Good morning, ladies and gentlemen, and welcome to the Delta 9 Q4 and year-end 2023 conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Monday, April 1st, 2024. I would now like to turn the conference over to Alexa Goertzen. Please go ahead. Good morning, everyone, and welcome to the Delta 9 Cannabis Q4 and year-end 2023 earnings call. At this time, all participants have been placed in listen-only mode. Following the presentation, we will open the line for a question-and-answer session for financial analysts. Delta 9 would like to remind listeners that today's call may contain forward-looking statements that reflect the company's current views with respect to future events. Any such statements are subject to risks and uncertainties, which could cause results to differ materially from those projected in the forward-looking statements. For more information regarding risks and forward-looking statements, please refer to the Delta 9 Cannabis, Inc. public filings, which are available on SEDAR. I would now like to turn the call over to Delta 9's Chief Executive Officer, John Arbuthnot. Please go ahead. Thank you, Alexa, and good morning, everyone. Thank you for taking the time to join us for Delta 9's Q4 and year-end 2023 earnings call. With me this morning is the company's Chief Financial Officer, Jim Lawson, and our VP of Corporate Affairs, Ian Chadsey. Our year-end press release, year-end 2023 financial statements, and Management Discussion and Analysis have now been made available on SEDAR and our company website. With that, let's begin. Over the past year, the Canadian cannabis industry has continued to deal with challenges relating to an oversupply of cannabis products, compressed cannabis wholesale margins, inefficiencies at provincial crown distributors, oversaturation in the number of operating retail stores, and capital markets volatility. In January 2023, Delta 9's management reacted to these difficult market conditions with a suite of strategic initiatives aimed at improving margins and cutting costs to drive profitability and operating cash flows through the balance of 2023. We've now seen four consecutive quarters of material improvements in business conditions for Delta 9 and the Canadian cannabis space. Wholesale prices appear to be stabilizing as the overall industry supply-demand imbalance begins to right itself. Margin stability in both our wholesale and retail business is beginning to show signs of strength, and recent investor sentiment is showing signs of improvement. In the past year, Canadian cannabis industry sales have continued to expand, posting monthly retail cannabis sales of CAD 452 million in December last year, up 12.5% from a year earlier. Annualized retail cannabis sales now exceed CAD 5.1 billion for the Canadian cannabis market. Even with growth rates in the sector beginning to slow, we anticipate that the Canadian industry will double in terms of retail cannabis revenues by the end of the decade. We continue to see a steady beat of progress in the United States market in terms of material cannabis reforms at the federal level. Recently, the Department of Health and Human Services has ordered a Drug Enforcement Administration review for the rescheduling of cannabis from its current Schedule I designation, which currently classifies cannabis alongside heroin, MDMA, and other substances with a high potential for abuse, addiction, and with no accepted medical use. This rescheduling will result in a Schedule III designation as a drug with moderate to low risk of harms and with accepted medical uses. The importance of this rescheduling, which is expected in the coming months, cannot be overstated. The federal rescheduling of cannabis is seen as a gating item for firms like Delta 9 to participate in the United States cannabis market. In other international markets, Germany and the Netherlands have made progress on federal adult-use legalization initiatives targeting an early 2024 launch. International markets such as Israel, Australia, various markets in the Asia-Pacific region, and various countries in the EU continue to make progress on advancing more progressive medical and recreational use cannabis laws. We continue to believe that the growth rate in the Canadian cannabis market and the global reform of cannabis laws represent a generational market opportunity for companies like Delta 9 to grow and unlock significant value for investors. I'm pleased today to be presenting you with Delta 9's Q4 and year-end 2023 financial and operating results. These results include our fourth quarter of operations reflecting the company's progress on our 2023 cost-cutting and strategic plan. We have many positive takeaways from today's results, which we will highlight, as well as analyzing our misses, the challenges we've encountered, and the changes we are making to continue to drive growth and create shareholder value. We will begin with a discussion of operations and material milestones the company's achieved over the reporting period. On the cannabis cultivation and processing side of the business, we'll begin with an update of activities at our Delta 9 facilities in Winnipeg. The primary purpose of the Delta 9 facility is to cultivate, process, and manufacture high-quality cannabis products. The company's proprietary production methodology