This Post Was Syndicated Under License Via QuoteMedia
WINNIPEG, Manitoba, July 29, 2020 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”) is pleased to provide guidance on select financial results of the Company for the second quarter of 2020 based on preliminary results:
- The Company anticipates revenues for the three-month period ending June 30, 2020 to be between $12.7 million and $13.2 million, compared with:
- $8.9 million for the second quarter of 2019.
- $11.7 million sequentially for the first quarter of 2020.
- Based on preliminary results, the Company anticipates revenues for the six-month period ending June 30, 2020 to be between $24.3 million and $25.1 million, compared to $14.5 million for the same period last year.
- The Company anticipates direct cannabis production cost per gram of $0.96 and total cost per gram of $1.08 for the second quarter 2020, compared with:
- $1.05 and $1.04 respectively for the second quarter of 2019.
- $0.98 and $1.10 respectively for the first quarter of 2020.
- Delta 9 anticipates total grams of cannabis produced of 1,649,347 for the second quarter of 2020, compared with:
- 675,233 grams of cannabis for the second quarter of 2019.
- 1,198,983 grams of cannabis for the first quarter 2020.
- Management believes that continued revenue growth and disciplined cost management initiatives will allow the Company to continue to achieve positive cashflows from operations in fiscal 2020.
“We continue to see strong revenues from our three main business segments,” said John Arbuthnot, CEO of Delta 9. “Throughout the COVID-19 crisis, Delta 9 has stayed focused on its strategy of rolling out new retail stores, increasing our wholesale sell-through rates in our existing wholesale markets as well as securing new supply contracts in Ontario and Newfoundland, and hitting critical milestones on Grow Pod sales.”
Delta 9 will provide investors with a full breakdown on its progress in these areas as part of its second quarter results which will be released on August 14, 2020, after the close of the market. This will be followed by a conference call on Monday, August 17, 2020, the details of which can be found at the end of this release.
The preliminary estimated financial results and other data for the three-month period ended June 30, 2020 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 June 30, 2020 are issued.
2020 Second Quarter Results Conference Call
Delta 9 will release the results for the second quarter of 2020 on August 14, 2020 after the market closes. A conference call to discuss the above results is scheduled for August 17, 2020, 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.
|DATE:||August 17, 2020|
|TIME:||9:00 am Eastern Time|
|Dial in #||1-888-886-7786|
|Replay passcode:||764865 #|
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
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 Information
Certain 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 Delta 9’s estimated financial results for the quarter ended June 30, 2020. 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 the Company’s actual financial results being different from its estimates as well as all risk factors set forth in the annual information form of Delta 9 dated March 19, 2020 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.