Delta 9 Cannabis Inc. (DLTNF)

[youngmanrunning]

Thanks Willow. All in all could have been much worse. Looking forward to a nice 2020 if we are not gobbled up by one of the bigger boys.

[greenwillow]

Delta 9 Reports Financials for Q3 2019 and Announces Grant of Stock Options

https://www.globenewswire.com/news-release/2019/11/13/1946788/0/en/Delta-9-Reports-Financials-for-Q3-2019-and-Announces-Grant-of-Stock-Options.html


WINNIPEG, Manitoba, Nov. 13, 2019 (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 three-month and nine-month period ending September 30, 2019.

Financial Highlights for Q3, 2019

Operating revenues of $6.7 million for the third quarter of 2019, up 432%, from $1,251,213 for the same quarter last year.
Adjusted EBITDA1 was $(849,760) compared to $(2,551,710) in Q3, 2018.
Gross profit2 of $2.0 million for the third quarter of 2019, up 550%, from $312,480 for the same quarter last year.
Gross profit margin was 31% for Q3, 2019.
Financial Highlights for the nine months of 2019

Record operating revenues of $21.2 million, up 821%, from $2.3 million for the same period last year.
Gross profit2 of $6.8 million, up 799%, from $756,644 for the same period last year.
Gross profit margin was 32% for the nine months of 2019.
“Management would point to the significant year over year increases in net revenue as a positive indication that the Company’s initial quarters of sales in the recreational use cannabis market have been able to contribute significant revenue growth,” said John Arbuthnot, CEO of Delta 9. “Management attributes the decrease in sequential quarterly revenue to a timing issue with revenue in its business to business (B2B) division which was down from the 2nd quarter of 2019.”

The Company’s retail division generated $4.4 million in revenue in the 3rd quarter of 2019 which was up 24% or $840,208 sequentially. The wholesale division generated $2.2 million in revenue for the same period and was down 23% or $684,138.

“Delta 9 will continue to drive sustainable long-term shareholder value by leveraging its strong brand positioning in Western Canadian markets, expanding our various wholesale supply contracts and scaling up our cultivation operations,” said John Arbuthnot, CEO of Delta 9. “We are taking a responsible and compliant approach to growing our business to build an authentic Delta 9 brand as we pursue retail opportunities in the Western Canadian market place.”

1 The 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.
2 The Company’s “gross profit” Is calculated before adjustments for changes in biological assets.

3rd Quarter Operational Highlights

The company entered into a binding letter of intent to acquire two retail stores in Alberta that continues the strategy of establishing a chain of Delta 9 branded retail stores across Canada. Delta 9’s goal is to add an additional 12 retail stores over the next 24 months.
The newest Delta 9 Cannabis Store is the largest cannabis retail store in the Thompson, Manitoba area, offering customers an open and modern shopping décor, highly trained staff and a wide range of products, including dried cannabis flower, cannabis oil and a full assortment of cannabis accessories.
The Company installed and began crop production of cannabis in an additional 48 of its proprietary “Grow Pods”, bringing its total number of Grow Pods in production to 202 within its Winnipeg production facility (the “Delta Facility”).
The additional 48 Grow Pods will increase production by 1,150 kilograms per year of dried cannabis flower production, bringing the Company’s overall anticipated production capacity to 5,350 kilograms of dried cannabis flower per year.
There is another 95 Grow Pods in place and ready for planting once Delta 9 receives approval from Health Canada, which is expected shortly. This will bring the total Grow Pods in production to 297 within the Delta Facility.
The Company is continuing with its planned Phase II expansion of the Delta Facility to increase cannabis production to 16,500 kilograms per year.
After successfully passing all inspections, Delta 9 received a renewal of its cannabis cultivation license for a three-year term after fulfilling Health Canada's rigorous specifications.

