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Formerly Westleaf Inc.

Decibel Announces Promotion of Kris Newell to Chief Operating Officer


CALGARY, AB, April 20, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, is pleased to announce the promotion of Kris Newell to the recently created position of Chief Operating Officer, effective as of today. In this role, Kris will be responsible for overseeing the management of Decibel’s two licensed cannabis cultivation facilities, as well as its cannabis processing facility.

“Kris has demonstrated a strong ability to identify, coordinate and successfully implement positive change throughout Decibel’s operations,” said Cody Church, Interim CEO of Decibel. “We are excited to benefit from Kris’ leadership as we ramp up operations at our larger indoor craft Thunderchild Cultivation facility, significantly increasing our production of the ultra-premium Qwest Reserve product line and the premium Qwest flower and pre-roll products.”

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the Company’s expectations regarding its ability to bring a significant pipeline of new and innovative products to the market, expected number of grow rooms at Thunderchild at the timing of the first revenue therefrom, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Decibel Cannabis Company Inc.

For further information: Contact Stuart Boucher, stuart.boucher@decibelcc.com, 780-619-0310, www.decibelcc.com

Related Links

www.decibelcc.com

Decibel Announces Stock Option Grants


CALGARY, AB, April 16, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, announces that it has granted, effective after market close on April 15, 2021, an aggregate of 4,246,003 stock options (each, an “Option”) to certain officers and employees of the Company in accordance with the Company’s stock option plan.

Each Option is exercisable for one common share in the capital of the Company (a “Share”) at a price of $0.17 per Share, being the closing price of the Shares on the TSX Venture Exchange on April 15, 2021. This is a normal-course grant that comprises part of the long-term compensation and employee retention incentives program provided by the Company. The Options will vest in equal installments on January 1, 2022, January 1, 2023 and January 1, 2024 and will expire on January 1, 2026.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the anticipated vesting and expiry date of the Options. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Decibel Cannabis Company Inc.

For further information: Contact Stuart Boucher, stuart.boucher@decibelcc.com, 780-619-0310, www.decibelcc.com

Related Links

www.decibelcc.com

Decibel Announces Record Year End Results, Strong Net Revenue Growth of 51% from Prior Quarter and 2nd Consecutive Period of Positive Adjusted EBITDA


CALGARY, AB, April 14, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF) , a premium cannabis producer and retailer, is pleased to announce its year-end financial results for the three and twelve month periods ending December 31, 2020.

“The success achieved in 2020 reflects Decibel’s commitment to sustainable profitability and product quality, all while executing on an aggressive growth plan” said Cody Church, Interim CEO of Decibel. “We continue to execute as a leading producer of premium cannabis, growing our production from 1,800 kg to over 9,000 kg in this year to meet the strong demand for our Qwest Family of Brands. We are gaining momentum with our cannabis 2.0 portfolio as it continues to gain market share, validating Decibel’s approach to product innovation while maintaining our commitment to quality.”

Key Financial Highlights – Fiscal Year 2020

  • Net revenue of $30 million in 2020, an increase of 380% from 2019.
  • Gross profit of $11.7 million in 2020, an increase of 2,888% from 2019.
  • Positive adjusted EBITDA of $1.5 million in 2020, an improvement of $3.5 million from 2019.
  • Fourth quarter contributed $1.1 of the $1.5 million in adjusted EBITDA achieved in the year.

