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Formerly Westleaf Inc.

Decibel Announces a Fourth Consecutive Month of Record Market Share and Provides an Operational Update


CALGARY, ALBERTA – March 14, 2022 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to provide an operational update with respect to its capital projects and announces its fourth consecutive month of record market share in February.

“With our capital projects having achieved key milestones, it is a testament to our commitment to quality products, which continue to drive strong growth in market share” said Paul Wilson, Chief Executive Officer of Decibel. “As these strategic investments come online, we anticipate operational efficiency gains that will enhance gross margins and drive growth in our bottom line.”

Market Share Summary

 Nov. 2021Dec. 2021Jan. 2022Feb. 2022
Canada13.3%3.4%3.6%3.8%
Major Markets14.0%4.2%4.3%4.6%
Ontario13.1%3.1%3.2%3.3%

Market Share in Decibel’s Major Markets1

  • Record 4.6% recreational market share in Decibel’s major markets in February
    • #1 brand in premium flower & pre-roll sales with a 9.3% market share2
    • #5 LP in pre-roll sales with a 6.2% market share
      • #3 LP in Alberta with a 9.8% market share, where the Company is furthest developed with its infused pre-roll product launches
    • #4 brand in concentrate sales with a 7.3% market share
    • #2 brand in vape sales with a 12.5% market share

National Market Share1

  • Record 3.8% recreational National market share in February
    • #1 brand in premium flower & pre-roll sales with a 7.6% market share2
    • #7 LP in pre-roll sales with a 4.9% market share
    • #4 brand in concentrate sales with a 5.8% market share
    • #2 brand in vape sales with a 12.4% market share

Ontario Market Share1

  • Record 3.3% recreational Ontario market share in February
    • #2 brand in premium flower & pre-roll sales with a 6.6% market share2
    • #9 brand in concentrate sales with a 3.5% market share
    • #2 brand in vape sales with a 11.7% market share

Operational Update

The Plant Processing Hub

Decibel has completed construction of Phase 1 of its processing hub expansion at the Plant. Additionally, the Company has submitted a Health Canada amendment for the Phase 1 area and has initiated permitting for Phase 2 construction to complete the remainder of the capital project. Upon licensing, the Phase I area will include newly automated processing and packaging lines for dried flower and pre-roll products accompanied by significantly reduced labour and logistics costs. The Health Canada license is expected to be received within Q2 2022.

Creston Infrastructure Optimization

In early March, the Company completed the final grow room upgrade at the Creston facility, as a part of its staged infrastructure optimization project. This upgrade is anticipated to have an immediate impact on all new harvests, further enhancing product quality and contributing to higher yields per room.

Thunderchild Infrastructure Optimization

The Company is accelerating the implementation of the staged infrastructure optimization at its Thunderchild Cultivation Facility which is expected to be complete by end of April. Once complete, this upgrade is expected to further enhance product quality and contribute to higher yields, to better meeting growing demand for Decibel products. Production volumes are expected to be partially impacted in mid Q2 and resuming full run-rate production by start of Q4.

Link to Decibel’s Investor Presentation

1 HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally and in BC, AB, SK, ON, November 1, 2021 – February 28, 2022. Decibel’s Major Markets consist of BC, AB, SK, ON.

2 HiFyre Retail Analytics, Premium flower and pre-roll market defined as flower products sold more than 20% above average selling price per gram.

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 business plans and strategies, including: that Decibel is well positioned to continue its revenue and market share growth, 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; counterparty risk; 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.

This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about the Company’s prospective results of operations including, without limitation, its expectation that it is well positioned to continue its revenue and market share growth. 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, the FOFI and are subject to the risks set forth above. 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 news release and, except as required by law, the Company assumes no obligation to update the forward-looking statements, FOFI or beliefs, opinions, projections, or other factors, should they change.

Decibel Announces a Third Consecutive Month of Record Market Share in January


CALGARY, ALBERTA – February 16, 2022 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to provide an update on its recent Canadian recreational market share.

“Our market share growth continues to gain momentum, driven by the superior experiences that our brands and products offer to our customers, coupled with a focus on bringing new, unique and innovative products to market” said Paul Wilson, Chief Executive Officer of Decibel. “With a strong footing established early this year, we are confident in maintaining and accelerating this pace of growth, through additional product launches, entry into new markets, and operational efficiency gains acting as catalysts to drive shareholder value this year.”

