DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) ("Delta 9" or the "Company"), is pleased to announce that, through its new wholly owned subsidiary Delta 9 Logistics Inc., it has entered into a Limited Cannabis Distribution Agreement (the “Distribution Agreement”) with Manitoba Liquor and Lotteries Corporation (“MBLL”) and the Company anticipates becoming one of Manitoba’s first licensed cannabis distributors.

Under the Distribution Agreement, Delta 9 intends to work with authorized cannabis suppliers to provide cross-docking and distribution services, fulfilling delivery of orders to licensed cannabis retailers within the province of Manitoba. The Company’s cross-docking and distribution services will allow out-of-province suppliers to improve logistics efficiencies and reduce shipping costs into the Manitoba market and will provide Delta 9 with additional diversified revenue streams.

“We see Delta 9’s entry into the distribution services space to be the logical next step in the Company’s vertical integration strategy,” said John Arbuthnot, CEO of Delta 9.

“Delta 9’s existing relationships with the Canadian cannabis industry’s leading suppliers and centralized warehouse presence in Winnipeg make us the ideal provider of these market services.”

Retail cannabis sales in Manitoba for the twelve months ending September 30, 2021 exceeded $138 Million, according to data from Statistics Canada, with more than 125 licensed retail stores in operation as of December 31, 2021. The Company intends to begin executing distribution agreements with suppliers immediately and anticipates distribution shipments will begin in Q2, 2022.

The Company’s planned launch of distribution services in Manitoba is subject to the receipt of a Distribution License (the “License”) from the Liquor Gaming and Cannabis Authority (“LGCA”).