is based around a modular, scalable, and stackable production unit that we call a Grow Pod. As of December 31st last year, the company had 297 Grow Pods licensed by Health Canada within our facility. Over the past several quarters, we've operated these assets at or above the design capacity of these facilities, producing in the area of 10,000 kilos of cannabis annually, and have invested in continuous improvement initiatives to optimize the number of harvest rotations per year, average grams per harvest, and overall potency in order to maximize returns from these assets. We note that on January 9th last year, the company announced a number of cost-cutting measures as a part of our 2023 strategic plan with the goal of producing positive cash flows from operations, including reducing the company's production capacity at those facilities by 40% to approximately 6,000 kilos annually and laying off approximately 40 employees. Over 2023, the company was able to achieve between CAD 3 million-CAD 4 million in cost-saving efforts as a part of this plan, reducing our bulk inventories of cannabis material and contributing significant improvements in cash flow generation from operations over that period. We have now, into 2024, reached a point where we are selling more cannabis in our wholesale segment than we can produce. Subsequent to December 31st last year, we have now announced that we have increased our production output to meet this increased demand at prices we expect will support ongoing profitability in our wholesale business. The company has identified three main growth drivers, which we feel will allow us to maximize the profitability of our cultivation and processing assets. Firstly, we are refining our cultivation and processing techniques to maximize THC potency and other quality features of our cannabis products. As cannabis consumers have become more discerning in terms of their purchasing decisions over the last few years, we know the success of our cannabis cultivation business rests on our ability to produce the highest quality cannabis products. We have made strides in the past 12 months in improving average THC potency in our harvested cannabis flower, and we'll continue to push our cultivation teams to pursue excellence in terms of our production outcomes. Second, in January last year, we completed a project to automate our pre-roll manufacturing. Over the past 12 months, pre-roll SKUs have become Delta 9's best-selling products in terms of units sold across numerous provincial markets. However, historically, we have been bottlenecked on our ability to produce these products internally and have often had to source third-party manufacturing. Automating this manufacturing process allows us to realize over CAD 0.75 per gram in incremental contribution margin from our pre-roll product offering and will contribute excess capacity to this important product category. Third, the company has begun a gradual retrofit and upgrade of our older technology lighting systems to new state-of-the-art LED systems, which the company has developed with our international lighting suppliers over the past three years. These lighting upgrades are anticipated to increase the company's cultivation capacity to 20,000 kilos per year from our current capacity of approximately 10,000 kilos. These upgrades are also anticipated to improve overall THC potency and overall cannabis flower quality in line with our first key growth driver. We feel that this increased potency, quality, and capacity will not only increase our average selling prices and contribution margins from cannabis wholesale sales but will also assist in driving cost efficiencies and lower our cost per gram of production. On our portfolio of cannabis products, over the past four quarters, Delta 9 has been narrowing the scope of our cannabis cultivars under production to those that are in the highest demand and those at the higher end of the potency range. We currently produce approximately 12 different genetic strains of cannabis, each with its own unique chemical cannabinoid content, terpene, and flavonoid profile. We continue to maintain more than 100 strains being stored on-site in a seed bank to provide for product optionality into the future. We are continuing with our production pivot towards higher potency cannabis strains, which are in the highest demand with the Canadian cannabis retail consumer. Over the past several years, the company has increased its average THC in its harvested cannabis flower from less than 15% in 2020 to more than 25% as of the end of last year. Over the past 12 months, Delta 9 has launched its new Scoops, Candy Chrome, and I-95 cultivars, which have seen encouraging success alongside our staple Whiteout, Sinaloa Gold, and CBD Skunk Haze cultivars. Our high-potency, limited-time, seasonal, and rotational offerings for various holidays and events throughout the year have become a source of higher margin revenues as retailers and consumers continue to prefer novel THC offerings as a part of their purchasing preferences. We plan on introducing numerous high-THC cultivars over the next 12 months, and our strain selection and genetics development has begun to exclusively target high-THC strains to maximize outcomes as a part of this process. Cannabis pre-rolls have become an increasingly