Delta 9 acquired by Calgary-based growing company

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This article was published 06/03/2025 (258 days ago), so information in it may no longer be current.

After almost eight months, the receivership of Delta 9 Cannabis has effectively ended with much of its businesses continuing to operate with new owners and few, if any, job losses.

That includes the original Transcona production facility, which has officially been acquired by Calgary-based Simply Solventless Concentrates Ltd., a growing company that produces all sorts of cannabis specialty products but has not, until now, owned its own cannabis cultivation.

Delta 9s Winnipeg production facility — one of the original dozen or so licenced cannabis producers in the country when it started a little more than a decade ago — has been renamed Humble Grow Co.

Murray Brown, the chief operating officer of Simply Solventless Concentrates (SSC), said the new name symbolizes the way the company operates.

“It is a reflection of who we are,” said Brown. “We are not boisterous. We are humble at SSC. We are not about trying to declare what we are going to do. We will let the result show for themselves.”

All 65 staff will retain their positions and Brown said the company is actively recruiting additional talent.

The 98,000 square foot leased facility is currently at full capacity producing approximately 9,000 kilograms of dried cannabis flower per year.

SSC, who other companies make hash, pre-rolled cannabis joints and other extracted speciality products, paid $3 million for what was called Delta 9 Bio-Tech Inc.

Since it acquired the business from the court-appointed receivership process it does not assume any debt. The operation includes $3 million in working capital along with some tax loss carryovers.

It also provides SSC with access to flower cultivation at a time when the supply-demand dynamic is balancing out. For some time there had been an excess of production, causing many producers across the country to shut down some production.

Brown said Humble Grow Co. won’t necessarily become the prime supplier of its other companies.

“Humble Grow Co. will operate as an independent business, but when the synergies with our other businesses are natural we will realize on them,” he said. “But if Humble can sell at a higher price to other markets other than our own companies, we will absolutely do that.”

Brown said that Delta 9 has designed some new technologies that would significantly increase production capacity without adding much input costs, but would require about $4 million in capital investment.

He said company management will consider that option.

John Arbuthnot, the co-founder and former CEO of Delta 9, said the balance of the drawn-out receivership process should be wrapping up this week.

Ontario-based FIKA Cannabis, which sponsored the receivership by funding operations through the eight month process, now owns Delta 9’s former retail chain, which included about 40 locations including about 20 branded Delta 9, mostly in Manitoba and another 20 stores under the Discounted Cannabis, Uncle Sam’s Cannabis and Garden Variety brands in Manitoba, Saskatchewan and Alberta.

Arbuthnot, who continues to consult with FIKA on the transition, said, he’s not sure what will happen with the stores carrying other brand names but, “I can say with confidence that the Delta 9 name is staying in Manitoba.”

He said the stores are running as well as they ever have.

“FIKA has made some substantial investments in increasing inventories and has implemented a full loyalty points program at the stores,” he said. “From a customer perspective you’re probably seeing some of the best customer experience ever at the stores.”

Although Delta 9’s production and retail operations were operating successfully at the time it was forced into receivership after it had breached some of its debt covenants. Calgary-based SNDL Inc. held the debt and took the action so that it could either acquire Delta 9’s assets or be paid out through the court-ordered process.

The latter has occurred leaving Delta 9’s shareholders out in the cold.

martin.cash@freepress.mb.ca