Winnipeg, MB - TheNewswire - November 14, 2023 - 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 nine-month period ending September 30, 2023.

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

• Net revenue of $18.4 million for the third quarter of 2023, an increase of 18%, from $15.7 million for the same quarter last year. 

  • Sequential net revenue increased 1% versus $18.3 million for the three-month period ending June 30, 2023. 

• Gross profit of $4.9 million for the third quarter of 2023, an increase of 157%, from $1.9 million for the same quarter last year. 

• Gross profit margin of 27% for the third quarter of 2023, an improvement from 12% for the same period last year. 

• Cash operating expenses of $4.6 million for the third quarter of 2023, a reduction of $852,000 from the same period the previous year. The Company is on pace to achieve it’s target operating expense reductions of $3 - $4 million annualized in 2023.  

• Loss from operations of $(4.5) million for the third quarter of 2023 versus a loss from operations of $(6.2) million for the same quarter last year. 

• Adjusted EBITDA of $1.0 million for the third quarter of 2023 versus an adjusted EBITDA (loss) of $(1.7) million for the same quarter last year. 

Financial Highlights for the nine-month period ending September 30, 2023

• Net revenue of $53.6 million for the first nine months of 2023, in increase of 17%, compared to $45.7 million for the same period last year. 

• Gross profit of $14.4 million for the first nine months of 2023, versus $9.5 million for the same period last year. 

• Gross profit margin of 27% for the first nine months of 2023, an improvement from 21% for the same period last year. 

• Cash operating expenses of $14.7 million for the first nine months of 2023, a reduction of $1 million from the same period last year.  

• Loss from operations of $9.2 million for the first nine months of 2023 versus a loss from operations of $12.6 million for the same period last year.  

• Adjusted EBITDA of $1.9 million for the first nine months of 2023 versus an adjusted EBITDA (loss) of $(3.8) million for the same period last year. 

• Cash flows from operations of $2.7 million for the first nine months of 2023. 

• Repayment of $1.97 million of Borrowings for the first nine months of 2023, resulting in annual interest payment savings of approximately $100,000. 

“Our team delivered a record third quarter with higher revenues sequentially, and year over year, and with better margins driven by the execution of our strategic plan,” said John Arbuthnot, CEO of Delta 9. “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, while investing in our industry-leading retail brands.”

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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 nine-month period ending September 30, 2023 filed on SEDAR+ on November 14, 2023 and can be found at www.sedarplus.ca.

2023 Third Quarter Results Conference Call

A conference call to discuss the above results is scheduled for November 15, 2023. The conference call will be hosted that day at 11:00 a.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: 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. 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. 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.