Delta 9 Reports First Quarter 2023 Results
WINNIPEG, Manitoba, May 15, 2023 (GLOBE NEWSWIRE) -- DELTA 9 CANNABIS INC. (TSX: DN) (OTCQB: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month period ending March 31, 2023.
Financial Highlights for Q1, 2023:
- Net revenue of $16.9 million versus $12.5 million for the three-month period ending March 31, 2022, an increase of 35%.
- Gross profit, before changes in the fair value of biological assets, of $4.2 million versus $3.0 million for the three-month period ending March 31, 2022, an increase of 42%.
- Net income (loss) from operations of $(1.2) million versus $(2.9) million for the three-month period ending March 31, 2022.
- Adjusted EBITDA (loss) was $(475,595) versus Adjusted EBITDA loss of $(1.7) million for the three-month period ending March 31, 2022.
- Cash used in operations was $89,530 versus cash used in operations of $2.5 million for the three-month period ending March 31, 2022.
"During the first quarter, we continued to focus on our highest priorities of sustaining and growing our revenues across our core business units while optimizing our vertically integrated business model to achieve positive cash flow from operations in 2023,” said John Arbuthnot, CEO of Delta 9. “We will continue our relentless focus on cost and operational efficiencies and strengthening our balance sheet to deliver sustained, profitable growth for our shareholders. Delta 9 is well positioned to generate $3-4 million in efficiencies from various cost cutting measures announced earlier this year as we pursue our path to profitability.”
Summary of Quarterly Results:
| Consolidated Statement of Net Income (Loss) | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 |
| Revenue | $17,495,078 | $15,693,969 | $17,559,647 | $16,902,378 |
| Cost of Sales | 12,850,777 | 13,772,202 | 14,173,693 | 12,689,181 |
| Gross Profit Before Unrealized Gain From Changes In Biological Assets1 | 4,644,301 | 1,921,767 | 3,385,954 | 4,213,197 |
| Unrealized gain from changes in fair value of biological assets (Net) | (542,188) | 340,602 | (2,710,521) | 2,135,184 |
| Gross Profit | $4,102,113 | $2,262,369 | 675,433 | $6,348,381 |
| Expenses | ||||
| General and Administrative | 4,043,257 | 3,668,708 | 3,551,472 | 3,390,234 |
| Sales and Marketing | 3,381,223 | 3,710,471 | 4,647,409 | 4,003,020 |
| Share Based Compensation | 107,121 | 1,086,858 | 169,540 | 167,603 |
| Total Operating Expenses | $7,531,601 | $8,466,037 | $8,368,421 | $7,560,857 |
| Adjusted EBITDA (Loss) 2 | (391,054) | (1,683,018) | (1,479,845) | (475,595) |
| Income (Loss) from Operations | $(3,429,488) | $(6,203,668) | $(7,692,988) | $(1,212,476) |
| Other Income/ Expenses | (1,402,588) | (1,470,942) | (3,515,430) | (1,930,496) |
| Net Income (Loss) | $(4,832,076) | $(7,674,610) | $(11,208,418) | $(3,142,972) |
| Basic and Diluted Earnings (Loss) Per Share | $(0.04) | $(0.06) | $(0.09) | $(0.02) |
A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the first quarter ended March 31, 2023 filed on SEDAR and can be found at .
Q1 Results 2023 Conference Call
Delta 9 has scheduled a conference call to discuss the results for its first quarter ended March 31, 2023. The conference call will be hosted May 16, 2023 at 10:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period.
| Date | May 16, 2022 | |
| Time | 10:00 a.m. EST | |
| Dial in # | 1-888-886-7786 - Toll free North America | |
| Replay information: | 1-877-674-6060 | |
| Replay Password | 526708# Available until June 16, 2023 |
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail:
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 95,000 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 OTCQB under the symbol “DLTNF”. For more information, please visit .
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, 2023. 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, 2023 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.
