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Delta 9 Enters Licensing Agreement with Nanosphere Health Sciences

DELTA 9 CANNABIS INC. (TSXV: NINE) ("Delta 9" or the "Company") is pleased to announce it has signed memorandum of understanding (the "MOU") with Nanosphere Health Sciences Inc. (CSE: NSHS) ("Nanosphere"). The MOU provides that Delta 9 and Nanosphere intend to negotiate and enter into a master agreement (the "Agreement") pursuant to which Nanosphere will grant a master license for Nanosphere's patented technology to Delta 9 for all of Canada. Delta 9 may also sub-license the technology to other licensed producers of cannabis under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR").

Nanosphere is a nano-biotechnology company focused on providing next generation delivery of nutritional elements and medications. The company's patented NanoSphere Delivery System™ platform technology addresses the problems of low bioavailability and excessive dosage amounts of a wide range of bioactive compounds, including cannabinoids.

The NanoSphere Delivery System™ provides more bioavailability in comparison to other methods of delivery by transporting essential ingredients directly to the bloodstream and cells. Nanosphere's cannabis brand, Evolve Formulas, currently has products on sale in over 200 dispensaries across Colorado and has signed licensing agreements to bring products to California and Arizona in the coming months. It also holds the patent for delivery of cannabis via phospholipid nanoparticles, as well as a master patent covering its core technology.

"We are very excited to reach this agreement with Nanosphere," said Delta 9 CEO John Arbuthnot. "We believe Nanosphere has developed on of the world's most advanced delivery system for cannabinoids. We believe this partnership will revolutionize the medical use of cannabis in Canada and around the world, and that it also has important applications in the recreational market."

Nanosphere has developed a delivery system that shrinks active drug ingredients and encapsulates them in phospholipid nanoparticles, allowing the agents, including cannabis, to pass through skin or mucous membrane and go straight into the bloodstream. This process allows for a significant increase in the bioavailability of the drug, and also allows for extremely precise dosage of any drug, including cannabis.  Nanosphere products can be applied as a transdermal viscous gel that absorbs into the skin; as an intranasal product for fast-acting effects; or as an intraoral product which is absorbed through the mucous membrane into the bloodstream.

Robert Sutton, Chairman and CEO of Nanosphere, says the agreement marks a great stride forward for his company. "With this agreement we have a trusted and experienced partner in the only G7 nation that has legalized cannabis for both medical and recreational use," Sutton said. "This allows Nanosphere's technology to be subjected to clinical trials and to be appropriately distributed to both patients and to recreational users of cannabis. We hope through our work to eliminate the need for patients to be essentially "smoking their medicine", and to give physicians a new and important tool to treat conditions that respond to cannabinoids."

The MOU provides that Delta 9 and Nanosphere will each receive 50 per cent of the net revenue from sales of Nanosphere products in Canada if the Agreement is entered into. Delta 9 will have the right to sub-contract distribution to third-party license holders in Canada where the opportunity exists. Under those circumstances, Delta 9 would receive a portion of that sub-licensee's net profit, and remit 50 per cent of the net revenue to Nanosphere.

The initial term of the Agreement is intended to be 36 months following the date of the first commercial sale of licensed products pursuant to the Agreement. The Agreement is intended to be renewed by mutual agreement of the parties. Also, if the Agreement is entered into, Delta 9 is bound to apply to Health Canada for authorization to distribute Nanosphere products.  The parties intend that the MOU will be replaced by the Agreement within 60 days, upon completion of due diligence by both parties.