Key Financial Highlights – Fourth Quarter

  • Record Net Revenue: Net revenue grew to $11.4 million in the fourth quarter, a 51% increase, over the prior quarter, driven by strong sales growth from Qwest dried flower and newly launched vape and concentrate products. Net revenue grew by 645% over the comparative 2019 quarter.
  • Record Positive Adj. EBITDA: The Company achieved a record $1.1 million of adjusted EBITDA in the fourth quarter, its second consecutive quarter of positive adjusted EBITDA, and an increase of 28% from the prior quarter. Adjusted EBITDA improved by $4 million over the comparative 2019 quarter.
  • Record Qwest Sales: 378 kilograms sold in the fourth quarter, with an average wholesale net price per gram of $8.59, a volume increase of 39% and pricing in line over the prior quarter. Decibel continues to see strong demand for premium cannabis and its Qwest products, which command industry leading pricing with demand outstripping current supply. Kilograms sold and average wholesale net price per gram increased by 125% and 23%, respectively, over the comparative 2019 quarter.
  • First Full Quarter of Derivative Sales: Achieved $4.5 million of net sales of newly launched vape and concentrate products in the fourth quarter. Decibel had 22 product SKUs in market across four provinces including British Columbia, Alberta, Saskatchewan, and delivered its first shipment to Ontario at the end of December.
    • In January, Decibel achieved a 22% market share in concentrates and a 9% market share in vape categories across British Columbia, Alberta, Saskatchewan and Ontario1,2
  • Retail Sales: $3.7 million of retail sales, a 7% decrease over the prior quarter. Decibel’s retail portfolio continues to bring strategic value, contributing to the success of product innovation and understanding consumer trends.
  • Strengthened Balance Sheet: Decibel completed a $30 million debt refinancing comprised of $28.5 million of term debt and a $1.5 million authorized overdraft. The proceeds were used to fully repay Decibel’s then outstanding $26.8 million of debt with its former lender and provide additional liquidity. The new credit facility resulted in several positive impacts:
    • $3.2 million of additional liquidity available for working capital purposes.
    • Extended debt maturity by 5 years and debt amortizes over a 10 year term.
    • Repayment schedule aligned to operational timeline with $16 million having an interest only period ending in Q3 2021. Principal savings over this period provide Decibel flexibility and additional resources to support its growth strategy.
    • Reduced blended interest rate by ~1.70%, to 4.75% for outstanding term debt and Prime + 1.00% for the authorized overdraft. This represents approximately $360 thousand in annual interest savings over the full year 2021.
    • Simplified financial covenants to a monthly current ratio of not less than 1.25:1 and two annually tested covenants, a debt service coverage ratio of not less than 1.40:1.00, and a debt to equity ratio of not greater than 0.75:1.00 at the end of 2021 and 0.50:1.00 for all fiscal years ending thereafter.

Year-End and Quarterly Highlights

Subsequent Events

  • On January 29, 2021, the Company’s wholly-owned subsidiary, dB Thunderchild Cultivation LP, received a cultivation license from Health Canada for its cultivation, packaging and processing facility, located in Battleford, Saskatchewan (the “Thunderchild Cultivation Facility“). The licensing of the Thunderchild Cultivation Facility significantly increases Decibel’s cultivation capacity by more than four times, to >9,000 kilograms of premium craft cannabis, allowing Decibel to meet the tremendous consumer demand it is experiencing for Qwest products.

Decibel’s financial statements for the three and twelve month periods ending December 31, 2020 (“Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) for the reporting period are available under the Company’s profile at www.sedar.com. As of December 31, 2020, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.  

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation, processing and distribution space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. The Thunderchild Cultivation Facility, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction, processing and manufacturing facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a “Non-GAAP Measure”). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three and twelve months ended December 31, 2020. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company.

The Company calculates Adjusted EBITDA as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs and severance payments. Non-cash production costs relate to amortization expense allocations included in production costs. Non-GAAP Measures should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel’s operating results, underlying performance and prospects in a manner similar to Decibel’s management.

Accordingly, this Non-GAAP Measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the Company’s ability to meet consumer demand, the Company’s expectations with respect to its ability to comply with its financial covenants, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Decibel Cannabis Company Inc.

For further information: Contact Stuart Boucher, stuart.boucher@decibelcc.com, 780-619-0310, www.decibelcc.com

Decibel Cannabis Company Provides Update On Derivative Product Sales and Key Milestones


CALGARY, AB, Feb. 17, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, is pleased to provide a business update regarding its recent launch of cannabis derivative products and other key milestones.

“We’ve strongly positioned ourselves to succeed in the vape and concentrate market in Canada and are proud to be delivering on our plans and promises. In continuing to follow and optimize our strategic vision, Decibel is steadily working to become a market leader in the high growth vape and concentrate product categories,” said Cody Church, Interim Chief Executive Officer of Decibel. “By leveraging the uncompromising approach we take across the fulsome Decibel business, the products we’re creating are of the highest quality and consideration. We will not let our customers down and will continue to bring a significant pipeline of new and innovative products to the market.”

“We continue to differentiate ourselves not only in our product strategy, but also as one of the few cannabis companies showing profitable results in the third quarter of 2020. We have remained steadfast that sustainable and profitable growth is one of our primary goals.” added Stuart Boucher, Chief Financial Officer of Decibel.