Market Share Summary

 Nov. 2021Dec. 2021Jan. 2022
Canada13.3%3.4%3.6%
Major Markets14.0%4.2%4.3%
Ontario13.1%3.1%3.2%

Market Share in Decibel’s Major Markets1

National Market Share1

Ontario Market Share1

  • Decibel’s market share has grown from 3.1% to 3.2% over the same period
    • #3 brand in premium flower & pre-roll sales with a 7.4% market share2
    • #8 brand in concentrate sales with a 4.1% market share
    • #2 brand in vape sales with a 11.4% market share

Link to Decibel’s Investor Presentation

1 HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally and in BC, AB, SK, ON, November 1, 2021 – January 31, 2022. Decibel’s Major Markets consist of BC, AB, SK, ON.

2 HiFyre Retail Analytics, Premium flower and pre-roll market defined as flower products sold more than 20% above average selling price per gram.

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 business plans and strategies, including: that Decibel is well positioned to continue its revenue and market share growth, 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; counterparty risk; 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.

This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about the Company’s prospective results of operations including, without limitation, its expectation that it is well positioned to continue its revenue and market share growth. 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, the FOFI and are subject to the risks set forth above. 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 news release and, except as required by law, the Company assumes no obligation to update the forward-looking statements, FOFI or beliefs, opinions, projections, or other factors, should they change.

Decibel Announces 2022 Financial Outlook, Strategic Priorities, and Organizational Alignment


CALGARY, AB, Jan. 31, 2022 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to provide an update on its strategic priorities and 2022 financial outlook.

Link to Decibel’s Updated Investor Presentation

Highlights
– Strong 2022 drivers now in place to generate substantial revenue and EBITDA growth.
– Anticipate achieving milestone of positive cash flow from operations in the first half of 2022.
– Driving organic growth, targeting 2022 market share growth of over 40% versus 2021.
– Canadian recreational market forecasted to grow more than 30% over prior year.
– Targeting 40 – 45% product gross margin by mid-2022.
– Organizational realignment to focus on 4 strategic priorities (See Strategic Priorities and Five-Year Outlook).


CEO Comments

Commenting on the Company’s outlook, Paul Wilson, CEO of Decibel noted the following:


“We have established a solid foundation through strong execution of our priorities in 2021 and are well positioned to execute on our 2022 objectives and achieve strong year over year growth in revenue and margins. Demand for our brands and products in the recreational market continues to exhibit strong growth, confirming our thesis that quality across category expansion, consistency, and revenue growth, will lead to creation of competitive advantages for years to come.

Our organic growth will be focused on broadening distribution of existing products, expanding with brands into core segments, launching a pipeline of new, unique, and innovative products, and operational efficiency gains from a series of investments generating substantial EBITDA improvement.

We are investing heavily in growing sales and broadening our distribution, having set Ontario in our sights as a key market for future growth. Over 2021, we’ve tripled our market share and revenues from this province and remain focused on maintaining this trend. As our horizons widen, we are looking to other eastern provinces as additional channels of growth.

We’re confident that our brands and products will continue to provide superior experiences to our customers and that our team will remain flexible to meet evolving consumer trends – and in the future, will be shaping them. We believe that our strategic plan will provide compelling organic growth, which combines further development of our competitive advantages and an attractive cannabis growth outlook.”


Strategic Priorities and Five-Year Outlook

“At Decibel’s core, we will ensure genetics, expertise, and quality remain our core competencies, such that we are flexible to meet consumer trends and produce the highest quality product in each price segment.”

The Company’s 2022 Strategic Plan priorities continue to reinforce elevating Decibel’s customers’ experiences, aggressive sales growth, differentiation of products, and organic growth potential of its cash flows, include the following:

– Continue to champion the Qwest Family of Brands as an industry-leading premium brand, which creates a “halo” extending to Decibel’s other brands and products;
– Broaden distribution and enter new markets through a multi-channel and best-in-class sales system;
– Execute on capital investments and maximizing product gross margin through a large scale transition from manual to automation driven production lines; and
– Establish and refine product differentiation and competitive advantages.


