WINNIPEG, Manitoba, June 1, 2020 (GLOBE NEWSWIRE) – PRESS RELEASE – Delta 9 Cannabis Inc. closed a deal on May 29 to purchase two cannabis retail locations in Alberta, Canada. Delta 9 is a vertically integrated cannabis company based in Winnipeg, Manitoba, and the stores, located in Calgary, Alberta, and Grande Prairie, Alberta, were acquired from Modern Leaf Group Inc. The purchase had been agreed upon Nov. 21, 2019. The purchase was made through Delta 9 Cannabis Store Inc. a wholly owned Delta 9 subsidiary.
"We are pleased to have finalized our transaction with Modern Leaf and look forward to the first Delta 9 Cannabis Stores opening their doors in the province of Alberta in short order," said John Arbuthnot, CEO of Delta 9.
Delta 9 Cannabis Store Inc. purchased the stores for $1.3 million subject to customary adjustments. $1,000,000 of the purchase price was satisfied through the issuance of 1,250,000 common shares in the capital stock of the Delta 9.
Upon the closing of the transaction, Delta 9 and Modern Leaf entered into additional agreements granting a right of first refusal by Modern Leaf in favor of Delta 9 pertaining to the purchase of a retail cannabis store located in Olds, Alberta, and the granting of certain restrictive covenants by Modern Leaf in favor of Delta 9.