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WINNIPEG, March 23, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") has signed a "Strategic Collaboration Agreement" (the "Agreement") with Fort Garry Brewing Company LP ("Fort Garry").

Under the March 21, 2018 agreement Delta 9 and Fort Garry will jointly produce and market a hemp beer in Manitoba, for sales nationally. The beer is expected to be on the market in the summer to mark the expected legalization of recreational cannabis in Canada.

The first product, produced pursuant to the strategic collaboration, will be an alcoholized beer infused with material from hemp seeds, and will contain no cannabis or any other psychoactive agent produced from the cannabis plant.

Fort Garry will be responsible for distribution in any province where the brand is sold. Delta 9 will provide the hemp seed used in production of the new product.

The companies also plan to develop a co-branded, cannabinoid-infused beer that contains no alcohol. Release of that "Phase 2 product" would be developed as a concept beverage, pending regulatory approval from Health Canada and provincial regulatory bodies. Delta 9 will incur the costs associated with marketing and advertising of the Phase 2 product.

Under the terms of the agreement, Delta 9 and Fort Garry will split the research and development costs, while Fort Garry will incur marketing and advertising costs associated with the launch, sale and distribution of the Phase 1 product. Delta 9 will provide hemp and/or cannabis to Fort Garry for use in producing the new beer, and may also contribute funds to marketing and advertising.

"We see this as a great partnership between two iconic brands in Manitoba," said Delta 9 CEO John Arbuthnot. "Fort Garry Brewing is one of the best craft brewers in Canada and is particularly popular in our home province, while Delta 9 is truly Manitoba's Own Cannabis Producer. Combining our joint expertise will allow us to provide some really innovative beverages for customers from coast to coast.

"The fact that this is a Made-in-Manitoba partnership with our favourite brewery is icing on the cake!"

Fort Garry Brewing General Manager Orest Horechko said he and his team are equally excited about the partnership with one of Canada's largest cannabis producers.

"We're very happy that two local companies are getting together to move forward on an amazing project, that will result in a fantastic, 100 per cent made in Manitoba product," Horechko says.

The Agreement is subject to the drafting of a more detailed Definitive Agreement which the parties expect to execute in late April, 2018.

About Delta 9 Cannabis Inc.

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's shares trade on the TSX Venture Exchange under the symbol "NINE".

About Fort Garry Brewing Company LP

Fort Garry Brewing Company is the oldest and largest brewer in Manitoba, with a 25,000 square foot facility located in south Winnipeg.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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: (i) Delta 9's expansion plans; (ii) Delta 9's production of cannabis; (iii) approvals for Delta 9's production facilities by Health Canada; (iv) demand for Delta 9's products; and (v) Delta 9's cost to produce its grow pods. 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 that Delta 9's currently contemplated expansion and development plans may cease or otherwise change, Delta 9's production of cannabis may be lower than expected, Delta 9 may not obtain the required approvals from Health Canada, demand for Delta 9's products may be lower than anticipated, Delta 9's cost to produce its grow pods may be higher than expected and all other risk factors set forth in the filing statement of Delta 9 dated October 25, 2017 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.

SOURCE Delta 9 Cannabis Inc.

For further information: Gary Symons, Director of Communications, [email protected], 250.300.9352