2022 Financial Outlook


The Company highlights the following financial milestones in 2022:

– Anticipate achieving milestone of positive cash flow from operations in the first half of 2022;
– Driving high double digit revenue growth through broader distribution and a new, unique, and innovative product pipeline;
– Targeting 40 – 45% product gross margin by mid-2022 through automation and other capital investments;
– Repaying its outstanding convertible debentures with low cost non-dilutive debt capital, resulting in blended cost of debt capital of less than 5%;
– Strengthening balance sheet and financial position with the expectation to reach less than 3.0x debt / trailing twelve month Adj. EBITDA in 2022; and
– Established a low cost $7.5 million accordion debt facility for future growth.


The Company’s 2022 performance drivers include:

– Expanded Decibel presence in the core price segment through the launch of General Admission jarred flower and infused pre-roll products in January;
– Launched Qwest premium infused pre-roll products in January;
– Launched early stage infused products in Ontario in January, with additional General Admission and Qwest infused products launching in early Q2;
– Optimizing yields and supply of Qwest flower and pre-rolls over the course of 2022;
– Enhancing distribution through investments in Decibel’s revenue generation system and expanding into Eastern provinces;
– Completing the majority of capital investments in the first half of 2022 which are designed to bring automation and substantial EBITDA generation to existing product lines and revenue; and
– Continued investment in quality of offerings and development of product pipeline (15 new products launching in 2022), focused on new, unique and innovative approach.

Business Updates


Organizational Changes


Decibel has identified an opportunity to be an industry-leader of new, unique and innovative products (“NUI”), shifting product development towards shaping and uncovering consumer preferences. In early 2022, the Company will be formalizing a consumer insights department, to lead this NUI initiative combined with strategic investments currently in progress. The Company’s tissue culture project will be critical, as an origination point in the R&D process, by developing new cultivars. These new cultivars, with controlled flavour and experience profiles, will allow the development of an array of products. Through the Company’s processing hub that is currently under construction, direct consumer trial and feedback will occur to identify successful flower and derivative products, through a Health Canada R&D license.

Resulting from this opportunity, the Company has made the following organizational changes in addition to the formation of a consumer insights group:

– Forming the executive positions of (i) Chief Product Development & Marketing Officer (Warren Matzelle appointed); and (ii) Chief Revenue Officer (Adam Coates title change); and
– Dissolving the executive positions of Chief Commercial Officer and Chief Compliance Officer, combining those responsibilities into existing leadership.

NUI Initiative: Infused Pre-Rolls

In November, the Company launched its first line of infused pre-rolls under General Admission in a kief coated, terpene infused format, which saw early success. Following the initial launch, Decibel has launched two additional product lines, General Admission kief coated distillate infused pre-rolls and Qwest diamond infused pre-rolls. To date, 14 infused products have been launched, with significant demand above management’s expectations between late Q4 and the start of Q1. As a result, process improvements have been made to the production line to debottleneck and substantially improve margin moving into the start of 2022.

– With the continued focus on establishing an early mover advantage within the infused category, the Company has the following opportunities to cement this position:
– Significant improvements made to production line to expand capacity to meet demand and improve cost structure moving into start of 2022.
– Product listing barriers to entry – select provinces (AB, ON) next product listing windows occur in April, providing three months to grow distribution and consumer adoption:
– 14 products launched in AB, additional 2 to launch in mid Q1;
– 2 products launched in SK, with an additional 14 to launch in mid Q1;
– 3 products launched in ON in January, with an additional 6 to launch in early Q2; and
– 1 product launched in BC, with an additional 5 launched in January.

1 HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally and in BC, AB, SK, ON, January 1 – December 31, 2021. Major Markets include BC, AB, SK, ON.
2 HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram in 7g or under size formats.  

