Delta 9 plans to open new retail stores

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This article was published 21/12/2020 (1467 days ago), so information in it may no longer be current.

Delta 9 Cannabis has another $5.7 million in its bank account thanks to an oversubscribed equity offering that closed on Monday, just in time for the opening of its ninth store and fourth in the city.

The company announced late on Monday afternoon that it will be opening an 1,800-square-foot store at the busy Regent Avenue and Lagimodiere Boulevard retail hub.

In addition to four stores in the city, it also has stores in Brandon and Thompson, one store in Saskatchewan and it recently inked deals on two stores in Alberta and another in partnership in Newfoundland and Labrador.

The company plans to open up to 20 Delta 9 retail stores by 2022 and has a long-term vision of opening many more Delta 9-branded retail stores across Canada.

As one of the few Canadian cannabis companies that is producing quarterly profits from operations, it didn’t actually need the funds, but took advantage of market demand. The offering raised more than what was originally intended.

The offering, at 55 cents per share, was at a slight discount to what its shares were trading at when it announced on Nov. 30 and each unit includes a warrant to buy an additional one-half share at 70 cents per share within three years.

The company said net proceeds will be used for working capital and general corporate purposes.

Ian Chadsey, vice-president of corporate affairs, said while the company was not necessarily looking to raise additional funds, there are plenty of opportunities for expansion, especially on the retail front where large provinces including Alberta and Ontario are just now in the process of licensing many new stores.

martin.cash@freepress.mb.ca