[dleduchowski]

DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) is pleased to provide guidance on select third quarter results for the three-month and nine-month period ending September 30, 2019 based on preliminary results:

Delta 9 anticipates revenues for the three-month period ending September 30, 2019 to be between $6.3 million and $6.9 million compared with $1.25 million for the three-month period ending September 30, 2018.
The Company anticipates revenues for the nine-month period ending September 30, 2019 to be between $20.8 million and $21.4 million for the period ending September 30, 2018, compared to $2.3 million for the same period the prior year.
The Company anticipates reporting direct cannabis production cost per gram of $1.08 and total cost per gram of $1.21 for the three-month period ending September 30, 2019, compared with $1.05 and $1.21 respectively for the previous quarter.
Delta 9 anticipates reporting total grams produced of 871,516 for the three-month period ending September 30, 2019, compared with 675,233 grams the previous quarter.
“We are anticipating reporting strong year-over-year results for the third quarter of this year”, said John Arbuthnot, CEO of Delta 9. “As the Canadian cannabis industry has faced headwinds over the summer of this year, we have focused on our continued retail store rollout, increasing our production capacity and sell through rates into our provincial markets, and hitting critical milestones on projects in our business to business segment. We will provide investors with a full breakdown on our progress in these areas as a part of our third quarter results.”

Full third quarter results will be released on November 13, 2019, after the close of the market, followed by a conference call the next morning, details for which can be found at the end of this release.

The preliminary estimated financial results and other data for the quarter ended September 30, 2019 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 September 30, 2019 are issued.

Third Quarter 2019 Results Conference Call

Delta 9 will release the results for its third quarter on November 13, 2019. A conference call to discuss the results for its third quarter is scheduled for November 14, 2019, 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.

[youngmanrunning]

Interesting Link

This is a link to retail sales by province as reported to Stats Canada.

For the second quarter in Manitoba there was roughly $15.3 million in retail sales for Q2, through the first two months of Q3 there has been 11.5. If we stay on the $5.5 million for September that gets us $17 million for the Quarter.

Stats Canada

[youngmanrunning]

Please keep us posted when you see that happening.

[Golden Cross]

Definitely in a downtrend right now young... Have it on radar for when it does show sign of finding a bottom and conformation of a reversal here IMO..GL $VRNDF

[youngmanrunning]

Other than ugly what are your thoughts on the chart.

[Golden Cross]

VRNDF Daily Chart:

[Golden Cross]

News - Delta 9 to Supply Cannabis to Province of British Columbia
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October 03, 2019 19:45 ET | Source: Delta 9 Cannabis
WINNIPEG, Manitoba, Oct. 03, 2019 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) is pleased to announce that the British Columbia Liquor Distribution Branch (the "BCLDB") has provided the Company with authorization to supply non-medical cannabis to the BCLDB for retail sale in the province of British Columbia.

“This marks the fourth major provincial supply contract for Delta 9 after Alberta, Saskatchewan, and Manitoba,” said John Arbuthnot, CEO of Delta 9. “As we ramp up our overall production capacity in 2019 and 2020, we will continue to seek additional distribution contracts for our cannabis products in Eastern markets. This agreement is a major step toward realizing our vision of being a national distributor of cannabis. We are pleased to offer BC retail stores and consumers the opportunity to access Delta 9’s premium branded cannabis products.”

The Company will begin supplying British Columbia with a variety of distinct, adult-use cannabis products under its premium Delta 9 brand name, in the fourth quarter of 2019. Delta 9 is in continued discussions with other provinces, territories and private retail outlets and plans to secure additional cannabis supply agreements over the rest of the year.

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: [phone]
E-mail: [e-mail]

About Delta 9 Cannabis Inc.

Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR 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 OTC under the symbol VRNDF. For more information, please visit delta9.ca.

[youngmanrunning]

Here is some news on two retail outlets that were purchased from Modern leaf.

News

Can someone explain the connection between Westleaf and Modern Leaf?

