WINNIPEG, Manitoba, May 05, 2020 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) is pleased to provide guidance on select financial results for the first quarter of 2020 based on preliminary results:
- The Company anticipates revenues for the three-month period ending March 31, 2020 to be between $11.3 million and $11.9 million compared with;
- $5.6 million for the first quarter of 2019.
- $10.6 million sequentially for the fourth quarter of 2019.
- The Company anticipates direct cannabis production cost per gram of $0.98 and total cost per gram of $1.10 for the first quarter 2020, compared with $0.91 and $1.04 respectively for the fourth quarter of 2019.
- Delta 9 anticipates total grams of cannabis produced of 1,198,983 for the first quarter of 2020, compared with 1,305,806 grams of cannabis for the fourth quarter 2019.
“We are anticipating a continuation of strong year-over-year and sequential results for the first quarter of this year,” said John Arbuthnot, CEO of Delta 9. “As the Canadian cannabis industry has faced challenges with many firms restructuring and downsizing, Delta 9 has stayed focused on its strategy of rolling out new retail stores, increasing our production capacity and sell-through rates into our provincial markets, and hitting critical milestones on projects in our business to business segment.”
Delta 9 will provide investors with a full breakdown on its progress in these areas as part of its first quarter results which will be released on May 14, 2020, after the close of the market. This will be followed by a conference call the next morning, the details of which can be found at the end of this release.
The preliminary estimated financial results and other data for the three-month period ended March 31, 2020 set forth above are subject to the completion of the Company’s financial closing procedures. These preliminary estimated financial results have been prepared by and are the responsibility of the Company’s management. The Company’s independent registered public accounting firm, Baker Tilly HMA LLP, has reviewed these preliminary estimated financial results and other data, but did not audit or express an opinion on them.
The Company currently expects that its final results of operations and other data will be consistent with the estimates set forth above, but such estimates are preliminary and the Company’s actual results of operations and other data could differ materially from these estimates due to the completion of its financial closing procedures, final adjustments and other developments that may arise between now and the time such consolidated financial statements for the period ended March 31, 2020 are issued.
2020 First Quarter Results Conference Call
Delta 9 will release the results for the first quarter of 2020 on May 14, 2020 after the market closes. A conference call to discuss the above results is scheduled for May 15, 2020, pre-market. The conference call will be hosted that day 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.
|DATE:||May 15, 2020|
|TIME:||9:00 am Eastern Time|
|Dial in #||1-888-886-7786|
|Available until 12:00 midnight Eastern Time, August 15, 2020|
|Replay passcode:||634784 #|
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
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 “VRNDF”. 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 Delta 9’s financial results for the quarter ended March 31, 2020. 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 19, 2020 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.