important category in the Canadian cannabis market as consumers have moved to smaller packaging sizes and seek convenience in a pre-rolled setting. The company's pre-rolled products currently account for approximately 15% of our overall offering, with our Bliss and Twist pre-rolls making up two of our top 20 selling products in Delta 9 retail stores. The company has increased its presence in the pre-roll category and expanded its SKU lineup to include new potencies, strain-specific pre-rolls, and multi-pack settings, now making up more than 40% of pre-roll products sold in Delta 9 branded stores across the country. As noted, the company has now completed its pre-roll automation project and plans to introduce multiple new pre-roll products and settings in 2024 to increase sales in this important category. In 2023, Delta 9 began to expand its portfolio of consumer-branded cannabis products. Historically, the company's Delta 9 brand has seen success within its own branded retail stores. Moving forward, we believe the growth and success of Delta 9's wholesale cannabis lies in reaching a broader retail and consumer base. In the past year, the introduction of our Busted Nugs milled product and pre-roll line has expanded our distribution in the cannabis flower market. Over the next 12 months, we plan to introduce several new vape products under the company's new Razzle brand, as well as an expanded line of infused pre-rolls, a new infused milled cannabis product, with a goal of seeking a similar segment penetration as we have seen in 2023 with our pre-roll segment. In our retail stores, Delta 9 is carrying the full complement of new 2.0 cannabis products from the industry's leading manufacturers. We believe that through our retail unit, we will be able to extract valuable intel on which of these new product formats are having a positive impact with the consumer and be able to pivot to capitalize on these new product opportunities. From a distribution standpoint, we continue to believe that the domestic market for recreational use cannabis presents a major growth opportunity for the company over the next several years. The company has undertaken a strategy to add new distribution markets incrementally as our increased supply capacity has come online post-legalization and in order to reach our ultimate goal of becoming a nationwide distributor of recreational use cannabis products. At the end of 2024 last year, Delta 9 was licensed for distribution in Manitoba, Saskatchewan, Alberta, British Columbia, Ontario, the Yukon, Newfoundland and Labrador, Northwest Territories, and New Brunswick. Delta 9 also made strides in 2023 in its first international shipments, announcing in February last year that we completed our first shipments to a customer in Australia. Through the balance of the year, the company also received additional export permits from Health Canada for shipments to Australia, and we expect to continue to develop international market opportunities into the future. Expanding on this success in international markets, the company obtained our Good Agricultural and Collection Practices, or GACP, certification for our Winnipeg-based operations, which will expand our international market opportunities for higher margin export sales into the future. On vertical integration and retail cannabis sales, over the past three years, Delta 9 has made significant progress in expanding our retail footprint. We started the year 2020 with only four operating stores in the province of Manitoba. Fast forward to Q1 2022, the company announced a transformative retail acquisition to acquire all of the assets of Uncle Sam’s Cannabis Limited in connection with their 17 operating retail stores based in the province of Alberta and operating under the Uncle Sam’s and Discounted Cannabis brands. The combination of the Uncle Sam’s Cannabis stores and Delta 9's existing store network has made Delta 9 a leading multi-banner retailer of cannabis products in Canada. In September 2022, Delta 9 announced the closing of our acquisition of three Garden Variety cannabis stores in the province of Manitoba. The CAD 3.25 million all-stock transaction added more than CAD 8 million in incremental retail revenues, and we anticipate that this deal will be accretive to EBITDA for Delta 9 into the future. Delta 9 opened its 39th cannabis store in December 2022 in Dauphin, Manitoba, followed by our 40th and 41st cannabis stores in Winnipeg in early 2023. In 2023, we have begun to hone our pricing strategies across all geographies to enhance gross margins in our retail business. Addressing KPIs such as average transaction value, units sold per transaction, revenue per square foot, as well as cross-selling opportunities into non-cannabis products will allow our retail segment to maximize profitability. The company has and will continue to employ an aggressive growth strategy to actively acquire cannabis stores, which will provide meaningful revenue growth and positive Adjusted EBITDA. Management is actively pursuing retail expansion opportunities in all Canadian provinces, which allow for privatized cannabis retail sales, and will continue to expand on its vertical integration into the retail segment. Now onto our financial results. We will begin with an assessment of the balance sheet. The company ended 2023 