Announcement • Jul 16
FIKA entered into a binding term sheet agreement to acquire Cannabis retail store business and the logistics and distribution business of Delta 9 Cannabis Inc. (TSX:DN). FIKA entered into a binding term sheet agreement to acquire Cannabis retail store business and the logistics and distribution business of Delta 9 Cannabis Inc. (TSX:DN) on July 15, 2024. MLT Aikins LLP acted as legal advisor to Delta 9 Cannabis Inc. Reported Earnings • May 17
First quarter 2024 earnings released: CA$0.02 loss per share (vs CA$0.02 loss in 1Q 2023) First quarter 2024 results: CA$0.02 loss per share (in line with 1Q 2023). Revenue: CA$16.5m (down 2.4% from 1Q 2023). Net loss: CA$5.07m (loss widened 70% from 1Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Pharmaceuticals industry in Germany. Announcement • Apr 20
Delta 9 Cannabis Inc., Annual General Meeting, Jun 28, 2024 Delta 9 Cannabis Inc., Annual General Meeting, Jun 28, 2024. Reported Earnings • Apr 02
Full year 2023 earnings released: CA$0.10 loss per share (vs CA$0.22 loss in FY 2022) Full year 2023 results: CA$0.10 loss per share (improved from CA$0.22 loss in FY 2022). Revenue: CA$71.1m (up 12% from FY 2022). Net loss: CA$17.5m (loss narrowed 36% from FY 2022). Revenue is forecast to grow 10.0% p.a. on average during the next 2 years, compared to a 3.4% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 54% per year, which means it is performing significantly worse than earnings. New Risk • Feb 14
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 50% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Negative equity (-CA$606k). Earnings have declined by 46% per year over the past 5 years. Shareholders have been substantially diluted in the past year (50% increase in shares outstanding). Market cap is less than US$10m (€3.09m market cap, or US$3.31m). Announcement • Oct 31
Delta 9 Cannabis Inc. to Report Q3, 2023 Results on Nov 14, 2023 Delta 9 Cannabis Inc. announced that they will report Q3, 2023 results After-Market on Nov 14, 2023 Reported Earnings • Aug 17
Second quarter 2023 earnings released: CA$0.02 loss per share (vs CA$0.04 loss in 2Q 2022) Second quarter 2023 results: CA$0.02 loss per share (improved from CA$0.04 loss in 2Q 2022). Revenue: CA$18.3m (up 4.3% from 2Q 2022). Net loss: CA$2.82m (loss narrowed 41% from 2Q 2022). Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has fallen by 56% per year, which means it is performing significantly worse than earnings. Announcement • Jul 28
Delta 9 Cannabis Inc. to Report Q2, 2023 Results on Aug 14, 2023 Delta 9 Cannabis Inc. announced that they will report Q2, 2023 results After-Market on Aug 14, 2023 New Risk • Jul 21
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: €151k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$2.7m free cash flow). Shares are highly illiquid. Earnings have declined by 36% per year over the past 5 years. Market cap is less than US$10m (€6.62m market cap, or US$7.36m). Minor Risks Shareholders have been diluted in the past year (41% increase in shares outstanding). Significant insider selling over the past 3 months (€151k sold). Reported Earnings • Nov 17
Third quarter 2022 earnings released: CA$0.06 loss per share (vs CA$0.011 loss in 3Q 2021) Third quarter 2022 results: CA$0.06 loss per share (further deteriorated from CA$0.011 loss in 3Q 2021). Revenue: CA$15.7m (up 3.3% from 3Q 2021). Net loss: CA$7.40m (loss widened CA$6.28m from 3Q 2021). Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Pharmaceuticals industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 37 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Oct 14
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jun 23
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 16
First quarter 2022 earnings released: CA$0.04 loss per share (vs CA$0.042 loss in 1Q 2021) First quarter 2022 results: CA$0.04 loss per share (up from CA$0.042 loss in 1Q 2021). Revenue: CA$12.5m (down 5.7% from 1Q 2021). Net loss: CA$4.17m (loss narrowed 2.8% from 1Q 2021). Over the next year, revenue is forecast to grow 49%, compared to a 6.2% growth forecast for the industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 55 percentage points per year, which is a significant difference in performance. Board Change • May 13
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 04
Full year 2021 earnings released: CA$0.11 loss per share (vs CA$0.072 loss in FY 2020) Full year 2021 results: CA$0.11 loss per share (down from CA$0.072 loss in FY 2020). Revenue: CA$62.3m (up 20% from FY 2020). Net loss: CA$11.2m (loss widened 74% from FY 2020). Over the next year, revenue is forecast to grow 24%, compared to a 8.2% growth forecast for the pharmaceuticals industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 31 percentage points per year, which is a significant difference in performance. Board Change • Apr 04
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Mar 15
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Jan 12
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Dec 05
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Hugh Aird was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • May 28
Co-Founder recently sold €93k worth of stock On the 26th of May, John Arbuthnot sold around 270k shares on-market at roughly €0.35 per share. This was the largest sale by an insider in the last 3 months. John has been a seller over the last 12 months, reducing personal holdings by €121k. Recent Insider Transactions • May 22
Co-Founder recently sold €78k worth of stock On the 18th of May, John Arbuthnot sold around 230k shares on-market at roughly €0.34 per share. This was the largest sale by an insider in the last 3 months. John has been a seller over the last 12 months, reducing personal holdings by €206k. Reported Earnings • May 18