[Faster Eddie]

Now at 57 cents a share. I’ve officially recognized delta 9 as my highest percentage loser of all time. Bought at 2 dollars and 25 cents and now each share worth 57 cents !!! I just know it’s one hell of a loss. Not great at percentages but I think it’s like 70 % of my money gone. Wow.

[pegcitygreen]

They have tons of inventory ready to go in October for legalization 2.0. Thompson store opening soon (if not already)...haven't been around in a while...super busy lately.

[DBaker111]

Worst part is they need to raise more capital immediately. That’s gonna be tough.

[youngmanrunning]

Thanks Eddie.

[Faster Eddie]

Not filled and be grateful.run run run for the hills. Far far away to a location where a stocks price goes up delta 9!goes down down down down and more down. I bought at 2.25 usd. It’s at 63 cents now. When the debentures were sold it destroyed my investment. Who knows whats next for shareholders that bought open market value? Will it be more high interest paying debentures ? Treasury stock doled out at 10 cents a share to insiders ? I’m not sure how they can sleep at night. Worst performance I’ve ever encountered

[youngmanrunning]

I have a bid of 0.632 USD and no one wants to fill it................

[DropLine]

Honestly... I can care less... there are bigger fish to fry... $CGC, $YOLO, $MJ $THCX to name a few... I'm banking off the lows $$$ trading the bigger names...

I'm a trader... not an investor... in and out like a ghost... what's good today may not necessarily be good tomorrow... that's how I roll...

Cannabis 2.0 on the horizon... billions of dollars flowing into the industry... there will be enough pieces of the pie for everyone... if not well see a ton of M & A... big $$$$ all around... just sayin'...

All IMO...

$VRNDF

[Masshole89]

Looks like D9 may be facing increased competition now. How coincidental that you would bring up that other company. They just received an amendment to their license that allows them to sell directly to provinces now. From what I’ve seen / heard, they’re priced very similarly to D9’s weed.

However, I’ve heard much better reviews for PSF weed. It is much more like higher end strains, and I’m guessing part of why they’re priced more similar to D9 is because of how cheap they can grow it.

I’m sure glad I bought back in over there when branded social media started to pop up and coming soon, and when the BC deal was announced. It looks like it could be a fantastic week over there. What do you think D9 will do this week?

[youngmanrunning]

Time will tell. We are moving in the right direction. Up 20% off the low.

[Masshole89]

This looks familiar

[DropLine]

Sector sentiment has been firming over the past few weeks... many stocks are off recent lows...

Bloodbath in some of the larger names and ETF's however, many mid-tier and smaller players have already started moving on anticipation of Cannabis 2.0... some never participated in the sell off at all (ex $GRWG)...

Companies like $VRNDF are finally getting rewarded for their earnings, not just their name or who's throwing money their way...

We are at the "show me the money" point...

All IMO...

$VRNDF

[pegcitygreen]

Delta 9 has been green pretty consistently lately...hard to do in the current cannabis bloodbath.

[pegcitygreen]

That was great news!! For sure they're going to be getting into shatters, distillates, rosins, waxes and more!! Edibles is just a bonus...its all the other stuff that's gonna sell like crazy. D9 needs to get their own line of vaporizers for waxes and shatters and all this.

[DropLine]

With the recent news developments & Cannabis 2.0 on the horizon... heading back up above $1.00 USD...

ALL IMO...

$VRNDF

[dleduchowski]

Greats news


https://thedeepdive.ca/delta-9-to-bring-kief-to-canadian-marketplace-in-third-quarter/?fbclid=IwAR3es3VoceV24b_cBF5pFc_LE4IP9i0xacgCNxXNRMjldIpyYxSfXb4K8N0

[Faster Eddie]

How much is Auxly paying per gram purchased ? How much is their all in cost per gram produced ? If they’re considering more debt and equity diluting financing then what would be the conditions approximately? When I see these transcripts I wonder why no one asks these hard questions? I need answers !!! At .68 cents I know I’ll never see the 2.25 usd I bought this at but I’d like to limit my loss to 70% of what I spent on delta 9 common stock.

