Delta 9 Cannabis Inc. has closed a transaction with Auxly Cannabis Group Inc. and Kolab Project Inc. (the “Vendors”) to acquire all or substantially all of the Vendors’ assets relating to the operation of a retail cannabis store in Lloydminster, Saskatchewan (the “Transaction”). The acquisition is anticipated to be completed through the Company’s wholly-owned subsidiary, Delta 9 Cannabis Store Inc., and pursuant to the previously announced purchase agreement among Delta 9 Cannabis Store Inc. and the Vendors dated August 31, 2020.
“We are pleased to have finalized our transaction with Auxly and Kolab to establish Delta 9’s first foothold in the Saskatchewan retail cannabis market,” said John Arbuthnot, CEO of Delta 9. “Delta 9’s strategy of vertical integration is further strengthened with the move into Saskatchewan, and unites Delta 9’s Western Canada retail strategy by joining its existing Manitoba and Alberta retail presence, and expands its base for future expansion opportunities.”
The purchase price paid by Delta 9 Cannabis Store Inc. relating to the Transaction was $875,000, subject to customary adjustments (the “Purchase Price”). $750,000 of the Purchase Price was satisfied through the issuance of 1,282,270 common shares in the capital stock of the Company (each a “Common Share”) at a deemed price of $0.5849 per Common Share, which is the 15-day volume weighted average price per Common Share on the Toronto Stock Exchange as at the closing date for the Transaction. The balance of the Purchase Price was paid in cash.
The final closing of the Transaction remains subject to the approval of the Toronto Stock Exchange.
Delta 9 Cannabis Inc. 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. For more information, please visit www.delta9.ca.