WINNIPEG, MB – TheNewswire - July 12, 2024 – DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”) announces today that is has received a letter (the “Demand Letter”) from SNDL Inc. (“SNDL”) demanding repayment of: (i) the credit facilities that were purchased by SNDL from Connect First Credit Union Ltd. on July 5, 2024 (the “Credit Facilities”), as previously announced by Delta 9 on July 8, 2024; and (ii) its 10% senior secured second-lien convertible debenture in the principal amount of $10,000,000 (the “Convertible Debenture”), all outstanding interest thereon, and any other costs or amounts recoverable in connection therewith. The amount claimed by SNDL to be owed by Delta 9 under the Credit Facilities is $27,868,283.94 as at July 5, 2024.  

In the Demand Letter, SNDL alleges that Delta 9 is in default of certain obligations under the Credit Facilities and Convertible Debenture and related financing documents. Delta 9 acknowledges that it is in default of certain of its obligations under the Credit Facilities. Delta 9 plans to have discussions in the near future with SNDL to address the Demand Letter.

As previously announced, Delta 9 has established an independent committee of its board to examine various potential strategic transactions for Delta 9. Delta 9 continues to have discussions with various counterparties with respect to potential strategic transactions.

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 a 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 with respect to future negotiations between Delta 9 and SNDL as well as all risk factors set forth in the annual information form of Delta 9 dated March 28, 2024, 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.