Delta 9 Repays Convertible Debentures, Provides Guidance & Timing For Q2 2022 Results

DELTA 9 CANNABIS INC. DLTNF DN completed the cash repayment of its unsecured 8.5% convertible debentures issued on July 17, 2019, which had a maturity date of July 17, 2022. The $11.8 million cash repayment represents a full payout of the convertible debentures. The convertible debentures were previously traded on the Toronto Stock Exchange under the trading symbol “DN.DB”.

The company met the pre-disbursement conditions required to draw-down $11.8 million under its credit facility with ConnectFirst Credit Union and concurrently made the cash repayment of the convertible debentures. The company's $11.8 million draw-down from its credit facility is subject to a 60-month repayment term at a fixed rate of 4.55% per annum, amortized over 144 months.

DELTA 9 provided guidance on its revenue forecast for the three-month and six-month period ending June 30, 2022, based on preliminary results:

  • The company anticipates revenue for the three-month period ending June 30, 2022, to be between $17.4 million and $18.0 million compared with;

    • $12.5 million for the first quarter of 2022.

    • $16.7 million for the second quarter of 2021.

  • The company anticipates revenue for the six-month period ending June 30, 2022, to be between $29.9 million and $30.5 million.

“Sequentially and year over year, Delta 9 anticipates another record quarter with all three business units contributing to the success of the quarter,” stated John Arbuthnot, co-founder, and CEO of Delta 9. “We remain optimistic that the second half of 2022 will continue to outperform the first half of the year for Delta 9.”

Delta 9 will release results for the second quarter of 2022 on August 15, 2022, after markets close. This will be followed by a conference call the following day on August 16, 2022, at 1:00 p.m. Eastern Time.

Photo by Giorgio Trovato on Unsplash

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