- Delta 9 has signed an agreement to purchase three Garden Variety branded retail cannabis stores located in Manitoba
- The purchase price of $3,250,000 will be paid in Delta 9 common shares
- The transaction is expected to close on or about August 29
- Delta 9 Cannabis is a vertically integrated cannabis company
- Delta 9 Cannabis Inc. (DN) opened trading at C$0.17
Delta 9 Cannabis (DN) has signed an asset purchase agreement with 10552763 Canada Corp.
Under the agreement, Delta 9 will acquire three Garden Variety branded retail cannabis stores located in Manitoba, two in Winnipeg and one in Brandon.
“We are pleased to announce another strategic retail acquisition to grow our market share across the Canadian prairies,” said John Arbuthnot, CEO of Delta 9.
“On closing of this transaction Delta 9 will operate 38 stores, positioning us as one of Canada’s largest vertically integrated cannabis retailers.”
The purchase price to be paid will be $3,250,000. A portion of the purchase price will be satisfied by issuing common shares of Delta 9 at closing. The balance will be paid by common shares which will remain held in escrow for a period of approximately six months.
The Garden Variety retail cannabis stores have demonstrated significant revenue, EBITDA, and earnings growth over 2020 and 2021. The combination of the Garden Variety cannabis stores and Delta 9’s existing store network will make Delta 9 a leading retailer of cannabis products in Manitoba.
The transaction, expected to close on or about August 29, remains subject to the approval of the TSX.
Delta 9 Cannabis is a 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 and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Delta 9 Cannabis Inc. (DN) opened trading at C$0.17.