Business Update

Since September 2020, Decibel has launched a total of 26 vape and concentrate SKUs into the recreational market across five provinces including British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario. In January, Decibel achieved a 22% market share in concentrates and a 9% market share in vape categories across British Columbia, Alberta, Saskatchewan, and Ontario1,2. Looking ahead, the Company anticipates launching over 30 additional SKUs including its highly anticipated launch of Qwest branded vapes and concentrates.

  • First branded derivative product shipment to Manitoba completed in February
  • Across British Columbia, Alberta, and Saskatchewan, four months into its product launches, Decibel has achieved1:
    • #1 in concentrate sales under its Blendcraft by Qwest brand in the last 60 days
    • #3 in vape sales under its General Admission brand in the last 60 days
  • In Ontario, one month into its product launches, Decibel has achieved2:
    • #3 in concentrate sales under its Blendcraft by Qwest brand
    • #8 in vape sales under its General Admission brand

After receiving its latest cultivation license, operations are well underway at Decibel’s Thunderchild facility – a facility which is critical to Decibel’s long term strategic growth plan and will deliver consumers more choice of quality grown, rare cultivars in the dried flower and pre-roll product categories.

  • Qwest flower products achieve some of the highest prices in Canada (Q3’20 – $10.18 / gram)
  • Through its combined facilities, Decibel will be launching 6 – 10 new genetics over the next year, including Stuffed French Toast and Sunset MAC coming soon
  • Decibel’s Qwest flower products remain in short supply and have been out of stock in key provincial markets due to high consumer demand for its flower products
    • Thunderchild increases capacity from 1,800 kilograms to more than 9,000 kilograms
    • Four flower rooms already planted and at various stages (20% of total facility planted)
    • Thunderchild first revenue expected Q2 2021
HiFyre Retail Analytics, Licensed Producer Sales over Time in BC, AB, SK, December 1, 2020 – January 31,  2021
HiFyre Retail Analytics, Licensed Producer Sales over Time in ON, January 1, 2021 – January 31, 2021

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the Company’s expectations regarding its ability to bring a significant pipeline of new and innovative products to the market, expected number of grow rooms at Thunderchild at the timing of the first revenue therefrom, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Decibel Cannabis Company Inc.

For further information: Contact Stuart Boucher, stuart.boucher@decibelcc.com, 780-619-0310, www.decibelcc.com

Decibel Announces Receipt of Cultivation License for the Thunderchild Facility and Director Resignations


CALGARY,  AB, Jan. 29, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V: DB) (OTCQB:DBCCF), is pleased to announce that the Company’s wholly-owned subsidiary, dB Thunderchild Cultivation LP, has been granted a cultivation license from Health Canada for its Thunderchild facility.

“The Thunderchild licensing represents another significant milestone for Decibel and the final step in completing Decibel’s current slate of large scale growth projects,” said Cody Church, Interim CEO of Decibel. “We are excited to drastically expand our cultivation capacity and bolster our supply of Qwest branded products which have seen tremendous consumer demand.”

The Thunderchild facility is a large scale indoor cultivation facility designed for hands on, high standard craft cannabis production. The licensing expands Decibel’s available cultivation capacity from 1,800 kilograms to more than 9,000 kilograms of premium craft cannabis sold under the Qwest family of brands, which achieves some of the highest prices in Canada ($10.18 average gross price per gram – Q3’20). The facility is critical to Decibel’s long term strategic plan and will deliver consumers more choice of high quality, and rare cultivars in the flower and pre-roll product categories.

Director Resignations

Decibel’s Board of Directors has been reconstituted to enable the receipt of the cultivation license for the Thunderchild facility by limiting the Board of Directors to those individuals who had previously received Health Canada security clearance. Effective January 29, 2021, Benjamin Sze, Dr. Ivan Casselman, and Billy Yellowhead resigned from their positions as directors of the Company (the “Resigned Directors”). Dr. Casselman and Mr. Yellowhead will serve in a limited capacity as advisors to the Company as they continue to progress through Health Canada security clearance, while Mr. Sze will continue to focus his attention on his family. The Resigned Directors will only be re-appointed to the Board once they’ve obtained their security clearances.

