Delta 9 Announces Closing of $5.7 Million Bought Deal Offering of Equity Units

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

WINNIPEG, Manitoba, Dec. 21, 2020 (GLOBE NEWSWIRE) -- Delta 9 Cannabis Inc. (“Delta 9” or the “Company”) (TSX:DN) (OTCQX: VRNDF) is pleased to announce the closing (the “Closing”) of its previously announced bought deal financing of 10,454,546 units of the Company (the “Equity Units”) at a price of $0.55 per Equity Unit (the “Offering Price”) for aggregate gross proceeds of $5,750,000.30 (the “Offering”). The Offering was conducted and led by Leede Jones Gable Inc. (the “Underwriter”). The Offering included 1,363,636 Equity Units sold pursuant to the full exercise of the Underwriter’s over-allotment option.

The net proceeds received by the Company from the Offering will be used for working capital and general corporate purposes.

Each Equity Unit consists of one common share of the Company (a “Common Share”) and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.70 at any time up to 36 months following the date hereof.

Pursuant to the terms of the underwriting agreement between the Company and the Underwriter, the Company paid the Underwriter a cash commission equal to 7.0% of the gross proceeds of the Offering, and issued 731,818 non-transferable warrants (the “Broker Warrants”) of the Company to the Underwriter, with each Broker Warrant exercisable, for a period of 36 months from the date hereof, into one Common Share at an exercise price equal to the Offering Price.

The Offering is subject to the final approval of the Toronto Stock Exchange (the “TSX”). The TSX has conditionally approved the Offering and the listing of the Common Shares forming part of the Equity Units and the Common Shares issuable upon exercise of the Warrants and Broker Warrants.

The Equity Units were offered by way of a short form prospectus filed in all of the provinces of Canada except Québec pursuant to National Instrument 44-101 Short Form Prospectus Distributions.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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 "VRNDF". For more information, please visit /.

For further information, please contact:

Investor & Media Contact:

Ian Chadsey VP Corporate Affairs

Mobile: 204-898-7722

E-mail:

Cautionary Note Regarding Forward Looking Information:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which are based upon Delta 9's current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect the final approval of the Offering by the TSX. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Delta 9 to implement its business strategies; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Delta 9 does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Delta 9 to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Delta 9's Annual Information Form dated March 19, 2020 (the "AIF") and other disclosure documents of Delta 9 filed with the applicable Canadian securities regulatory authorities on SEDAR at  The risk factors and other factors noted in the AIF and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.