First quarter 2021 earnings released: EPS CA$0.04 (vs CA$0.023 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and weaker control over costs, although revenues improved. First quarter 2021 results: Revenue: CA$13.2m (up 13% from 1Q 2020). Net loss: CA$4.29m (down 309% from profit in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 04
Full year 2020 earnings released: CA$0.072 loss per share (vs CA$0.13 profit in FY 2019) The company reported a mediocre full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: CA$52.0m (up 64% from FY 2019). Net loss: CA$6.42m (down 159% from profit in FY 2019). Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 29
New 90-day low: €0.30 The company is down 17% from its price of €0.37 on 30 October 2020. The German market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €2.16 per share. Recent Insider Transactions • Dec 24
Co-Founder recently bought €62k worth of stock On the 21st of December, John Arbuthnot bought around 176k shares on-market at roughly €0.35 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, John has been a net seller over the last 12 months, reducing personal holdings by €206k. Is New 90 Day High Low • Dec 22
New 90-day low: €0.33 The company is down 7.0% from its price of €0.36 on 22 September 2020. The German market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €2.37 per share. Reported Earnings • Nov 13
Third quarter 2020 earnings released: CA$0.07 loss per share The company reported a mediocre third quarter result with increased losses and weaker control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: CA$13.1m (up 97% from 3Q 2019). Net loss: CA$5.85m (loss widened 307% from 3Q 2019). Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has fallen by 46% per year, which means it is significantly lagging earnings. Announcement • Oct 14
Delta 9 Cannabis Inc. Achieves Milestone in Agreement with Micro Cultivation Partner Delta 9 Cannabis Inc. announced that it has completed its final services milestone under an agreement with Saskatchewan based Micro Cultivation partner, VIGR Life Cannabis Inc. (“VIGR”). As one of Delta 9’s Micro Cultivation partners, VIGR entered into a Strategic Cooperation Agreement (“SCA”) with the company whereby Delta 9 provides services relating to the cannabis production facility design and construction, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, marketing services to develop the VIGR brand and other services supporting the acquisition of the Health Canada license. On October 2, 2020, VIGR confirmed it had reached its final milestone under the SCA and has been granted its cannabis micro cultivation licenses from Health Canada (the “Health Canada License”). VIGR has developed a micro cultivation facility, located in Regina, Saskatchewan. This new facility houses two adjacent micro cultivation licenses, including twenty-four new Grow Pod systems, and a proprietary craft growing approach developed by VIGR. VIGR expects this first facility to be the first step in a more significant growth plan, as it builds Saskatchewan’s leading craft cannabis company. Announcement • Oct 01
Delta 9 Cannabis Inc. to Report Q2, 2019 Results on Aug 27, 2019 Delta 9 Cannabis Inc. announced that they will report Q2, 2019 results at 5:00 PM, Eastern Standard Time on Aug 27, 2019 Announcement • Sep 30
Delta 9 Cannabis Inc. Achieves Milestone in Agreement with Micro Cultivation Partner DELTA 9 CANNABIS INC. announced that it has completed its final services milestone under an agreement with another Micro Cultivation partner, Prairie Trichomes. Prairie Trichomes is an arms length third party in which the company has no ownership control or interest. As one of the company’s Micro Cultivation partners, Prairie Trichomes entered into a Strategic Cooperation Agreement with Delta 9 whereby Delta 9 provides services relating to the cannabis production facility design and construction, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, and other services supporting the acquisition of the Health Canada license. On September 18, 2020, Prairie Trichomes confirmed it had reached its final milestone under the SCA and has been granted a cannabis micro cultivation license from Health Canada (the “Health Canada License”). The company's cannabis production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod", which are retrofitted standard 40-foot shipping containers. Prairie Trichomes’ facility has been designed and built using this turn key and Grow Pod system. Once cultivation begins, Delta 9 plans to purchase premium quality cannabis products from Prairie Trichomes for distribution through the Company's established distribution network, and through Delta 9's branded retail stores. Prairie Trichomes operates a 4th generation farm and has developed a 6,000 square foot micro cultivation facility, located in Carberry, Manitoba. The warehouse is only half utilized with the twelve new grow pods in place which provides room for expansion. The Carritt Family are experienced farmers who are excited to be a part of a new and growing industry. They became interested in growing cannabis to produce a premium cannabis crop year-round and provide additional jobs in rural Manitoba. Announcement • Jul 31
Delta 9 Cannabis Inc. to Report Q2, 2020 Results on Aug 14, 2020 Delta 9 Cannabis Inc. announced that they will report Q2, 2020 results at 5:00 PM, Eastern Standard Time on Aug 14, 2020 Announcement • Jun 16
Delta 9 Cannabis Inc. (TSX:DN) entered into an agreement to acquire a 5% stake in Oceanic Releaf Inc. from Taylor Giovannini. Delta 9 Cannabis Inc. (TSX:DN) entered into a definitive agreement to acquire a 5% stake in Oceanic Releaf Inc. from Taylor Giovannini on June 15, 2020. As part of consideration, Oceanic will be paid by way of the provision of certain consulting and training services to Oceanic over a term of one year pursuant to a strategic cooperation agreement. The transaction is subject to obtaining of all required third party and governmental consents, authorizations and licenses required in connection therewith, including without limitation all required authorizations from Labrador Liquor Corporation. 