“Decibel would like to thank Benjamin for all of his hard work, leadership and vision during his time with the Company,” said Cody Church, Interim CEO of Decibel. “We cannot thank Benjamin enough for the positive impact he has had on both the individuals and business of Decibel and although we are saddened by Benjamin’s departure, we fully support his decision to focus on his family at this time”. Mr. Church will continue to serve as the Company’s interim CEO until a formal replacement is announced.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the results of the licensing of the Thunderchild facility, Decibel’s anticipated security clearances and re-appointments of resigned directors, its ability to reach certain milestones, capacity levels, and maintenance of quality and pricing. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain or maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and receipt or maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Decibel Cannabis Company Inc.

Decibel Announces Closing of Non-Dilutive $30 Million Debt Financing


CALGARY, AB, Jan. 4, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), is pleased to announce that on December 31, 2020 it closed its previously announced financing with Connect First Credit Union Ltd. in respect of $30 million of debt capital.

Financing Highlights

  • Total Capital & Extended Maturity: The credit facilities includes $28.5 million of term debt and a $1.5 million authorized overdraft to repay Decibel’s existing debt of $26.8 million. The credit facilities mature 5 years from the funding date and amortize over a 10 year term (prior debt was on average a 5 year amortization term).
  • Improved Liquidity: The financing results in $3.2 million of immediate gross proceeds and an additional ~$1 million of principal repayment savings commencing on December 31, 2020. The proceeds will support Decibel’s continued sales growth and working capital requirements.
  • Alignment to Operational Schedule: The credit facilities are aligned to Decibel’s operational schedule. The Company will benefit from an interest only period on $16 million of the term debt, ending in the third quarter of 2021. Principal savings over this period will provide Decibel flexibility and additional resources to support its growth strategy.
  • Lower Interest Rate: The committed interest rate under the credit facilities is a 5 year fixed rate of 4.75% for the term debt and Prime + 1.00% for the authorized overdraft. This reflects a blended interest rate reduction of approximately 1.70%, representing approximately $360 thousand of annual interest savings for Decibel over the full year 2021.
  • Simplification of Financial Covenants: The credit facilities have two annually tested financial covenants, a Debt Service Coverage Ratio of not less than 1.40:1.00, and a Debt to Equity Ratio of not greater than 0.75:1, to commence following Decibel’s 2021 year end (December 31, 2021). The Debt to Equity ratio in subsequent years will step down to 0.50:1 in 2022. The Credit Facilities also have a monthly current ratio covenant of not less than 1.25:1 beginning January 2021. Decibel’s 12 month forecast projects compliance with all financial covenants.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2021. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, Decibel’s anticipated principal savings, including the amount, date of commencement and impact thereof; Decibel’s expected compliance with its financial covenants; the date of repayment of Decibel’s ATB facility and the implied closing date the Credit Facilities; and the anticipated completion and licensing date of Thunderchild Cultivation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain or maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and receipt or maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about the Company’s prospective results of operations including, without limitation, the expected results of its costs cutting measures and, which are subject to the same assumptions, risk factors, limitations, and qualifications as  set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits the Company will derive therefrom. The Company has included the FOFI in order to provide readers with a more complete perspective on the Company’s future operations and such information may not be appropriate for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Decibel Cannabis Company Inc.

For further information: Stuart Boucher, stuart.boucher@decibelcc.com, 780.619.0310, www.decibelcc.com

Decibel Announces Net Revenue Increases of 29% from Prior Quarter, First Period of Positive Adjusted EBITDA and Results of Annual Meeting


CALGARY, AB, Nov. 25, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, is pleased to announce its third quarter financial results for the three-month and nine-month periods ending September 30, 2020.

"We are beginning to demonstrate the positive results of our collective efforts to reposition Decibel for success, as we remain focused on executing our strategic plan" said Benjamin Sze, CEO of Decibel. "We continue to execute as a producer of premium cannabis, with strong demand for our latest cultivars. The early success of our cannabis 2.0 product categories validates Decibel’s approach to product innovation while maintaining our commitment to quality."

In the third quarter of 2020, the Company achieved net revenue growth of 29% and, for the first time, positive adjusted EBITDA, by delivering net revenue growth in all business verticals. The Company executed on its strategic plan, delivering high end cannabis products and consumer experiences through its Qwest Family of Brands and Prairie Records retail business, realizing cost reductions, and launching vape and concentrate products within the third quarter.