[youngmanrunning]

Thank you for posting this. Could not get to a computer today.

[pegcitygreen]

Delta 9 Receives Approval to List on TSX

WINNIPEG, Aug. 29, 2019 /CNW/ - DELTA 9 CANNABIS INC., a vertically integrated producer and seller of medical and retail use cannabis products (TSXV: DN) (OTCQX: VRNDF) ("Delta 9" or the "Company"), is pleased to announce that its Securities (as defined below) will begin trading on the Toronto Stock Exchange ("TSX") as of the opening of the market on September 3, 2019.

"With the increased visibility that trading on the TSX provides to the retail and institutional investor base, the up listing will help to increase trading liquidity and access a growing investor base interested in the cannabis industry," said John Arbuthnot, founder and Chief Executive Officer of the Company.

Upon listing on the TSX, the Securities will continue to trade under the symbols "DN" for the common shares, "DN.WT." for the common share purchase warrants expiring June 28, 2020, "DN.WT.A." for the common share purchase warrants expiring July 17, 2022, and "DN.DB" for the 8.5% unsecured convertible debentures of the Company (collectively, the "Securities"). In conjunction with the listing on the TSX, the Securities will be voluntarily delisted from the TSX Venture Exchange prior to the commencement of trading on September 3, 2019.

[pegcitygreen]

The current sp is not good...but d9 is still expanding. This is not a sprint...its a marathon. I'm holding this long....really long.

Greed and fear

[Faster Eddie]

Stock market value down 50 % last 6 months!!! Plus a solid ceiling in this stock that it will never get above because of those extremely high interest debentures that were issued. The pumpers then dumpers on here should be ashamed of themselves. Don’t they realize people that invested in Delta 9 stock are hard working employees themselves and had to scrimp and save to invest with the desire for a better future for their families ? It’s a shame what I’ve seen here and with Delta 9. Only insiders taking huge profits.

[Masshole89]

Wow! Who could have predicted all those gains would be given back so quickly!

[Masshole89]

Yes, yes. I told you at > $1.00 that they would pump on the way down to ease the pain for you bagholders. Will be a typical pop and fade. I’ve apparently been frustrating for some the past 3 months though, so feel free to enjoy your temporary joy. Weird, I would still be upset being down > 35% but that’s just me.

I’m glad you made money on that other stock (if you did ). I made money on it too! I could have sold it earlier and made more, but what can you do? It’s kind of like how D9 shareholders could have sold at any point in the past 3 months and been better off. I can still make money buying that other one in the future, but the only way I see to predictably make money on D9 is to short it.

The difference between D9 and that other company is that I see a much more explosive future for the other stock. Did you know as an LP they’ve got an EPS of $0.20 already? It’s wild - some people are actually MAKING MONEY in MJ. They’re definitely staying on my watch list. Even with conservative forward revs and trading at a reasonable EPS ratio (for blue chip stocks mind you - not even the crazy ratios most companies in the MJ sector have) the stock should be trading at around $17-18!

A lot of the big bloated companies will survive the reality coming to the sector - too much money at stake. Some, like the other one you mentioned, are still waiting for a proper valuation. Most of the small, cash burning ones like D9 will end up bankrupt.

[DropLine]

Delta 9 Cannabis scores record revenue ahead of TSX listing... Delta 9 recorded record Q2 revenues of $8.9 million, up 1,142% from last year.

Ummmmmmmmmm... ya mASShole... enough said...

P.S.... my $VF% short position I covered was a frickin' sweet trade!... my trading account thanks you for drawing me over to that msg board when you did...
...

$VRNDF

[youngmanrunning]

Thank you for sharing!

[dleduchowski]

BNN article


Delta 9 Cannabis Scores Record Q2 Revenue ahead of TSX listing



https://www.bnnbloomberg.ca/delta-9-cannabis-scores-record-q2-revenue-ahead-of-tsx-listing-1.1307550

[youngmanrunning]

I noticed that the sale price per ounce was down, but also the cost to produce per ounce was down too. People are saying that companies will need to get production costs to $1.00 per ounce and NINE is right around that number.