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, Blendcraft, and General Admission, 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: that the Company has strong 2022 growth drivers in place to generate substantial revenue and EBITDA growth; anticipated cash flow in the first half of 2022; anticipated market share at the end of 2022; anticipated growth in the Canadian recreational cannabis market; the Company’s expectations that its quality of products will lead to the creation of brand equity in the future; that the Company will launch a pipeline of new, unique, and innovative products, and operational efficiency gains from a series of investments generating substantial EBITDA; the Company’s geographical expansion plans; the Company’s expectations that its brands and products will provide superior experiences to its customers; that the Company will be able to meet and shape evolving consumer trends; the Company’s expectations that its strategic plan will provide competitive advantages and attractive cannabis growth outlook; that the Company will be able to produce the highest quality of product in each price segment; the Company’s plans to broaden distribution and enter new markets, transition from manual to automation driven production lines and establish and refine product differentiation and competitive advantages; the Company’s expectations that its market share will grow; the Company’s expectations that it will have a strong 2022; the Company’s expectations that in 2022 it will generate a milestone of cash flow, repay its outstanding convertible debentures, establish a low cost $7.5 million accordion debt facility, drive high double digit revenue growth and improve its product gross margin by more than 500 basis points; that the Company will launch additional General Admission and Qwest infused products and the anticipated timing thereof; the Company’s expectations that it will optimize yields and supply of Qwest flower and pre-rolls over the course of 2022; that the Company will enhance distribution through investments in Decibel’s sales team; the anticipated timing and benefits of the Company’s capital investments; the Company’s plans to form a consumer insights department; that the Company will develop an array of new products; the Company’s anticipated product launches; and the Company’s business plans and strategies, including 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.

With respect to the forward-looking statements and FOFI (as defined below) contained in this news release, management has made assumptions regarding, among other things: its ability to execute on its business plan in a timely manner and the results thereof; capital requirements, 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; ability to access sufficient capital from internal and external sources, and/or ability 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.

This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about the Company’s prospective results of operations including, without limitation, that the Company has strong 2022 growth drivers in place to generate substantial revenue and EBITDA growth; anticipated cash flow in the first half of 2022; anticipated market share at the end of 2022; and the Company’s expectations that in 2022 it will generate a milestone of cash flow, drive high double digit revenue growth and improve its product gross margin by more than 500 basis points. 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, the FOFI and are subject to the risks set forth above. 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, except as required by law, the Company assumes no obligation to update the forward-looking statements, FOFI or beliefs, opinions, projections, or other factors, should they change.


SOURCE Decibel Cannabis Company Inc.

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

Decibel Announces Another Month of Record Market Share in December


CALGARY, ALBERTA – January 17, 2022 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to provide an update on its recent Canadian recreational market share.

“With our debt refinancing now in place, we remain on the offense, growing revenue and closing 2021 with record market share driven through our core focus to elevate our consumer experience through quality combined with new, unique and innovative products” said Paul Wilson, Chief Executive Officer of Decibel. “With a strong foundation established through efforts in 2021, and impactful 2022 catalysts, we are well positioned to continue our strong revenue and market share growth.”

 Jan. 2021Nov. 2021Dec. 2021
Canada12.6%3.3%3.4%
Major Markets13.3%4.0%4.2%
Ontario11.1%3.1%3.1%

Market Share in Decibel’s Major Markets1

National Market Share1

  • 1

Ontario Market Share1

  • Tripled market share from January to December 2021 with a record 3.1% in December
    • #2 brand in premium flower sales with a 9.0% market share2
    • #5 brand in concentrate sales with a 5.8% market share
    • #2 brand in vape sales with a 10.8% market share

Link to Decibel’s Investor Presentation

1 HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally and in BC, AB, SK, ON, January 1 – December 31, 2021. Major Markets include BC, AB, SK, ON.

2 HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram in 7g or under size formats.

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 business plans and strategies, including 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; counterparty risk; 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.

This news release also contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about the Company’s prospective results of operations including, without limitation, its expectation that it is well positioned to continue its revenue and market share growth. 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, the FOFI and are subject to the risks set forth above. 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, except as required by law, the Company assumes no obligation to update the forward-looking statements, FOFI or beliefs, opinions, projections, or other factors, should they change.

Decibel Announces $54 Million Debt Refinancing with connectFirst, Increasing its Access to Debt by $20 Million


CALGARY, ALBERTA – January 14, 2022 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to announce that it has entered into an amended and restated commitment letter with connectFirst Credit Union Ltd. (“connectFirst”) in respect of $54 million of debt capital (the “Committed Amount”) over an initial 5-year term. The Committed Amount is comprised of $40.5 million of term debt (the “Term Debt”), a $6.0 million authorized overdraft secured against government receivables (the “Authorized Overdraft”), and an accordion line of $7.5 million (the “Accordion Line” and collectively, the “Credit Facilities”).

