WINNIPEG, Manitoba, May 06, 2021 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”) is pleased to provide guidance on select financial results for the first quarter of 2021 based on preliminary results:
The Company anticipates revenue for the three-month period ending March 31, 2021 to be between $12.90 million and $13.25 million compared with;
$11.75 million for the first quarter of 2020.
$14.15 million for the fourth quarter of 2020.
The Company anticipates direct cannabis production cost per gram of $0.60 and total cost per gram of $0.75 for the first quarter 2021, compared with $0.67 and $0.80 respectively for the fourth quarter of 2020.
The Company anticipates total grams of cannabis produced of 2,178,181 for the first quarter of 2021, compared with 2,128,288 grams of cannabis for the fourth quarter 2020.
The Company anticipates reporting total retail transactions processed of 210,138 for the first quarter of 2021, compared with 202,347 for the fourth quarter of 2020.
“Our Q1, 2021 performance demonstrates another quarter of year over year growth,” said John Arbuthnot, Co-founder and CEO of Delta 9. “This quarter we continue to add addition retail stores across central Canada, expand our B2B business into the US market place and find efficiencies to lower our wholesale production cost per gram. In Q1 we have seen a degree of seasonality and relative Canadian cannabis market weakness affecting our business and impacting sequential revenue growth; however, we remain bullish that the remainder of 2021 looks to be a promising year for Delta 9.”
Delta 9 will provide investors with a full breakdown on its progress in these areas as part of its first quarter results which will be released on May 17, 2021, before the market opens. This will be followed by a conference call the same morning, 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 March 31, 2021 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 March 31, 2021 are issued.
2021 First Quarter Results Conference Call
Delta 9 will release the results for the first quarter of 2021 on May 17, 2021 before the market opens. A conference call to discuss the above results is scheduled for May 17, 2021, 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.
May 17, 2021
9:00 am Eastern Time
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For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
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 “DLTNF”. 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 financial results for the quarter ended March 31, 2021. 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 31, 2021 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.