WINNIPEG, Manitoba, May 17, 2021 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month period ending March 31, 2021. Financial Highlights for Q1, 2021: Net revenue of $13.2 million for the three-month period ending March 31, 2021, an increase of 12% from $11.8 million for the same quarter last year. Sequential net revenue decreased by 6% versus $14.1 million for the three-month period ending December 31, 2020. Gross profit of $3.7 million for the three-month period ending March 31, 2021, a decrease of 24% from $4.9 million for the same quarter last year. Sequential gross profit decreased by 16% versus $4.4 million for the three-month period ending December 31, 2020. Net income (loss) from operations of $(3.2) million was lower by $6.1 million from the same period last year. Sequential net income from operations was down 33% versus $(2.4) million for the three-month period ending December 31, 2020. Adjusted EBITDA was $6,199 for the three-month period ending March 31, 2021, versus an Adjusted EBITDA of $1.7 million for the three-month period ending March 31, 2020. Also compares with an adjusted EBITDA of $1.9 million for the three-month period ending December 31, 2020. The Company reported earnings per share of ($0.04) for the three-month period ending March 31, 2021.The Company reported a strong financial position, with working capital of $20.7 million and total assets of $75.0 million. “Delta 9 continues to grow its three main business units by adding addition retail stores across central Canada, adding new micro cultivation partners with strategic cooperation agreements that provide for a variety of services, expanding our B2B business into the US market place and continuing to increase distribution of wholesale cannabis products across our provincial markets,” said John Arbuthnot, CEO. “In the first quarter of 2021 we have seen a degree of seasonality and industry headwinds relating to Covid lockdowns and overall weakness in the Canadian cannabis market affecting our business and impacting sequential revenue growth; however, we remain bullish that the remainder of 2021 looks to be a promising year for Delta 9.” Q1, 2021 and subsequent Operational Highlights: Delta 9 announced the grand opening of three more cannabis retail stores since the beginning of 2021. Delta 9 now has 12 retail stores in total with nine in Manitoba, two in Alberta and one in Saskatchewan. The Company plans to have up to 20 Delta 9 Cannabis retail stores operating this year and has a long-term vision of opening many more Delta 9 branded retail stores across Canada. The corporate retail strategy is to offer the best selection of cannabis products at the lowest prices from the most popular cannabis manufacturers in Canada.Delta 9 completed its final services milestone under agreements with several micro cultivation partners: Dry Island, F1ne Cannabis Cultivation and Fourth Generation Cannabis so far this year. These micro cultivation partners entered into a strategic cooperation agreement with Delta 9 whereby Delta 9 provides services relating to the cannabis production facility design and construction, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, and other services supporting the acquisition of a Health Canada license.Delta 9 is a strategic partner with Oceanic Relief who has been granted a cannabis cultivation license from Health Canada for standard cannabis and processing operations. Delta 9 owns a 5% equity stake in Oceanics’ production facility operations and retail store and has a 20-year supply agreement with Oceanic and the Government of Newfoundland and Labrador.Delta 9 announced it began trading on the OTCQX® Best Market under the new ticker “DLTNF” effective March 16, 2021. The Company changed its symbol from “VRNDF” to align its U.S. trading symbol with its corporate name. Summary of Quarterly Results: Consolidated Statement ofNet Income (Loss)Q2 2020Q3 2020Q4 2020Q1 2021 Revenue$13,013,610$13,130,320$14,149,717$13,227,540 Cost of Sales8,394,2399,168,0269,794,5369,539,620 Gross Profit Before Unrealized Gain From Changes In Biological Assets4,619,3713,962,2944,355,1813,687,920 Unrealized gain from changes in fair value of biological assets (Net)2,460,490(2,338,699)(2,717,281)(736,225) Gross Profit $7,079,861$1,623,595$1,637,900$2,951,695 Expenses General and Administrative3,676,3264,047,0631,600,7783,517,490 Sales and Marketing1,534,8751,753,4612,091,9472,176,965 Share Based Compensation174,779776,705353,798501,370 Total Operating Expenses$5,385,980$6,577,229$4,046,523$6,195,825 Adjusted EBITDA (Loss) 1706,469(474,039)1,912,9316,199 Income (Loss) from Operations$1,693,881$(4,953,634)$(2,408,623)$(3,244,130) Other Income/ Expenses(262,364)(595,547)(747,084)(755,851) Net Income (Loss)$1,431,517$(5,549,181)$(3,155,707)$(3,999,981) Basic and Diluted Earnings (Loss) Per Share$0.01$(0.07)$(0.04)$(0.04) The following chart provides a breakdown of the Company's revenue by segment: Revenue from the Sale of CannabisThree-monthperiod endingMarch 31, 2020 Three-monthperiod endingDecember 31, 2020Three-monthperiod endingMarch 31, 2021 Wholesale Cannabis Revenue$2,991,299$4,444,106$4,317,389 Retail Cannabis Revenue5,854,01710,200,4669,304,916 Medicinal Cannabis Revenue58,02651,85948,890 Revenue from Other categories B2B activities2,977,859633,946186,854 Merchandise and cannabis devices166,334284,110283,233 Other64,466(460,442)57,707 Sub total$12,112,001$15,154,044$14,198,989 (Less) Excise Taxes(358,595)(1,004,327)(971,449) Net Revenue$11,753,406$14,149,717$13,227,540 Key Performance Indicators For the three-month period ending March 31, 2020 For the three-month period ending June 30, 2020 For the three-month period ending September 30, 2020 For the three-month period ending December 31, 2020 For the three-month period ending March 31, 2021 Production/ Wholesale Unit Total Grams Produced1,198,9831,649,3471,908,8752,128,2882,178,181 Direct Production Cost Per Gram*$0.98$0.96$0.74$0.67$0.60 Total Cost Per Gram**$1.10$1.08$0.86$0.80$0.75 Total Grams Released for Sale729,085918,1291,156,0121,417,0961,184,969 Total Grams Sold (Medical and Recreational)591,080396,048961,0521,245,3171,076,755 Avg Selling Price per Gram$4.50$3.77$3.08$3.57$3.16 Retail Unit Total Grams Sold (Retail)692,6611,237,4071,087,5221,490,8252,006,857 Avg Selling Price per Gram$8.45$7.13$7.26$5.81$4.64 Number of Transactions Processed149,440180,358184,750202,347210,138 Avg Transaction Size$45.40$52.79$49.62$50.13$47.79 Unique Website Visitors (delta9.ca)171,218266,831219,389299,546253,254 *Direct Production Cost per gram includes direct labour, nutrients, utilities, growing materials and supplies costs **Total Cost per gram includes Direct Production Cost per gram plus processing labour, packaging, bottling, and labelling costs A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the first quarter ended March 31, 2021 filed on SEDAR and can be found at www.sedar.com.Q1 Results 2021 Conference Call Delta 9 has scheduled a conference call to discuss the results for its first quarter ended March 31, 2021. The conference call will be hosted May 17, 2021 at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period. DateMay 17, 2021Time9:00 a.m. ETDial in #1-888-886-7786 - Toll free North America Replay information:1-877-674-6060Replay Password586812# Available until August 17, 2021For more information contact:Investor & Media Contact:Ian Chadsey VP Corporate AffairsMobile: 204-898-7722E-mail: email@example.com 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 80,000 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 OTCQX under the symbol “DLTNF”. For more information, please visit www.invest.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 Delta 9’s financial results for the quarter ended March 31, 2021. 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 the Company’s actual financial results being different from its estimates as well as all risk factors set forth in the annual information form of Delta 9 dated March 31, 2021 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.