[pegcitygreen]

298 pods running...cant remember how many more pods will be in phase 2...but phase 3 will hold another 300 pods. Cha-ching!

[youngmanrunning]

News is out. Not too shabby.

NEWS

[Faster Eddie]

I hope is not an investment practice that will earn you income or capital gains. Don’t be an idiot. Now trading at 60 cents usd. Chart is down down down down down down and more down. Now if you work there and get options or warrants at ten cents or so then ok. If you’re not top 2 or 3 management ( probably owners ) forget about this one. You’ll never do well. I’ve seen this same situation 100 times with family owned businesses. All the money stays at the top. There is no trickle down.

[youngmanrunning]

Earnings released after the close. Let's hope their pre-numbers are true to form and have some other news to drive this north.

[Masshole89]

Perhaps posts with “zero credibility” and “drivel” should be listened to with open ears

[pegcitygreen]

I invested in this stock because for me, its tangible, I can see it, touch it, smell it...I can drive by and see the progress being made on the land, see the pods piling up in the yard. The engineer i usually talk to said he was bumbed about the current share price, but added that he maxed out his stock options...so if the employees have that much faith, I can too.


I apologize for the horrible grammar and broken English...typing on my phone is a pain

[pegcitygreen]

I invested in this stock because for me, its tangible, I can see it, touch it, smell it...I can drive by and see the progress being made on the land, see the pods piling up in the yard. The engineer i usually talk to said he was bumbed about the current share price, but added that he maxed out his stock options...so if the employees have that much faith, I can too.

[DropLine]

So true... it's happening across the board... Cannabis 2.0 opens the flood gates this October... this is the next catalyst which has already started to move weed stocks across the board... also... just bought back in across the board... including $VRNDF... No doubt... edibles will be huge... big money is accumulation now... buy low sell high...

On another note... I wish people did more research and actually had a clue before posting crap.... Just sayin'...

$VRNDF

[DropLine]

His post count speaks volumes... ZERO CREDIBILITY!... spewing drivel...

$VRNDF

[pegcitygreen]

D9 is already stockpiling edibles, topicals and other products for the October 2019 legalization of those items

[pegcitygreen]

I deliver to D9 all the time...


I've seen the fabrication shop that makes their pods...




I've seen inside phase 2...



Video:
update
1/2
2/2

[DropLine]

The bottom is in... you're late to the party...

Cannabis 2.0 coming to a town near you...

All IMO...

Long $VRNDF

[Faster Eddie]

Could be enrichment scheme. A lot of family controlled corporations issue stock to insiders who sell at a 10 bagger then it’s pumped to retail investors like yourself to get your money and then that’s it. You got nothing coming you’re just holding a worthless piece of paper because you have no control. Insiders can make huge stock and options profits. They can unless delisted and that ain’t happening. Too many people making way too much money off this puppy for that to occur. Average person looking to invest let delta 9 stock chart be your guide. Down down down down and down A chart is a fact. It’s not a I think I hope I believe. Delta 9 big big big big loser for retail investor. Those extremely high interest paying debentures recently issued put a solid ceiling in too. Forget about it.

[Faster Eddie]

A nightmare is the only way to describe my investment in Delta 9. Bought at 2.25 usd each share. Now I saw even more potential dilution through debentures although this probably won’t occur since investors just wanted the extremely high interest being paid with conversion as a kicker so I guess that means I’ll never get my capital back. Delta 9 is currently 65 cents a share. Can anyone even briefly describe to me if there is any shareholder value at all since minority shareholders have no rights ?I’ve invested for close to 40 years and seen some cruddy operations where mgmt purpose was to enrich themselves only. Please give a good reason to invest in this outfits stock based on this stocks performance. Thank you.