Q3 2020 Financial and Operational Highlights 

  • Net Revenue Growth: Total net revenue grew by 29% over the second quarter to $7.6 million, driven by strong sales growth from retail and cultivation operations, and only includes one month of derivative product sales in September. Net revenue grew by 163% over the comparative 2019 period.
  • First Period of Positive Adj. EBITDA: The third quarter marks an inflection point in the business, as the Company achieved $860 thousand of adjusted EBITDA, an improvement of $886 thousand from the prior quarter.
  • Increased Qwest Sales: 272 kilograms sold in the third quarter, with an average wholesale flower net price per gram of $8.68 for the period, a 9% increase over the second quarter of 2020. The Company launched new trendsetting cultivars that deliver high THC and strong terpene profiles at the start of the quarter, including Kush Mints, Point Break, and Ex-Wife.
  • First Month of Derivative Sales: In September, Decibel achieved a key milestone with its extraction and manufacturing facility, The Plant, shipping its first orders to Saskatchewan and Alberta. This initiative contributed $785 thousand of net revenue for the period. Initial product launches have been well received with reorders being received shortly after initial sales.
  • Strong Prairie Records Results: Increased revenue for the period to $3.9 million, reflecting sales growth of 2% over the second quarter of 2020. Decibel opened two new Alberta retail stores in July, one near the University of Alberta campus in Edmonton and one beside the Palace Theatre in downtown Calgary on Stephen Ave.
  • Cost Reduction Initiatives: Decibel completed the majority of its corporate cost cutting initiatives in the third quarter, and remains laser focused on managing costs and driving profitable operations. Had Westleaf and We Grow been combined for the entire 2019 year, a 32% reduction in SG&A year to date would have been realized, despite commencing commercial operations at the Plant and new retail store openings in Q3 2020.
  • Substantial Completion of Construction of Thunderchild Cultivation: Decibel substantially completed construction of its large scale, indoor cultivation facility, Thunderchild Cultivation, in July. The Company has submitted a complete site evidence package to Health Canada for licensing of the Thunderchild Cultivation facility.

Quarterly Highlights

Three months ended

Nine months ended

September 30, 

September 30, 

September 30, 

September 30, 

2020

2019

2020

2019

Net wholesale revenue of flower

$2,361

$2,880

$6,578

$4,702

Kilograms of flower sold

272

369

782

563

Average wholesale flower gross pricing per gram 

$10.18

$9.07

$10.15

$9.81

Average wholesale flower net pricing per gram

$8.68

$7.80

$8.41

$8.35

Kilograms of cannabis harvested

311

345

936

1,080

Net wholesale revenue of extracts

$785

$785

Other wholesale revenue

$500

$565

Number of retail stores

6

nil

6

nil

Retail revenue

$3,932

nil

$10,578

nil

Total 

Net revenue

$7,578

$2,880

$18,505

$4,702

Gross profit before fair value adjustments 

$2,898

$1,126

$7,164

$1,804

Adjusted EBITDA (a)

$860

$875

$425

$0

(a) 

Adjusted EBITDA is a non-GAAP performance measure. Refer to "Cautionary Statements – Non-GAAP Measures" for further details.

Decibel’s financial statements for the three-month period ending September 30, 2020 ("Financial Statements") and related Management’s Discussion & Analysis ("MD&A") for the reporting period are available under the Company’s profile at www.sedar.com.  As of September 30, 2020, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.  The Company’s ability to meet the conditions of these ratio covenants over the next twelve months is subject to the Company’s ability to operationalize capital projects that are either recently completed or are subject to Health Canada licensing and operationalizing, and all other applicable regulatory approvals in order to generate revenues.

Leave of Absence

Due to personal reasons, Benjamin Sze, Chief Executive Officer, is taking a leave of absence from his role as Chief Executive Officer of the Company as of the close of business today for an indefinite period of time. Cody Church, the Company’s current Chairman of the Board, has been appointed Interim Chief Executive Officer, effective as of the close of business on November 25, 2020.

Results of Annual Meeting

Decibel is also pleased to announce that its shareholders approved all matters submitted by the Company for consideration at its annual and special meeting of shareholders held yesterday, November 24, 2020 (the "Meeting").

