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WINNIPEG, Nov. 16, 2017 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce that Health Canada has issued its conditional approval for the next phase of the Company's planned expansion of its Winnipeg, Manitoba production facility. The approval covers an additional 143 of the Company's self-designed "grow pods", each of which management anticipates will produce an average of 31.5 kilograms of medical cannabis per year. The Company plans to build a total of 600 grow pods in its current building by the second quarter of 2020. The indication of approval to proceed with the construction of the grow pods was received from Health Canada yesterday after Health Canada completed its "paper-based review" of the Company's application to amend its production and sales license.

"We are anticipating a dramatic surge in demand for cannabis, so this is an important milestone in our journey to adequately supply the market for recreational cannabis once legalization occurs in July next year," said CEO John Arbuthnot.

Health Canada will continue its review of Delta 9's expansion as the project goes through the construction phase, including ongoing inspections for security, odour control measures, Good Production Practices (GPP), and other requirements under the Access to Cannabis for Medical Purposes Regulations (ACMPR). Full approval will not be granted until construction has been completed and confirmed to be in compliance with all of the regulations and requirements of the ACMPR.

Management of Delta 9 estimates that each grow pod will cost approximately $40,000 to produce and install, and will offer 320 square feet (29.7 square meters) of growing space with 15 lights, producing an average of 31.5 kilograms of cannabis per year, depending on the strain being grown.

"The grow pods allow us to expand our production capacity at a very low capital cost and they also have several other advantages," says Arbuthnot. "If there is a problem with the crop in one grow pod, it doesn't spread to the other crops we're growing. They allow us to compartmentalize risk of crop failure due to pests or disease. We are also finding that the quality and potency of our cannabis products have increased greatly since adopting the new hydroponic grow pods."

Of the 143 grow pods being built, 20 will be reserved as "support pods" for use as cloning and mothering rooms. The remaining 123 grow pods are anticipated by management to produce approximately 3,875 kilograms of dried cannabis per year once they are fully operational.

The Company also wishes to announce that it has launched its new corporate website at www.delta9.ca, including a new section for investors. The Company plans to launch an updated and more sophisticated online portal for sales of medical cannabis within the next few weeks.

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".

Neither 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: John Arbuthnot, CEO, [email protected], (204) 470-8061 or Gary Symons, Director of Communications, [email protected], 250.300.9352