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Delta 9 Receives Expansion Approval from Health Canada for Part of Phase II Facility

Press Release

WINNIPEG, MB – May 20, 2019 – DELTA 9 CANNABIS INC. (TSXV: NINE) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce that it has received Health Canada approval to place 48 new “Grow Pods” from its Phase II expansion into production. As previously disclosed, Delta 9’s proprietary cannabis production methodology is based around a modular, scalable, and stackable production unit called a grow pod (a “Grow Pod”).

The Company is now working to place 36 flowering Grow Pods and 12 support Grow Pods into production, which will bring the total number of Grow Pods approved by Health Canada and in production to 202. The Company anticipates that this expansion will add an additional 1,150 kilograms per year of dried cannabis flower production, bringing the overall anticipated production capacity for the Company’s facilities to 5,350 kilograms per year.

“This is the next step for Delta 9 in terms of Health Canada expansion approvals for our Phase II expansion. We feel the Grow Pod style of production allows us to scale and license our operations relatively quickly versus our competition,” said John Arbuthnot, CEO of Delta 9, “Additional supply capacity will allow us to pursue additional distribution agreements and secure our place in the Canadian cannabis market.”

The Company continues to install additional Grow Pods within the Phase II expansion areas of its Winnipeg facility. Delta 9’s Phase II plan contemplates expansion of its Winnipeg facilities to up to 608 Grow Pods, producing approximately 16,500 kilograms of cannabis per year.

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