The Company expects the proceeds combined with contributions from operations to provide sufficient liquidity to repay Decibel’s convertible debentures on maturity.

“With this refinancing, Decibel has added financial flexibility to optimize its capital structure and is well positioned to continue to execute its aggressive growth strategy” said Stuart Boucher, Chief Financial Officer of Decibel. “This transaction reflects the strong position Decibel has established in the Canadian cannabis market and the continued confidence from connectFirst and our team in the execution of the Company’s strategic plan”.

Financing Highlights

  • The Company’s existing term debt will be increased by $12 million to $40.5 million, amortized over 12-years. The $12 million term debt will be accessible on request by Decibel. The Company expects the proceeds combined with contributions from operations to provide sufficient liquidity to repay Decibel’s convertible debentures on maturity.
  • The Credit Facilities include a $7.5 million accordion to support future growth initiatives as Decibel continues to scale. The Accordion Line’s initial availability is subject to Decibel achieving a trailing twelve month funded debt to EBITDA ratio of less than or equal to 4.00:1, as well as its maintained compliance with its other financial covenants (as further described below).
  • Decibel continues to receive industry leading interest rates that reflect the strength of its business:
Term Debt$40.5 million4.75% (5yr Fixed)
Authorized Overdraft$6.0 millionPrime + 1.00%
Accordion$7.5 millionPrime + 2.00%
  • The Credit Facilities will have one annually tested financial covenant, a debt to equity ratio of less than 1.00:1. Additionally, the Credit Facilities will have one quarterly tested covenant, a debt service coverage ratio of not less than 1.40:1, and a monthly current ratio covenant of not less than 1.25:1. Decibel’s 12-month forecast projects compliance with all financial covenants.

The Company expects to close on the Committed Amount on or before January 31, 2022,  subject to compliance with financial covenants based on its 2021 draft annual financial results and satisfaction of other customary conditions precedent. Decibel expects to remain in compliance for the remainder of its twelve-month forecast period, as well as the 2021 annual covenants.

Link to Decibel’s Investor Presentation

About connectFirst Credit Union

connectFirst Credit Union, one of the largest and most successful credit unions in Canada, is a full-service financial institution with over $6 billion in assets under administration. connectFirst employs 750 Albertans who provide a range of financial products and advice in more than 40 communities across central and southern Alberta. It serves over 125,000 members through a community-focused approach to banking.

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 and Future Oriented Financial 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 business plans and strategies, including: the Company’s anticipated use of the funds obtained pursuant to the Credit Facilities; the anticipated closing date; the Company’s expectations that it will be able to comply with all of its financial covenants for the next twelve months; and 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 the satisfaction of the conditions precedent to obtaining the additional Term Debt; 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; 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.

This press release also contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about the Company’s prospective results of operations including, without limitation, its anticipated liquidity and ability to repay its convertible debentures on maturity. 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, the FOFI. 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, except as required by law, the Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change.

Decibel Announces Record Market Share in November and General Admission Brand Entering the Top 10 Largest Brands in Canada


CALGARY, ALBERTA – December 7, 2021 – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to provide an update on its recent Canadian recreational market share and brand performance.

“We continue to capture additional market share and execute against our strategic plan by developing strength within our brand portfolio, creating industry-leading product quality and innovation” said Paul Wilson, Chief Executive Officer of Decibel. “As we navigate a period of complexity within global and regional supply chains, we remain on track to close out 2021 with strong momentum and the realization of our 2021 growth initiatives.”

National Market Share1

  • #8 largest LP by Canadian recreational market share, with a record 3.3% in November
  • The Canadian recreational market has grown from approximately $279 million to $330 million from January to November 2021
    • Decibel’s market share has grown from 2.6% to 3.3% over the same period
  • #10 largest brand (General Admission) by Canadian recreational market share, with a record 2.1% in November

Market Share in Decibel’s Major Markets1

  • #8 largest LP by recreational market share, with a record 4.0% in November
    • #2 brand in premium flower sales with a 11.0% market share2
    • #2 brand in concentrate sales with a 9.5% market share
    • #2 brand in vape sales with a 13.8% market share

Ontario Market Share1

  • #8 largest LP by recreational market share, with a record 3.1% in November
    • #1 brand in premium flower sales with a 9.2% market share2
    • #4 brand in concentrate sales with a 6.7% market share
    • #2 brand in vape sales with a 10.4% market share

Link to Decibel’s Investor Presentation

HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally and in BC, AB, SK, ON, November 1 – November 30, 2021. Major Markets include BC, AB, SK, ON.
HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram in 7g or under size formats.

