Delta 9 Cannabis

Delta nine Cannabis Inc. is a vertically integrated cannabis company that specializes in the production, distribution, and retail sale of cannabis products across Canada. The company operates an 80,000 square foot production facility in Winnipeg, Manitoba, where it cultivates and manufactures a wide range of cannabis products, including dried flower, oils, edibles, drinkables, vape pens, and concentrates.

Delta nine Cannabis has a unique business model that combines wholesale distribution channels with a rapidly expanding retail network. The company's wholly-owned subsidiary, Delta nine Bio-Tech Inc., is a licensed producer of medical and recreational cannabis. In addition to its own branded products, Delta nine also sells its cannabis grow pods and genetics to other businesses, providing consulting and licensing services.

One of Delta 9's key strengths is its vertically integrated operations, which allow the company to control the entire supply chain from cultivation to retail sales. As of February 2023, Delta nine owned and operated 41 retail stores under the "Delta nine Cannabis Store" brand across Western Canada, with plans for further expansion. The company strategically selects high-traffic and densely populated areas for its retail locations, offering a modern shopping experience and a diverse product selection.

In August 2022, Delta nine acquired three Garden Variety-branded cannabis retail stores in Manitoba for CUSD 3.25 million, strengthening its market position in the province. The company reported annual recurring revenues of approximately CUSD 60 million to CUSD 70 million from its retail operations as of September 2022.

While its retail segment remains profitable, Delta nine faced challenges with its cultivation segment due to price and margin compression in the Canadian cannabis market. In January 2023, the company implemented cost-cutting measures, including a temporary layoff of approximately 40 staff and a reduction in cultivation capacity by about 40%, to achieve positive cash flow from operations.