DELTA 9 CANNABIS INC. (TSX-V: NINE) is pleased to announce it has come to terms on a $12,000,000 loan and credit facility with a Tier 1 Canadian chartered bank. The name of the Bank is not being released at this time as a non-disclosure agreement is in effect until the signing of a definitive loan agreement.
Under the terms agreed to between Delta 9 and the Bank, there will be four separate loan segments, each of which is allocated for a different purpose, and each with its own terms:
“We are very pleased to have reached agreement on this loan facility,” said Delta 9 CFO Brent Bottomley. “Our Company is aggressively expanding to increase our reach in Canada and abroad, although equity markets for cannabis issuers in general have pulled back from highs reached early in 2018. In order to preserve shareholder value over the long term, it was important to us to find a non-dilutive source of capital to help finance our growth.”
Delta 9 CEO John Arbuthnot says the loan agreement marks a shift in the thinking of chartered banks about the cannabis industry.
“This agreement shows real confidence in our Company’s business operations, but also a shift in attitude toward our entire industry, as we approach the full legalization of recreational cannabis in October,” Arbuthnot says. “More importantly, this debt facility combined with our $23 million prospectus financing which closed last December makes us fully funded for the execution of our business plan in 2019.”
The closing of the definitive loan agreement is subject to final due diligence by the Bank.
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.
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