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

www.decibelcc.com

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 business plans and strategies, including 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.

These forward-looking statements are made as of the date of this press release and, except as required by law, the Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change.

Decibel Announces Third Quarter Results with Strong Net Revenue Growth and Re-Appointment of Director


CALGARY, ALBERTA – November 18, 2021 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to announce its third quarter financial results for the three month period ending September 30, 2021.

“Decibel’s continued growth is a testament to our consumer focused approach, the strength of our brands, and our dedication towards producing high quality products for our customers”, said Paul Wilson, CEO of Decibel. “We are closing out 2021 with strong momentum as we launch 40 new products, elevate the experience our products create for consumers, and innovate to meet cannabis consumers’ evolving preferences.”

Market Share

  • #9 largest LP by Canadian recreational market share, with 3.1% in September

Strong market share across BC, AB, SK, ON in September 20212,3:

  • #2 brand in premium flower sales with a 9.0% market share
    • #2 brand in concentrate sales with a 12.9% market share
    • #3 brand in vape sales with a 12.9% market share

Key Financial Highlights

  • Net Revenue: Net revenue was $13.4 million in Q3, a 7% increase over the prior quarter, driven by growth in Decibel’s existing and newly launched flower, vape and concentrate products. Net revenue grew by 76% over the comparative 2020 quarter.
  • Flower Sales: 492 kilograms sold in Q3, with an average wholesale net price per gram of $7.65, an increase of 10% in kilograms sold and a decrease of 4% in average wholesale net price per gram, over the prior quarter. The decline in price per gram was a result of a greater volume allocation towards Qwest products versus Qwest Reserve products which achieves a higher price point and the launch of General Admission line of pre-rolls.
  • Derivative Sales: $6.6 million of net sales of vape and concentrate products in Q3, a 16% increase from the prior quarter. Sales growth was driven by increased demand for vape and concentrate products launched within Q3 and growth in Ontario demand as the province re-opened brick & mortar cannabis retail.
  • Retail Sales: $3.0 million of retail sales, a 5% decline over the prior quarter, primarily driven by new entrants into the Saskatchewan retail market, partially offset by Alberta retail sales growth.
  • Gross Profit: The Company achieved $4.1 million of gross profit before fair value adjustments, a decline of 20% from Q2 2021 and improvement of 42% over the prior year. Gross profit was impacted by a provision of $922 thousand, pertaining to the Plant inventory write offs. The inventory provision is primarily related to the write-off of unusable hardware, packaging materials, and various items related to discontinued products, as well as inventory held to satisfy an aged supply agreement that was mutually terminated.
  • Positive Adj. EBITDA: The Company achieved $1.8 million of adjusted EBITDA in Q3, its fifth consecutive quarter of positive adjusted EBITDA. This represented a decline of 17% from the prior quarter and improvement of 107% from the prior year. For the trailing twelve months, the Company has achieved $7.1 million in adjusted EBITDA.
  • Thunderchild Operational Development: The Company continues to invest in working capitalas it ramps the facilityand achieved run-rate harvests in mid-Q3. The Company anticipates run rate production by mid-Q4 at which point focus will be directed towards operational efficiency in post processing.
  • Product Innovation Roll-Out: In Q3 2021, Decibel introduced another six new product SKUs in addition to its rotational cultivar based products, ending with 57 products in market.
  • Generated approximately $182 thousand in net revenue per SKU in Q3, compared to $181 thousand in net revenue per product in the prior quarter.
  • Announced the launch of 40 new product SKUs between September 2021 and January 2022, including:
  • 12 new flower & pre-roll products that will replace existing cultivars in market.
  • 28 incremental new flower & derivative products.
  • Strengthened Balance Sheet: On September 16, 2021, the Company closed its bought deal prospectus offering with gross proceeds of $15 million The additional capital will accelerate Decibel’s strategic plan through previously announced capital projects and a series of new product launches (See Decibel’s Investor Presentation for further information). Net cash on the balance sheet as at September 30, 2021 was $11.3 million.