with approximately CAD 2.2 million in cash, up from a low point in 2023 of CAD 1.7 million as at the end of Q1. Delta 9 showed a working capital deficiency as at the end of the year of CAD 27.9 million, although we note that as of the end of the year, the company was showing a breach of its debt service coverage ratio covenant for its credit facility with connectFirst Credit Union, which required the classification of this debt as current on its balance sheet. The company continues to make required interest and principal repayments on all of its existing credit obligations and does not anticipate any deterioration of its credit condition. The company intends to secure additional or expanded waivers as necessary as the company works to improve its Adjusted EBITDA results and bring its covenants back into compliance. We note that the company has begun a more aggressive deleveraging strategy of its balance sheet, repaying over CAD 2.7 million worth of borrowings over 2023 and producing annualized interest savings in excess of CAD 150,000. We plan to continue to address overall debt levels and expedite repayments of certain tranches of debt through the balance of 2024. This deleveraging will assist in supporting free cash flow improvements in the future quarters. On the company's at-the-market equity facility, the company has raised approximately CAD 3.2 million in gross proceeds over the last 18 months to support its liquidity position and continued expansion. We believe that the company is currently well capitalized to continue to execute on its expansion plans and can act opportunistically where assets become available, which can expedite expansion, provide strategic value, and improve the financial and operating performance of the company. On key performance indicators, in Q4 2023, the company produced approximately 1.1 million grams versus 1.5 million in Q3 last year. This decrease in harvest quantities was anticipated in the wake of cost-cutting measures and decreased capacity announced early last year. Production cost per gram decreased to CAD 0.55 per gram versus CAD 0.78 per gram in the previous quarter. We would highlight that even with the reduction in output capacity, the company continues to find efficiencies in its cultivation business reflected in these metrics. Total grams sold in our wholesale business reached a record 2.5 million grams in Q4 and exceeded grams produced for the third consecutive quarter, allowing the company to draw down inventory levels and improve its turnover ratios in its wholesale business. We note that overall grams sold in the past four quarters represents a significant improvement over the previous four quarters. The company's average selling price decreased to CAD 0.93 per gram versus CAD 1.30 in the previous quarter. While this marks a measured decrease from the company's previous levels, we note that one-time sales of aging cannabis material resulted in a decline. These types of sales are not expected to recur into the future. We will continue to push to maximize production efficiencies to ensure that the company can be competitive in the current market environment, and continuing to address the company's wholesale business and improving overall grams sold and average selling price will continue to be a focus for us moving forward. The company recorded 405,000 retail transactions in Q4 last year, down slightly from our previous record of 420,000 transactions in Q3. Average transaction value was stable at CAD 38.31 per transaction. Average transaction size and units sold per transaction are key growth drivers of focus for Delta 9's retail division through the balance of 2024. On revenue and revenue segmentation, total net revenues for the three-month period and year-ending December 31st were a record CAD 17.5 million and CAD 71 million. This reflected a decrease of 1% but an increase of 12% for the full year 2023. Sequential net revenues decreased 5% versus Q3 this year. From a revenue segmentation standpoint, for 2023, the company recorded retail revenue of CAD 59.3 million versus CAD 50.3 million for the same period last year. Wholesale cannabis revenues were CAD 10.1 million versus CAD 12.1 million in the same period last year, and B2B revenues were CAD 1.4 million versus CAD 1.7 million for the same period last year. The company saw relative strength in its retail segment this year as new store openings in early 2023 began to contribute to top-line growth. Price compression continues to affect cannabis wholesale revenues due to excess competition in the Canadian cannabis market, and our B2B segment continues to face headwinds against a backdrop of uncertain business environment, which we see affecting business sentiment and capital investment. In the upcoming quarters, management will focus on four main growth drivers. First is a focus on same-store sales and KPIs aimed at revenue growth from our existing retail store chain. We have spoken about key improvements and investments the company has planned in its cultivation and processing business, which we feel will help us drive momentum, increase revenue, and improve margins in our cannabis wholesale segment, expanded international market wholesale sales, and finally expanding B2B revenues through a focus on creating relationships in the Canadian micro-cultivation