WINNIPEG, Jan. 24, 2019 /CNW/ - DELTA 9 CANNABIS INC.
(TSXV: NINE) ("Delta 9" or the "Company") is pleased to
announce it has signed a Master License Agreement (the "Agreement")
with NanoSphere Health Sciences, LLC ("NSHS") and its Canadian
subsidiary, NanoSphere Cannabis International Inc. ("NCI", and
collectively with NSHS, "NanoSphere").
The Agreement provides Delta 9 with an exclusive license in
Canada to manufacture and sell
products made with Nanosphere's patented technology for the
delivery of cannabinoids via nanoparticle technology (the
"NanoSphere Delivery System of Cannabis"). The two companies are
already working on the first product for Canada; an intraoral cannabis oil containing
cannabinoid nanoparticles, that is being produced over the next
month for an upcoming inspection for final approval by Health
Canada.
"The Agreement paves the way for an entirely new form of
consumption for both medical and recreational consumers of
cannabis," said Delta 9, CEO John
Arbuthnot.
"On the recreational side, we can now provide a healthier
alternative to smoking or vaping cannabis, but that still gives you
the same or better effect," said Arbuthnot. "Equally important, our
NanoSphere products provide for the first time a truly appropriate
way to deliver medical cannabis, with precise dosage, better
bio-availability, and without essentially having to 'smoke your
medicine'."
The NanoSphere Delivery System of Cannabis works by
nano-encapsulating active ingredients in phospholipid membranes for
transportation through the skin and mucosa into the bloodstream
within minutes. Cannabis applications of the technology include
transdermal viscous gels, intranasal products and intraoral
products, all of which provide rapid results, precise dosages and
high bioavailability. The NanoSphere Delivery System of Cannabis
can eliminate the need for inhalation or ingestion of cannabis,
offering users a potentially safer and more effective method of
consumption.
"This partnership with Delta 9
marks a critical inflection point in NanoSphere's
development, allowing our entry into the world's most developed
cannabis market," said NCI President Gary
Symons. "I have worked personally with Delta 9 for many
years, so I know the extremely high quality of their production,
and we are obviously very excited to now be working together on
Canada's first NanoSphere
product."
Under the Agreement, Delta 9 will pay to NanoSphere a Licensing
Fee of $500,000 Cdn. while NanoSphere
will equip the production lab and train Delta 9 staff in the
production of the NanoSphere Delivery System of Cannabis product
line. Delta 9 and NanoSphere will each receive 50 percent of the
gross profit from the sale of NanoSphere technology-based products.
The initial term of the Agreement is 36 months following the date
Health Canada approves the licensed products for sale.
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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) Health Canada approvals for Nanosphere's products; (ii) the
development of Nanosphere's products; and (iii) sublicensing of
Nanosphere's products by Delta 9. 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 current product development
plans may change, the required approvals from Health Canada for
Nanosphere's products may not be obtained and all risk factors set
forth in the annual information form of Delta 9 dated May 31,
2018 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.
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SOURCE Delta 9 Cannabis Inc.
