DELTA 9 CANNABIS INC (OTC:DLTNF) announced that through the wholly owned subsidiary Delta 9 Logistics Inc, it aims to expand the cross-docking and distribution business in Manitoba.
MBLL implemented fresh regulatory enhancements to ameliorate lead times for delivery of cannabis shipments from distributors and suppliers to Manitoba-based retailers. Enhancements will enable the firm to bring extra cannabis inventory from third-party suppliers, closer to the retail network and improve lead time.
The inventory doesn’t need to be subject to purchase orders entering the province. MBLL further announced removing the 8-day holding period for retailer orders, enabling purchase orders for immediate shipping.
John Arbuthnot, CEO of Delta 9views the announcements from MBLL in ameliorating supply chain efficiency for retailers and also logistics cost efficiencies for suppliers. The CEO believes that the changes will enable the company to expand its list of cross-docking and augment revenues through new growth. Arbuthnot applauded MBLL as well as the Manitoba government for supporting the cannabis industry including the repeal of the 6% retail social responsibility fee.
The firm is expecting the move to shorten lead times for deliveries to 3 – 5 business days. It is operating in an 11,000 sq ft cannabis warehousing as well as distribution operation and the Liquor Gaming and Cannabis Authority. Delta 9 aims to start implementing expanded distribution agreements and anticipates distribution shipments of locally stored products.
John Arbuthnot said that the distribution, cross-docking, and logistics services enhance strategic relationships with key licensed producer partners across Canada. He further is looking forward to adding efficiency as well as a high level of service to customers in Manitoba.
DELTA 9 CANNABIS INC provided guidance on revenue forecast for the three- and six-month period ending June 30, 2023. The firm is anticipating revenues for the three-month period ending June 30, 2023, in the range of $18.2 million and $18.8 million.
John Arbuthnot, Co-founder, and CEO of Delta 9 said that Delta 9 anticipates a quarter with three business units contributing to success. The CEO added that the firm remains optimistic about the year being a robust one.
Delta 9 will give investors with complete breakdown of financial and revenue results as part of a quarter two news release, which would be issued on August 14, 2023. This would be followed by a conference call the next day.
Delta 9 is expecting final results for revenue would be consistent with the estimates given above. However, the estimates are only preliminary and their actual operation results can differ materially from estimates. It will depend on completing financial closing procedures, adjustments, and developments between now and the time consolidated financial statements are issued.