Due to the special circumstances arising from the global COVID-19 pandemic, and following guidance of local health authorities for social distancing, Decibel encouraged shareholders to vote in advance of the Meeting using the instructions provided in the Notice of Meeting and Management Informational Circular and Proxy Statement. The Company also provided remote access to the Meeting via an audio webinar, and will make a recording of the Meeting available on its website in the coming days.

At the Meeting, Decibel’s shareholders:

(i) 

Fixed the number of directors of the Corporation to be elected at the Meeting at six directors;

(ii) 

Elected each of Cody Church, Paul Wilson, Michael Kelly, Ivan Casselman, Benjamin Sze and Billy Yellowhead as directors of the Company;

(iii) 

Appointed KPMG LLP, Chartered Professional Accountants, as the Company’s auditors;

(iv) 

Re-approved the Company’s stock option plan; and

(v) 

Re-approved the Company’s restricted share unit award plan.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2020. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, Decibel’s expected compliance with its financial covenants, the timing, construction and licensing of the Thunderchild Cultivation facility and the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain or maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and receipt or maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company’s prospective results of operations including, without limitation, the expected results of its costs cutting measures and, which are subject to the same assumptions, risk factors, limitations, and qualifications as  set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits the Company will derive therefrom. The Company has included the FOFI in order to provide readers with a more complete perspective on the Company’s future operations and such information may not be appropriate for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three months ended September 30, 2020. The Company believes that Adjusted EBITDA is a useful indicator of operating performance and is specifically used by management to assess the financial and operational performance of the Company.

The Company calculates Adjusted EBITDA as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs, severance payments, and other non-cash costs. Non-cash production costs relate to amortization expense allocations included in production costs. Non-GAAP Measures should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel’s operating results, underlying performance and prospects in a manner similar to Decibel’s management.

Accordingly, this Non-GAAP Measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE Decibel Cannabis Company Inc.

Decibel Announces Measures to Provide Additional Access to Shareholder Meeting in Light of COVID-19 Guidelines and Restrictions


CALGARY, AB, Nov. 20, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSX-V: DB) (OTCQB: DBCCF), announced today that its annual and special meeting (the "Meeting") of shareholders ("Shareholders") scheduled to take place on Tuesday, November 24, 2020 at 1:00 p.m. (MST), will be made available via audio webinar.

The Company encourages Shareholders and proxyholders not to attend the meeting in person, particularly if they are experiencing any COVID-19 symptoms. Pursuant to the most recent Alberta Health Services guidelines (www.albertahealthservices.ca) related to COVID-19 pandemic, access to the Meeting at the offices of Burnet, Duckworth & Palmer LLP at 2400, 525-8th Avenue S.W., Calgary, Alberta, will be limited to essential personnel and registered Shareholders and proxyholders entitled to attend and vote at the Meeting.

The Company encourages Shareholders to vote their shares prior to the Meeting following the instructions set out in the form of proxy or voting instruction form received by such Shareholders.  

Shareholders, interested investors and analysts and other stakeholders are invited to dial-into the Meeting at 1:00pm MST on Tuesday, November 24, 2020 login through the following instructions:

By Telephone:

1-855-703-8985 (Canada toll free)

1-833-548-0276 (US toll free)

By URL:

https://zoom.us/pac/join/6235137154

Conference Identification:

623 513 7154

Passcode:   123456

Shareholders attending the Meeting virtually will not be able to vote their shares at the Meeting. Voting results for each of the resolutions to be considered at the Meeting will be announced after the Meeting.

Given these exceptional circumstances and the requirement to mitigate the related COVID-19 pandemic risks, there will be no management presentation at the Meeting, nor will there be a question and answer session with management.

The Company thanks its valued shareholders and apologizes for any inconvenience caused as a result of the precautionary safety measures taken in respect of the Meeting.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2020. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the timing, construction and licensing of the Thunderchild Cultivation facility and the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain or maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and receipt or maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Decibel Cannabis Company Inc.

Decibel Launches ‘Blendcraft by Qwest’ Concentrates, ‘General Admission’ Vapes and ‘CÜE’ Small Format Beverages


CALGARY, AB, Oct. 22, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer and retailer, is pleased to announce the launch of cannabis derivative products produced at its extraction facility, The Plant.  

"Our product strategy is driven by our intimate knowledge of the end consumer through our Prairie Records retail stores," said Adam Coates, Chief Growth Officer of Decibel. "This position allows for insights such as identifying whitespace opportunities the current market is not fulfilling, and understanding key product attributes consumers are looking for in established formats. With these insights, we are launching black market quality concentrates, high potency, strain specific vapes and the CÜE line of fast acting 10mg THC shot style beverages."

