Trading began today in shares of Delta 9 Cannabis Inc., one of Canada’s first licensed producers of medical cannabis. The company’s shares are trading on the TSX-V under the stock symbol ‘NINE’.
Share prices rose sharply in the first hours of trading, increasing from $0.65 at the open to $2.00, and were at $1.87 as of noon today (Eastern Time).
Delta 9 was the fourth company in Canada licensed to legally grow and sell cannabis under the original Marijuana for Medical Purposes Regulations. The Winnipeg company is listing on the TSX-V in order to prepare for the upcoming legalization of medical marijuana.
“Closing of the Transaction represents a significant milestone for Delta 9 as we look to aggressively expand our domestic production facilities and international opportunities,” says Delta 9 CEO John Arbuthnot. “Ultimately our goal is to raise between 25 and 30 million dollars in additional capital, through a mix of debt and equity, over the next number of months in order to meet the rising demand for our products.”
This year alone the company has constructed 28 of its self-designed ‘grow pods’, each of which produces an average of 31,500 grams of high quality cannabis annually. The current construction project is intended to build out 600 grow pods in its current 80,000 square foot building in Winnipeg.
Production capacity is expected to increase from the current 1,000 kilograms per year, to 17,000 kilograms of high grade cannabis by 2020.
“What comes with that expansion is more jobs being created in Manitoba, increased production capacity to bring on more registered patients in the short term, and also positioning ourselves for the recreational market following legalization next year,” Arbuthnot says.
As part of the transaction Delta 9 completed a brokered private placement offering of eight million common shares in the capital of the Company at a price of $0.65 per share.
Delta 9’s listing on the exchange occurs as Canada prepares for full legalization of recreational cannabis, which the Liberal government has scheduled for July 1, 2018.
Delta 9 closed a reverse takeover transaction on Oct. 31, 2017 with SVT Capital Corp. (SVT) pursuant to which SVT acquired all of the issued and outstanding shares of Delta 9 Bio-Tech Inc. The resulting issuer, Delta 9 Cannabis Inc., began trading today.