Delta 9 Announces Four Cannabis Retail Locations in Manitoba for 2018

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WINNIPEG, July 3, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce the planned locations for its first cannabis retail stores. Delta 9 intends to open two stores in Winnipeg, one in Brandon and one in Thompson before the end of the year. At least one of the Winnipeg stores is expected to be open on October 17, 2018, which is the date that has been announced as the first day for legal retail sales of cannabis. The Company's online sales portal will also be operating on that date.

Delta 9 CEO John Arbuthnot explained why the Company is opening stores in smaller cities and towns. "We share the provincial government's desire to provide access to recreational cannabis in different regions of the province. As a Manitoba-based company, we are very conscious of the fact we bear an additional responsibility to smaller Manitoba communities. Geographic distribution of cannabis stores is an important factor in moving cannabis sales away from the black market and we in turn have made that one of our key goals for this year."

Delta 9 has not yet released the addresses or exact locations of their upcoming retail outlets, but Arbuthnot says all are located in tier one commercial real estate spaces. All locations are in areas suited to commercial and retail activity, and all are in areas with heavy vehicular and pedestrian traffic. "We're very happy with the locations we've acquired thus far," Arbuthnot says. "I expect all of these sites will perform very well."

Construction has already begun on one location in Winnipeg, where the 3,000 foot space has been gutted to the bare studs in preparation for the design of a Delta 9 "Signature Store". A second location is already close to being ready for retail sales, while the outlets in Thompson and Brandon are still in the design phase. Arbuthnot says the number of stores to be opened in 2019 will depend on the retail allotments issued by the Manitoba government to existing and new retailers.

"We're confident we can build out to the maximum allotment of retail outlets next year, whatever number that may be," Arbuthnot said. "We have the capital set aside, our branding and design elements are in place, and we're excited to start moving into the era of post-prohibition cannabis sales."

Delta 9 currently has one clinic operating in Winnipeg. The clinic is dedicated to helping cannabis patients get a prescription if needed. The clinic will remain open and functioning until patients in Canada have better access to doctors who are educated in cannabis treatment protocols.

The Company is also ramping up production in order to meet its Agreement to supply at least 2.3 million grams to Manitoba Liquor and Lotteries over the first year of operations, and to meet its other commitments across Canada and in Germany.

On Behalf of the Board of Directors
John Arbuthnot, CEO

About Delta 9 Cannabis Inc.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 plans for opening retail stores to sell cannabis. 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 that Delta 9's currently contemplated expansion and development plans may cease or otherwise change, Delta 9's production of cannabis may be lower than expected, Delta 9 may not obtain the required approvals from Health Canada, demand for Delta 9's products may be lower than anticipated, Delta 9's cost to produce its grow pods may be higher than expected and all other risk factors set forth in the annual information form of Delta 9 dated May 31, 2018 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.

SOURCE Delta 9 Cannabis Inc.