Delta 9 Reports Record Revenue for Year End 2018
WINNIPEG, April 22, 2019 /PRNewswire/ – DELTA 9 CANNABIS INC. (TSXV: NINE) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the year ending December 31, 2018.
2018 Year End Financial Highlights
- Record operating revenues of $7.57M for the year ending December 31, 2018, up 702%, from $944,114 for the year ending December 31, 2017
- Record gross profit of $5.74M for the year ending December 31, 2018, up 1,200%, from $442,681 for the year ending December 31, 2017
- Net income was a loss of $8.61M for the year ending December 31, 2018, primarily as a result of expanding operations in advance of legalization of recreational use cannabis in the fourth quarter of 2018.
- The Company reported a strong financial position, with working capital of $20.7M and total assets of $46.0M, having raised over $30.7M in debt and equity during the year.
4th Quarter, 2018 Versus 3rd Quarter, 2018 Results
- Record operating revenues of $5.27M for the three-month period ending December 31, 2018, up 321%, from $1.25M for the three-month period ending September 30, 2018.
- Record gross profit of $3.34M for the three-month period ending December 31, 2018, up 118%, from $1.53M for the three-month period ending September 31, 2018.
- Prudent cost management narrowed quarterly loss to $2.17M ($0.02 per share) for the three-month period ending December 31, 2018 versus a loss of $2.23M ($0.03 per share) for the three-month period ending September 30, 2018.
Operational Highlights
- 2018 expansion increased the number of Delta 9 grow pods approved by Health Canada to 154 from 15, increasing anticipated annual production capacity to over 4,200 Kg of dried cannabis flower.
- Delta 9 announced its intention to become a preferred supplier of medical cannabis to Pharmasave, a national pharmacy chain with approximately 650 retail outlets.
- Delta 9 entered into a supply agreement for 2.3M grams of cannabis with the Province of Manitoba.
- Delta 9 entered into an agreement to supply 1,000 Kg of cannabis per year for 10 years to Auxly Cannabis Group Inc.
- Delta 9 now operates three retail stores, two in Winnipeg, Manitoba and one in Brandon, Manitoba. A fourth retail store in Thompson, Manitoba is scheduled to open in June, 2019.
2018 was a transformation year for Delta 9 as we proved our business model of using retrofitted shipping containers (Grow Pods) to grow cannabis successfully and produced a consistent high-quality cannabis product.
John Arbuthnot, CEO
Our strategy of being one of Canada’s only vertically integrated cannabis companies with licences for production, processing, distribution and retail operations is paying off and now producing significant financial results. The legalization of the adult consumer recreational market in October last year is only the beginning of many new and exciting opportunities for the Company.
Selected Annual Information:
Summary of Quarterly Results:
A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the year ended December 31, 2018 filed on SEDAR and can be found at www.sedar.com.
Year-End Results 2018 Conference Call
Delta 9 has scheduled a conference call to discuss the results for its fourth quarter and year ended December 31, 2018. The conference call will be hosted April 23, 2018 at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period.
Date: April 23, 2019
Time: 9:00 EST
Dial in #: 1-888-886-7786 – Toll free North America
Conference ID: 30846572
Replay information: 1-877-674-6060
Replay Password: 846572# (Available until July 23, 2019)
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 TSX Venture Exchange under the symbol “NINE” and on the OTCQX under the symbol VRNDF. For more information, please visit www.delta9.ca.
