Delta 9 Reports Financials for Q2 2023

WINNIPEG, Manitoba, Aug. 14, 2023 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTC: DLTNF) ("Delta 9" or the "Company"), is pleased to announce financial and operating results for the three-month and six-month period ending June 30, 2023.

Financial Highlights for the three-month period ending June 30, 2023

• Net revenue of $18.3 million for the second quarter of 2023, an increase of 4%, from $17.5 million for the same quarter last year.
  • Sequential net revenue increased 8% versus $16.9 million for the three-month period ending March 31, 2023.
• Gross profit of $5.2 million for the second quarter of 2023, an increase of 12%, from $4.6 million for the same quarter last year.
• Loss from operations of $(3.5) million for the second quarter of 2023 versus a loss from operations of $(3.4) million for the same quarter last year.
• Adjusted EBITDA of $1.4 million for the second quarter of 2023 versus an adjusted EBITDA (loss) of $(0.4) million for the same quarter last year.
  

Financial Highlights for the six-month period ending June 30, 2023

• Net revenue of $35.2 million for the first six months of 2023, compared to $30 million for the same period last year.
• Gross profit of $9.4 million for the first six months of 2023, versus $7.6 million for the same period last year.
• Loss from operations of $(4.7) million for the first six months of 2023 versus a loss from operations of $(6.4) million for the same period last year.
• Adjusted EBITDA of $0.8 million for the first six months of 2023 versus an adjusted EBITDA (loss) of $(2.1) million for the same period last year.
• Cash flows from operations of $2.0 million for the first six months of 2023.
  
  

John Arbuthnot, CEO of Delta 9, stated, "Our employees delivered a record second quarter with higher revenues sequentially, and year over year, and with better margins driven by the execution of our strategic plan. We are enjoying the gains from our retail expansion announced last year and from our cost saving initiatives announced in early January 2023. We are delivering on our commitment to grow revenue, drive operating efficiencies, and improve margins and profitability, all while investing in our industry-leading retail brands."

A comprehensive discussion of Delta 9's financial position and results of operations is provided in the Company's Management Discussion & Analysis for the three-month and six-month period ending June 30, 2023 filed on SEDAR on August 14, 2023 and can be found at www.sedar.com.

2023 Second Quarter Results Conference Call

A conference call to discuss the above results is scheduled for August 15, 2022. The conference call will be hosted that day at 11:00 p.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: [email protected]

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. 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 Inc., is a licensed producer of medical and recreational cannabis and operates an 95,000 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 OTC under the symbol "DLTNF". 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) the Company's plans to establish a chain of cannabis retail stores across Canada; and (ii) the anticipated production capacity of the Company's planned cannabis processing center. 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 all risk factors set forth in the annual information form of Delta 9 dated March 31, 2023 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.