Delta 9 enters into partnership with Westleaf Cannabis Inc. for development of Alberta facility

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Delta 9 Cannabis Inc. (TSXV:NINE) ("Delta 9" or the "Company") is pleased to announce that it has entered into a limited partnership agreement with Westleaf Cannabis Inc. ("Westleaf") and Delta West Inc. for the joint development of a large-scale cannabis production facility located in Southern Alberta (the "Project"). The entering into of a non-binding letter of intent in connection with the Project was previously announced by the Company on January 24, 2018. Delta West Inc. acts as general partner of the limited partnership formed by Delta 9 and Westleaf.

Westleaf Cannabis is a Calgary-based cannabis company, developing a state-of-the-art cannabis production facility in partnership with Delta 9 Cannabis, an already licensed producer under the ACMPR program (CNW Group/Delta 9 Cannabis Inc.)

Delta 9 and Westleaf each own a 50% interest in the Project and will each initially contribute $3 million to the limited partnership, to be used together with debt financing, for initial development of the Project. The Project includes the planned retrofit of an existing building that will be equipped to support indoor cannabis cultivation, research and development, processing, and extraction operations as well as house a fulfillment centre to supply Canadian and global markets.

Certain cannabis genetics product will be provided to the Project by Delta 9. Westleaf Cultivation Management II Inc., a wholly owned subsidiary of Westleaf, will act as manager of the Project. The Project is expected to be operational as early as the third quarter of 2018.

"We said last year we would be focusing heavily on expanding our footprint in the Prairie Provinces, and this partnership with Westleaf to build an Alberta facility is our biggest step yet in achieving that goal," said Delta 9 CEO John Arbuthnot. "Westleaf has an excellent team in place, and combined with our experience and proprietary technology, I believe the Delta West facility will add great value for our shareholders as legalization of cannabis proceeds this summer."

Westleaf president and co-founder Scott Hurd says the "Delta West" facility located in Calgary will be a world-class indoor cultivation, R&D, processing, extraction and fulfillment centre which will be capable of growing premium cannabis flower and producing a diversified derivative product offering to supply the Canadian and global markets. 

"Formalizing our partnership with Delta 9 is an important milestone for both our respective companies," said Westleaf President and co-founder Scott Hurd. "This strategic partnership allows us to accelerate our growth plans to become a leader in cannabis in the Canadian Prairie region, with a vertically integrated presence across Alberta, Saskatchewan and Manitoba. Our goal is for the 'Delta West' facility located in Calgary, Alberta to be a world-class indoor cultivation, R&D, processing, extraction and fulfillment centre which will be capable of growing premium cannabis flower and producing a diversified derivative product offering to supply the Canadian and global markets." 

The Delta West Project is expected to be operational as early as the third quarter of 2018.

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