Manitoba’s Delta 9 strikes deal to raise CA$20M for cannabis cultivation and retail

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.


Delta 9 Cannabis signed a stock-purchase agreement to raise 20 million Canadian dollars ($16 million) to ramp up cultivation and bankroll its bid to become a retailer of recreational marijuana in Manitoba.

The Winnipeg, Manitoba-based medical marijuana producer said in a news release it nailed down the bought-deal agreement with a group of underwriters led by Canaccord Genuity Corp.

Once completed, the transaction will mean Delta 9 has raised CA$30 million this year. The company is traded on the Toronto Stock Exchange under the ticker symbol NINE.

The company submitted a joint application with Canopy Growth to become retail operators in Manitoba.

The bid involves 12 stores in the first year of legalization, half of which would be Delta 9 stores, a company spokesperson told Marijuana Business Daily. Another 12 would be opened in Year Two.

Manitoba has introduced legislation to have private businesses sell recreational marijuana when Canada’s adult-use market is expected to launch next year.

What you need to know:

  • Underwriters agreed to purchase 7.4 million Delta 9 shares at a price of CA$2.70 per share.
  • The offering is expected to close by year-end and has an option for another CA$3 million.
  • Delta 9 is one of only two licensed MMJ producers in Manitoba, the other being privately owned Bonify Medical Cannabis.
  • The company has a national distribution agreement with Canopy Growth.
  • Delta 9 said it supplies more than half of Manitoba’s medical marijuana market.

Matt Lamers can be reached at mattl@mjbizdaily.com