Counsel to Delta 9 on Retail Acquisition, Institutional Financing and Private Placement

Winnipeg-based Delta 9 Cannabis Inc. has closed a deal to become one of the largest cannabis retailers in the country by acquiring 17 cannabis retail outlets in Alberta. Simultaneously, Delta 9 completed an omnibus institutional refinancing and private placement to fund the retail acquisition and future business operations.

On March 31, 2022, Delta 9 announced the closing of its deal to acquire 17 cannabis stores in Alberta from Uncle Sam’s Cannabis Ltd. The newly acquired stores operate under the Uncle Sam’s and Discounted Cannabis brands.

Along with Delta 9’s existing retail outlets, the 17 stores acquired in this deal will make Delta 9 a leading retailer of cannabis products in Canada, according to a release.

“We are pleased to have finalized this transaction to grow our market share in the Canadian retail cannabis market with an additional 17-store presence,” Delta 9 CEO John Arbuthnot said in a statement. “Delta 9 now has 34 retail cannabis stores in operation across Canada and is positioning as one of the country’s largest vertically integrated cannabis retailers.”

To provide funding for this acquisition, ongoing business needs and future potential acquisition opportunities, Delta 9 announced it has completed a previously announced omnibus refinancing with Connect First Credit Union Ltd., and a private placement in secured convertible debentures by Sundial Growers Inc.

In addition to its retail operations, Delta 9 Cannabis also owns Delta 9 Bio-Tech Inc., a licensed producer of medical and recreational cannabis with an 80,000-square-foot production facility in Winnipeg.

MLT Aikins was pleased to act for Delta 9 in this matter and many others, including Delta 9’s listing on the TSX and the development of its retail operations. Learn more about how our Corporate/Commercial group helps many of Canada’s most successful commercial enterprises achieve their growth objectives.