Delta 9 Cannabis and Fort Garry Brewing Release 'Legal Lager' Beer

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/

WINNIPEG, June 12, 2018 /CNW/ - DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") and the Fort Garry Brewing Company celebrated the Monday night launch of their first jointly developed beer.

Delta 9 Legal Lager is now on sale at MLLC liquor outlets across the province, and is the first beer produced as a collaboration between a brewery and a legal cannabis company. Delta 9 provided the raw hemp material for the beer while Fort Garry Brewing is responsible for production and marketing. Both companies shared the cost of research and development.

Legal Lager is an alcoholized beer infused with material from hemp seeds, and therefore contains no cannabis or any other psychoactive agent produced from the cannabis plant. However, the hemp beer released this week is a first step in an ongoing research and development project to jointly produce a cannabis beer that contains THC.

The two companies are currently developing a co-branded, cannabinoid-infused beer that contains no alcohol. Release of that Phase 2 product would be developed internally as a concept beverage, and would not be sold or made available to the public until it is approved by Health Canada and relevant provincial regulatory bodies.

Under the agreement, Delta 9 will incur the costs and responsibility for marketing and distribution of the Phase 2 cannabis beer, which could not legally be sold in liquor stores.

"Since Delta 9 is one of the companies awarded a retail license from the Province of Manitoba, we are ideally placed for distribution and sale of this type of product," explained Delta 9 CEO John Arbuthnot.

"Legal lager is a hemp based beer, so it's something new we've created," said Fort Garry's head brewer Daniel Geddes. "It's quite unique in the industry and there's not a lot of hemp beers available. We wanted to add a little more complexity to this beer, as well as showcase the hemp itself.

"Frankly as it competes with alcohol or soda pop or other beverages, we've got something that's lighter on alcohol and doesn't give you a hangover; that's a pretty competitive value proposition," Arbuthnot said.

Coverage of the Legal Launch can be seen on CityTV News: https://winnipeg.citynews.ca/video/2018/06/08/hemp-infused-beer-coming-to-canada/

"We see this as a great partnership between two of Manitoba's best-known brands," Arbuthnot added. "Fort Garry Brewing is one of the best craft brewers in Canada and they make my favourite beer, while Delta 9 is truly Manitoba's Own Cannabis Producer.

"This is a Made-in-Manitoba product that's ready for people in our province to enjoy this summer."

About Delta 9 Cannabis Inc.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: (i) Delta 9's expansion plans; (ii) Delta 9's production of cannabis; (iii) approvals for Delta 9's production facilities by Health Canada; (iv) demand for Delta 9's products; and (v) Delta 9's cost to produce its grow pods. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including that Delta 9's currently contemplated expansion and development plans may cease or otherwise change, Delta 9's production of cannabis may be lower than expected, Delta 9 may not obtain the required approvals from Health Canada, demand for Delta 9's products may be lower than anticipated, Delta 9's cost to produce its grow pods may be higher than expected and all other risk factors set forth in the filing statement of Delta 9 dated October 25, 2017 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

SOURCE Delta 9 Cannabis Inc.