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Delta 9 announced normal course issuer bid for common shares and convertible debentures

Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: VRNDF) announced the Toronto Stock Exchange (“TSX”) has approved the company’s normal course issuer bid (the “NCIB”) on Oct. 20.

Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: VRNDF) announced the Toronto Stock Exchange (“TSX”) has approved the company’s normal course issuer bid (the “NCIB”) on Oct. 20.

Under the NCIB, Delta 9 can purchase: (i) up to an aggregate of 2,802,503 common shares of the company (“Common Shares”), representing 5 per cent of the public float of Common Shares as at October 20 2020; and (ii) up to an aggregate of $1,180,000 principal amount of 8.5 per cent unsecured convertible debentures of the company (“Debentures”), representing 10 per cent of the public float of Debentures as of October 20, 2020.

Purchases of Common Shares and Debentures pursuant to the NCIB may be made through the facilities of the TSX and alternative Canadian trading systems commencing on October 26, 2020 and ending on October 25, 2021, or an earlier date in the event that Delta 9 purchases the maximum number of the Common Shares and Debentures available under the NCIB.

Delta 9 will pay the market price at the time of acquisition for any Common Shares and Debentures purchased through the facilities of the TSX. All Common Shares and Debentures acquired directly by Delta 9 under the NCIB will be cancelled.

As of October 20, 2020: (i) there were 90,203,534 Common Shares and $11,800,000 principal amounts of Debentures issued and outstanding; (ii) 34,152,993 Common Shares and no Debentures were held by the senior officer and directors of the Company; and (iii) the public float of the company was 56,050,054 Common Shares and $11,800,000 principal amounts of Debentures.

The average daily trading volume of the Common Shares and Debentures for the six-month period ended September 30, 2020 was 111,829 Common Shares and 43,000 principal amounts of Debentures. Daily purchases will be limited to 27,957 Common Shares and $1,000 principal amounts of Debentures, other than block purchase exceptions.

Delta 9 sought approval of the NCIB, because it believes that, from time to time, the market price of the Common Shares and Debentures may not fully reflect the value of the Common Shares and Debentures.

Delta 9 believed that, in such circumstances, the purchase of Common Shares and Debentures represented an accretive use of capital.