Product Launch Highlights

  • 10 Product Skus Launched: Achieved its first 57 product sku registrations in Western Canada and a supply agreement with the Ontario Cannabis Retail Corporation, with 10 skus currently available in cannabis retail stores across British Columbia, Alberta and Saskatchewan. The first shipments of products were delivered in late Q3.
  • Blendcraft by Qwest Concentrates: Decibel’s first derivative product launches under the Blendcraft by Qwest banner with 4 skus of Wax (crumble) and 4 skus of Shatter. These high potency, in demand concentrates compliment the rare cultivar, craft dried flower products the Company produces under the Qwest Family of Brands.
  • General Admission Vapes: Decibel has launched its new brand, General Admission, with four strain specific vapes (Berry G 33, Tropic GSC, Lemon Ice and Tropic Thunder) in 0.45g and 0.95g cartridges, and 0.3g disposable formats. With high potency THC dominant and THC/CBD balanced formulations and a strong value-for-price ratio, first shipments of these products have been successful with re-orders from initial product shipments achieved within the first week of launch.
  • CÜE Fast Acting Cannabis Shots: The Company has entered into a definitive agreement with Origin Scientific Inc., a private Canadian company, to manufacture and distribute CÜE fast acting cannabis shots. CÜE has developed an industry leading, clinically proven and patented nano encapsulation technology that has been formulated into a fast-acting cannabis infused shot style beverage. "CÜE Lemon Tea", a 59ml cannabis shot with 10mg of THC and 30mg of naturally occurring caffeine is expected to be the initial product offering, which the Company anticipates to be available for sale in November.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2020. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the Company’s expectations regarding the timing of the launch of "CÜE Lemon Tea", the timing, construction and licensing of the Thunderchild Cultivation facility, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain or maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and receipt or maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Decibel Cannabis Company Inc.

Decibel Releases Second Quarter Results Highlighting Positive Developments with Launch of Cannabis 2.0 Products


CALGARY, AB, Aug. 28, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, is pleased to announce its second quarter financial results for the three-month and six month periods ending June 30, 2020.

In the second quarter of 2020, the Company achieved positive cash flow for the first time by delivering net revenue growth in both its high end product brand Qwest and Prairie Records retail businesses, realizing cost reductions and continuing to execute on its business strategy.

Q2 2020 Financial and Operational Highlights 

  • Net Revenue Growth: Total net revenue grew by 17% in the second quarter to $5.9 million, over the first quarter of 2020, driven by continued execution on the Company’s strategic plan with strong same store sales growth from retail operations and continued demand for Qwest products.
  • Adjusted EBITDA Improvement: Through strong revenue growth and a focus to realize cost reductions in the quarter, achieved Adjusted EBITDA loss of $26 thousand, an improvement of $384 thousand over the first quarter of 2020.
  • Increased Qwest Sales: 258 Kilograms sold in the second quarter, with an average wholesale flower gross price per gram of $10.03 for the period. During the quarter, the Company executed tactical pricing initiatives on older strains in Alberta and Saskatchewan, which helped drive distribution, volume and velocity in retail stores and increased consumer trial of the premium Qwest family of brands products.
  • Strong Prairie Records Results: Increased revenue for the period to $3.8 million, including same stores sales growth of 37% over the first quarter of 2020. Showing continued strong retail execution by reducing days of inventory to a targeted 30 days and disposing of non-core leases.
  • First Sales of Vape Pens and Concentrates: Subsequent to quarter end, Decibel achieved a key milestone with its extraction and manufacturing facility, The Plant, shipping its first orders to Saskatchewan and receiving initial purchase orders for its first 10 SKUs of vapes and concentrates. Decibel received its sales amendment for cannabis derivative products 46 days ago, on July 13, 2020.
  • New Cultivar Launches: Late June, launched trendsetting cultivars that deliver high THC and strong terpene profiles, including one of the highest recorded THC percentages for Decibel’s Kush Mints cultivar. The new cultivars continue to demonstrate Qwest’s premium pricing having achieved an average blended gross price of $11.23 per gram.
    • Qwest Reserve – Kush Mints – 31.7% THC;
    • Qwest Reserve – MAC1 at 28% THC;
    • Qwest Reserve – Point Break at 25% THC; and
    • Qwest – Pineapple Cake at 24% THC.
  • Two New Store Openings: Opened two new Alberta retail stores in July, one near the University of Alberta campus in Edmonton and one beside the Palace Theatre in downtown Calgary on Stephen Ave.
  • Substantial Completion of Construction: Subsequent to quarter end, Decibel substantially completed construction of its large scale, indoor cultivation facility, Thunderchild Cultivation, and has begun bringing genetics into the facility.

