Delta 9 Update on Business to Business Activities

Delta 9 Cannabis provided investors with an update on its business to business (“B2B”) activities including sales of its proprietary “Grow Pod” systems, sales of cannabis genetics, and licensing and consulting services. These value-added B2B offerings provide Delta 9 with a diversified revenue stream.

During 2019, the Company invested in creating a stand-alone business unit for its B2B activities and has cultivated relationships across Canada. For the year ending December 31, 2019, Delta 9 received orders for 89 Grow Pods versus orders for 6 Grow Pods for the year ending December 31, 2018. These orders represented approximately $5.6 million in anticipated revenues from Grow Pod sales versus $0.24 million in the previous year.

“We have seen significant growth in our B2B segment over 2019. Our goal is to create an eco-system for cannabis entrepreneurs to cultivate premium craft cannabis using Delta 9’s Grow Pods, to provide them with consulting and licensing services, and to bring their products to market through Delta 9’s distribution channels,” said John Arbuthnot, CEO of Delta 9. “We offer a turnkey and state of the art solution for micro cultivators who in turn compliment our supply chain and provide a diversified channel for additional revenue.”

Grow Pods are 320 sq. ft. steel shipping containers that have been repurposed to support any growing methodology. Each Grow Pod can produce approximately 32 kg. of cannabis annually. The Grow Pods can be customised for flowering, trimming, cloning, research, testing, support and storage. The Grow Pods produce a standardized, quality assured product in a secure, low-risk environment.

Delta 9 has one of the largest selections of cannabis genetics in the industry and has a current offering of over 20 different varieties of cannabis for sale. The Company has packaged genetics offering for licensed third-party producers looking to expand their product line.

As a long-time licensed producer, Delta 9 has over six years’ experience in all aspects of Health Canada licensing and compliance procedures. As part of its B2B activities, Delta 9 provides licensing and consulting services to new and pre-licensed cannabis producers.