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.