"The first half of 2020 presented some great challenges for Decibel, integrating the two companies, managing through the pandemic and tremendous volatility in the capital markets, all while staying focused and executing our strategic plan" said Benjamin Sze, CEO of Decibel. "We continue to make significant strides in becoming a premier producer of premium cannabis and cannabis 2.0 products."

Appointment of Senior Advisor
Decibel is pleased to announce that it has appointed Dr. Ivan Casselman (Ph.D., FLS), a cannabis science advisor and plant medicine researcher, as a senior advisor to Decibel. He has worked in the BC cannabis industry for over a decade. His experience as an analytical chemist and plant medicine researcher gives him a unique insight into product development and business development strategy in the cannabis sector. 

"I am so excited to be invited to advise Decibel and to help chart the future course of the company. For decades, BC has been known for the production of high-quality cannabis. Decibel is a company rooted in that BC tradition" said Dr. Ivan Casselman. "As the medical and legal cannabis market continues to develop and grow in Canada, Decibel has an amazing opportunity to bring that tradition to the rest of Canada and one day, the world."

Quarterly Highlights

Three months ended

Six months ended

June 30, 2020

June 30, 2019

June 30, 2020

June 30, 2019

Net wholesale revenue

$2,054

$1,316

$4,281

$1,822

Kilograms sold

258

134

511

194

Average wholesale flower gross pricing per gram

$10.03

$11.86

$10.25

$11.23

Average wholesale flower net pricing per gram

$7.97

$9.82

$8.38

$9.39

Kilograms of cannabis harvested

311

437

625

625

Number of retail stores

4

nil

4

nil

Retail revenue

$3,837

nil

$6,646

nil

Total

Net revenue

$5,891

$1,316

$10,927

$1,822

Gross profit before fair value adjustments

$2,124

$542

$4,266

$678

Adjusted EBITDA (a)

($26)

$385

($436)

$253

(a)

Adjusted EBITDA is a non-GAAP performance measure. Refer to "Cautionary Statements – Non-GAAP Measures" for further details.

Credit Facility Amendment

On May 22, 2020, Decibel entered into an agreement to amend its credit agreement with ATB Financial. The Company believes the amended agreement is better aligned with the Company’s balance sheet and cash flow expectations and provides financial flexibility over the near term.

Decibel’s financial statements for the three-month period ending June 30, 2020 ("Financial Statements") and related Management’s Discussion & Analysis ("MD&A") for the reporting period are available under the Company’s profile at www.sedar.com. As of June 30, 2020, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve month forecast period.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2020. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither 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.

Cautionary Statements

Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the Company’s expectations regarding the production of high THC premium dried flower and the launch of concentrates and vape products out of The Plant, the timing, construction and licensing of the Thunderchild Cultivation facility, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and ranges found within third party test results related to tested THC percentages, the Company’s expectations with respect to the amended credit agreement’s ability to provide financial flexibility and allow the Company to meet its near term objectives. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain or maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and receipt or maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company’s prospective results of operations including, without limitation, its expected revenue growth, which are subject to the same assumptions, risk factors, limitations, and qualifications as  set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits the Company will derive therefrom. The Company has included the FOFI in order to provide readers with a more complete perspective on the Company’s future operations and such information may not be appropriate for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three months ended June 30, 2020. The Company believes that Adjusted EBITDA is a useful indicator of operating performance and is specifically used by management to assess the financial and operational performance of the Company.

The Company calculates Adjusted EBITDA as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs, severance payments, and other non-cash costs. Non-cash production costs relate to amortization expense allocations included in production costs. Non-GAAP Measures should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel’s operating results, underlying performance and prospects in a manner similar to Decibel’s management.

Accordingly, this Non-GAAP Measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE Decibel Cannabis Company Inc.