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Delta 9 increases production of pre-rolls, secures funding support from Manitoba Agriculture

(Globe Newswire) Winnipeg — Delta 9 Cannabis Inc. has completed the installation and implementation of its new fully-automated pre-roll manufacturing equipment at the company’s Winnipeg facilities, significantly increasing the company’s capacity to manufacture pre-rolled cannabis products. The company is also pleased to announce that the pre-roll automation project has been funded in partnership with the Canadian Agricultural Partnership AG Action Manitoba program, through a contribution agreement for $175,000, or 25 per cent of the overall project cost.

“The expansion in pre-roll manufacturing capacity marks a significant milestone for Delta 9. In 2022 we produced and sold over 1 million cannabis pre-rolls, generating over $2.3 million in revenue. We anticipate that the new automated pre-roll equipment will allow Delta 9 to produce up to four million pre-rolls per year with significantly lower manufacturing costs and improved contribution margins from the sale of pre-roll products. We want to thank the Government of Manitoba for their partnership in this investment through the AG Action Manitoba program.” — John Arbuthnot, CEO, Delta 9

The company plans to add multiple strain specific and innovative cannabis pre-roll products to its portfolio in 2023 and views the pre-roll segment as a key growth driver for the company’s wholesale cannabis business.

The Canadian Agricultural Partnership is a bilateral agreement between the Government of Canada and the Government of Manitoba which oversees the AG Action Manitoba program. The program funds investments in the Manitoba agriculture sector with a directive to enhance the diversification, competitiveness, and sustainability of the agriculture, agri-food, and agri-product sector by accelerating the pace of innovation in the Province of Manitoba.