Delta 9 (DN) Poised for TSX Graduation

Delta 9 Cannabis Inc. has received conditional approval for an uplisting to the Toronto Stock Exchange.

The graduation is dependent on meeting standard exchange requirements by Nov. 5, 2019, and the Winnipeg-based firm is confident that it can satisfy them. It will soon issue a bulletin detailing the date of its TSX launch, which will see it retain the DN ticker. The symbol changed from NINE to DN last month.

“This eventual listing on the TSX will help to increase trading liquidity, provide access a growing investor base interested in the cannabis industry, and raise capital for further investments,” said chief executive John Arbuthnot.

Delta 9 recently began trading 8.5% unsecured convertible debentures and common share purchase warrants, maturing on Jul. 17, 2022.

The firm also closed an $11.8 million public offering of convertible debentures two weeks ago. The capital raised will go towards capital expenditures at its facility, the launch of new retail stores and general working purposes.

Delta 9 last announced financial results on May 30, when it revealed that operating revenue increased to $5.6 million in Q1 2019. That was its best-ever quarter for revenue, but it made a loss of almost $1 million from operations.

The firm ended up with an $11.1 million profit that quarter after realizing $12.2 million from the sales of 50% interest in the Delta West Limited Partnership to Westleaf Cannabis Inc.

It has since tied up a one-year white label agreement with Westleaf , which will see it obliged to purchase a minimum of $4 million worth of derivatives from Westleaf’s extraction facility. That will include vape pens, edibles, gels and tinctures, which are set to become popular once the market opens up in Canada later this year.

There is the option to increase the agreement to $16 million per year if demand proves high among consumers.

Delta 9 has three stores – two in Winnipeg and one in Brandon – and it also wholesales from its 80,000 sq. ft. production facility.

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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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