Delta 9 Announces $4 Million Bought Short Form Prospectus Offering of Equity Units
Winnipeg, Canada – Delta 9 Cannabis Inc. (“Delta 9” or the “Company”) (TSX:DN) (OTCQX: VRNDF) is pleased to announce that is has entered into an agreement with Leede Jones Gable Inc. as the lead underwriter and sole bookrunner (the “Underwriter”), pursuant to which the Underwriter has agreed to purchase, on a bought-deal basis, 7,272,728 units (the “Equity Units”) for gross proceeds to the Company of $4,000,000.40 (the “Offering”) at a price of $0.55 per Equity Unit.
Each Equity Unit will consist of common share of the Company (a “Common Share”) and one half (1/2) of a Common Share purchase warrant (each whole purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.70 (the “Exercise Price”) at any time up to thirty-six (36) months following Closing (as defined below).
The Units will be offered by way of a short form prospectus to be filed in those provinces of Canada other than Quebec as the Underwriter may designate pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
The closing of the Offering is expected to occur on or about the week of December 21, 2020 (the “Closing”) and is subject to the Company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
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 https://invest.delta9.ca/.
For further information, please contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
E-mail: [email protected]