industry and expansion into emerging markets in the United States. We continue to believe that given the relative novelty and uncertainty of the global cannabis industry, the company's diversified revenue and vertical integration approach will allow us to better react to market challenges than our competitors with single-business strategies. Gross profit before accounting for changes in the fair value of biological assets for the three-month period and year-ending last year was CAD 3.6 million, or a 21% gross margin, and CAD 18 million, a 25% gross margin. This compares with CAD 3.4 million, or a 19% gross margin, and CAD 12.9 million, or a 20% gross margin for the same period last year. Management has been undertaking a thorough assessment of our pricing and margin across our various business segments and will continue to look to maximize outcomes by tuning these strategies where necessary. We would attribute the increase in overall gross profit and gross profitability to improvements across all three of our material revenue segments. On January 9th, excuse me, 2023, the company announced a number of cost-cutting measures as part of the company's 2023 strategic plan with the goal of producing positive cash flow from operations, including reducing the company's production capacity at our Delta 9 facilities by 40% and reducing staff by approximately 40 employees at the company. The company anticipated that these cost-cutting measures at the time would result in CAD 3 million-CAD 4 million in annual cost savings in 2023. Operating expenses, excluding share-based compensation for the year-ending December 31st, 2023, were CAD 27.1 million versus CAD 29.5 million, or a decrease of CAD 2.4 million for the year-ending 2023. When factoring out non-cash items, operating expenses decreased by over CAD 3 million, or 11% versus the previous year. The company's loss from operations for the three-month period and year-ending December 31st, 2023, was CAD 4.3 million and CAD 13.5 million. This compares with CAD 7.7 million and CAD 20 million for the same period and previous year. This also compares with a loss of operations of CAD 4.4 million for the three-month period ending September 30th. The company's Adjusted EBITDA for the three-month period ending December 31st last year was a gain of CAD 1.5 million and CAD 3.4 million for the full year. This compares with a loss of CAD 1.5 million and CAD 5.3 million for the same period last year. We attribute the improvements in Adjusted EBITDA in the period to a higher overall net revenue and gross margin profile as noted from our material business segments, as well as savings as a result of the company's cost-cutting measures announced in January last year. We are confident that the company's recent acquisitions, cost-cutting initiatives, and renewed focus on revenue growth and profitability will return the company to a strengthened Adjusted EBITDA position in the coming quarters. We also note that this marks the company's third consecutive quarter of positive Adjusted EBITDA, which is our main barometer of profitability for the company. We see this result as a materially positive milestone for Delta 9. We note that operating cash flows have also improved materially versus the previous year, again relating to the company's cost-cutting initiatives. Cash generated from operations for the year ending 2023 was CAD 4.2 million versus cash used in operations of CAD 3.6 million for the same period last year. As we look forward to the 2024 operating year, we feel confident that the company is positioned to execute on our vertical integration and growth strategies. In our production and wholesale segment, the company will continue to push forward to maximize the utility and efficiency of our existing assets, pushing to operating cash flow positive on the back of our recently announced cost-cutting initiatives and increase our ability to supply volumes of cannabis across our various markets. In our retail segment, we will add to our retail and distribution capacity by adding new stores to our existing chain. We will continue to position as a retailer of choice for both retail customers and suppliers, seeking the best locations and positioning as the most competitive LP-owned retailer in the cannabis space. In our B2B segment, we will continue to cultivate long-term and value-added relationships with our B2B customers as we deliver on growth projects across the country while deploying our resources into international markets to position our non-plant-touching business to realize growth in the ever-growing cannabis opportunity globally. I want to thank everyone for taking the time to join the call this morning, and I will turn the call back over to the operator for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. One moment, please, for your first question. Ladies and gentlemen, as a reminder, please press star one now if you have any questions. I am showing no questions. I will turn the call back over to John Arbuthnot. There being no questions this morning, I want to thank everyone for taking the time to join us for our 2023 year-end conference call. I will turn it back over to the operator to wind up. Ladies and gentlemen, this concludes today's conference. We thank you for participating, and we ask that you please disconnect your lines.