Search results will open in a new window on TMXMoney.com.

Exchange Bulletin

Delta 9 Cannabis Inc. (DN, DN.WT, DN.WT.A, ) To Trade On Toronto Stock Exchange


August 29, 2019

Issuer: Delta 9 Cannabis Inc. (the "Company")

Security:

Symbol

Issued and Outstanding Securities

Reserved Securities

Trading Currency

Common Shares

DN

87,863,478

35,188,397

CDN$

Common Share Purchase Warrants

("2017 Warrants")

DN.WT

8,521,500

0

CDN$

Common Share Purchase Warrants

("2019 Warrants")

DN.WT.A

9,746,800

0

CDN$

8.5% Unsecured Convertible Debentures ("Debentures")

DN.DB

$11,800,000 principal amount

0

CDN$

Listing category:

Industrial, Non-Exempt

Trading currency:

CDN$

Listing and posted for trading date:

September 3, 2019 (at the opening)

Other market(s):

The Common Shares have been listed on TSX Venture Exchange (the "TSXV") since November 6, 2017 formerly under the symbol "NINE" and since July 24, 2019, under the symbol "DN". The 2017 Warrants have been listed on the TSXV since January 17, 2018 formerly under the symbol "NINE.WT" and since July 24, 2019 under the symbol "DN.WT". The 2019 Warrants and Debentures have been listed on the TSXV since July 24, 2019, under the symbols "DN.WT.A" and "DN.DB" respectively. The aforementioned securities will be delisted from TSX Venture Exchange on September 3, 2019, upon commencement of trading on the Toronto Stock Exchange ("TSX").

Temporary market maker:

Citadel Securities Canada ULC

Security ownership registration:

Non-certificated inventory system administered by CDS for the Common Shares, 2017 Warrants, 2019 Warrants, and Debentures.

Investor relations:

Ian Chadsey

Vice President, Corporate Affairs

204-898-7722

Email: ian.chadsey@delta9.ca

- or -

John William Arbuthnot IV

Chief Executive Officer

204-997-5328

Email: john.arbuthnot@delta9.ca

Incorporation:

Business Corporations Act (British Columbia)

Fiscal year end:

December 31

Nature of business:

The Company is a vertically integrated cannabis company, with operations in cannabis cultivation, processing, extraction, wholesale distribution, retail, and business to business activities.

Transfer agent and registrar:

Computershare Trust Company of Canada ("Computershare") at its principal offices in Vancouver for the Common Shares, 2017 Warrants, 2019 Warrants, and Debentures.

Dividends:

The Company does not anticipate paying cash dividends on the Common Shares in the foreseeable future.

Sponsorship:

Waived.

Principal Terms of the 2017 Warrants

Symbol:

DN.WT

Exercise price:

$3.25 per Common Share

Expiry:

June 28, 2020 at 4:00 p.m. (Vancouver time)

Additional Information:

Warrant indenture dated December 28, 2017 between the Company and Computershare.

Principal Terms of the 2019 Warrants

Symbol:

DN.WT.A

Exercise price:

$1.33 per common share

Expiry:

July 17, 2022 at 5:00 p.m. (EST)

Additional Information

Warrant indenture dated July 17, 2019 between the Company and Computershare.

Principal Terms of the Debentures

Symbol:

DN.DB

Trading rules:

The Debentures will be quoted and traded on an accrued interest basis, i.e. all bids, offers and trades of the Debentures will reflect only the capital portion of the Debentures and will not reflect accrued interest. Accrued interest must be reflected in the seller's and buyer's settlement amount, and must be reflected on the confirmation with clients.

The Debentures, which are issuable in the minimum principal amount of $1,000 each, will be quoted based on $100 principal amounts with all trades being made in multiples of $1,000. The minimum trading unit of Debentures is $1,000 and a board lot of Debentures is $1,000.

Maturity date:

July 17, 2022

Interest rate:

8.5% per annum. Interest will be computed on the basis of a 360-day year.

Interest payment dates:

Semi-annual in arrears on June 30 and December 31 in each year.

Initial interest payment date:

December 31, 2019.

Initial interest payment amount:

$38.72 for each $1,000 principal amount, which will include interest accrued from July 17, 2019 to, but excluding, December 31, 2019.

Conversion:

The Debentures will be convertible into Common Shares at the option of the holder at any time prior to the earlier of: (i) the close of business (Central time) on the Maturity Date; or (ii) if called for redemption, the business day immediately preceding the date specified by the Company for redemption of the Debentures upon a Change of Control, at a conversion price of $1.21 per Common Share, being a conversion rate of approximately 826 Common Shares per $1,000 principal amount of Debentures.

Additional Information

Trust indenture dated July 17, 2019 between the Company and Computershare.

TSX contact:

Chris Birkett, Director, Toronto Stock Exchange.