WINNIPEG, Manitoba, March 19, 2020 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the fourth quarter and full year ending December 31, 2019.
“We are pleased with our record year over year and sequential revenue results,” said John Arbuthnot, CEO. “We have seen a significant increase in sequential quarterly revenue with a strong performance in our retail and business to business segments. We believe that given the relative novelty and uncertainty of the global cannabis industry, that our diversified revenue strategy and vertical integration approaches will allow us to better react to market challenges than our competitors with single business strategies. Most notably the Company achieved its first quarterly profit from operations in the Company’s history in the fourth quarter of 2019.”
¹The Company’s “gross profit” Is calculated before adjustments for changes in biological assets.
²The Company’s “Adjusted EBITDA” is a measure used by management that does not have any standardized meaning prescribed by International Financial Reporting Standards and may not be comparable to similar measures presented by other companies. Management defines the Adjusted EBITDA as the income (loss) from operations, as reported, before interest and tax, adjusted for removing share-based compensation expense, depreciation and amortization, and the fair value effects of accounting for biological assets and inventories. Management believes that Adjusted EBITDA, and the attribution of Adjusted EBITDA in the manner described above, provides meaningful and useful financial information as these measures demonstrate the performance of the Company’s operating businesses.Summary of Quarterly Results:
Adjusted EBITDA is a non-IFRS measure, and is calculated as earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items.
The following chart provides a breakdown of the Company’s revenue by segment:
Discussion of Operations:*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 costsA comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the fourth quarter and year ending December 31, 2019 filed on SEDAR and can be found at www.sedar.com.Q4 Results 2019 Conference CallDelta 9 has scheduled a conference call to discuss the results of the fourth quarter and full year ending December 31, 2019. The conference call will be hosted March 20, 2020 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.For more information contact:Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: [email protected]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 InformationCertain 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 (i) the Company’s expansion plans; and (ii) the Company’s cannabis production. 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 all risk factors set forth in the annual information form of Delta 9 dated April 30, 2019 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.
Bay Street News