successfully licensed over 100 Grow Pods in third party facilities across Canada.

“Alicanto is a family owned and self funded boutique cannabis grower based in Manitoba with plans to service the recreational market in Western Canada.” said owner Waldemar Heidebrecht of Alicanto. “We have been able to leverage an existing 4,000 square foot warehouse facility from a previous business venture and convert it to a state-of-the-art production facility that incorporates all the latest technology for growing cannabis.”

Alicanto has developed a state-of-the-art micro cultivation facility on an 80-acre parcel of land, about ten minutes from Morris and an hour south of Winnipeg. This new facility houses a micro cultivation license, including twelve new grow pod systems, and a proprietary craft growing approach developed by Delta 9. Alicanto’s initial plan is to focus on growing a single strain of high THC before it expands its product offering.

The well-rounded Alicanto team has a strong entrepreneurial background, with extensive experience in building a $50 million distribution business from the ground up over the last decade. The Alicanto team is committed and passionate about growing premium craft cannabis and looks forward to building a leading craft cannabis company in Manitoba.
 
For more information contact:
 
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: ian.chadsey@delta9.ca
 
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. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 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 OTCQX under the symbol "VRNDF". For more information, please visit www.delta9.ca.

Disclaimer for Forward-Looking Information
 
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.
 
Forward looking statements in this news release include statements relating to: (i) Alicanto 's proposed micro cultivation operations; (ii) Delta 9's intention to sell Alicanto 's premium cannabis products; and (iii) Delta 9's development of micro cultivation services. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including Alicanto’s cannabis production not being as anticipated, as well as all risk factors set forth in the annual information form of Delta 9 dated March 19, 2020 which has been filed on SEDAR.
 
No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
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