Quarterly Highlights

Link to Decibel’s Investor Presentation

Decibel’s financial statements for the three-month period ending September 30, 2021 (“FinancialStatements”) 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, 2021, 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.  

1 Adjusted EBITDA is a non-GAAP performance measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” for further details.

2 HiFyre Retail Analytics, Licensed Producer Sales over Time in BC, AB, SK, ON, September 1 – September 30, 2021

3 HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram

Appointment of New Director

On November 17, 2021, Dr. Ivan Casselman was re-appointed to the Corporation’s board of directors. Dr. Casselman brings a wealth of product and industry knowledge through his industry experience as an analytical chemist and plant medicine researcher, and his current roles as the Chief Psychedelic Officer at Havn. Dr. Casselman additionally holds a Master of Science in Ethnobotany and a Doctorate (Ph.d.) in Plant Science (analytical chemistry and genetics). Dr. Casselman was previously appointed to the board on November 24, 2020 but had been serving as a senior advisor since January 29, 2021 while awaiting his most recently granted Health Canada security clearance.

“Appointing Dr. Casselman to Decibel’s board of directors is a great step in the evolution of the Corporation’s governance and board composition” said Cody Church, the Chairman of Decibel’s board of directors. “Dr. Casselman brings an extensive amount of experience and knowledge within the sector and adds a level of product and industry knowledge that will naturally compliment Decibel’s current board of directors.”

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 six months ended September 30, 2021. 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 anticipated launch of products, the impact of additional capital on Decibel’s strategic plan through previously announced capital projects and a series of new product launches; Decibel’s expectation that it will remain in compliance with its financial covenants for the remainder of its twelve-month forecast period; 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.

Decibel Announces Launch Into New Product Category, Infused Pre-Rolls


CALGARY, ALBERTA – November 10, 2021 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to announce the first shipment of its newest product line, infused pre-rolls, under its General Admission brand. In the past three months, the General Admission brand has become the second largest vape brand in Canada by retail sales1. These products will be available for licensed retailers in Alberta first, with shipments to BC and Saskatchewan in November and Ontario in January.

Decibel plans to launch three additional series & types of infused pre-rolls over the next three months under both the General Admission and Qwest brands in the largest markets in Canada.

“We are incredibly excited to launch the first series of our infused pre-rolls under the General Admission brand” said Warren Matzelle, Decibel Sr. Vice President of Innovation & Retail. “This brand extension of the 2nd ranked vape brand in Canada, brings together the potency and flavours consumers love in our General Admission vapes in a convenient and innovative pre-roll format.”

Terpene Infused, Kief Coated Pre-Rolls

The first line of Decibel’s infused pre-rolls is the General Admission terpene infused, kief coated pre-rolls in 1x1g and 3×0.5g size formats. The terpene infused pre-roll line comes in 3 flavours, mirroring the most popular General Admission vapes:

  • in two SKUs 1x1g & 3×0.5g
  • in two SKUs 1x1g and 3×0.5g
  • in one SKU 3×0.5g

Infused Pre-Roll Category

The infused pre-roll category has shown significant growth in established cannabis markets in the US and Decibel anticipates the category to accelerate the growth of the concentrate and pre-roll categories in Canada.

Link to Decibel’s Investor Presentation

1 HiFyre Retail Analytics, Licensed Producer Sales, Category Sales over Time in Canada; August 1 – October 31, 2021

2 Headset, Category Details, Pre-Roll, Category Sales over Time in California; November 1, 2020 – October 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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 business plans and strategies, anticipated product launches, including the timing, location and availability of the same and 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.

These forward-looking statements are made as of the date of this press release and, except as required by law, the Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change.

Decibel to Announce Third Quarter Results on November 18


CALGARY, ALBERTA – November 1, 2021 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to announce the Company will release its 2021 third quarter financial results and related management discussion and analysis on November 18, 2021 before markets open.

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.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

403-226-2555

www.decibelcc.com

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.

Decibel Announces the Launch of 6 New Products Including Two New Cultivars From Thunderchild Cultivation Facility


CALGARY, ALBERTA – October 21, 2021 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to announce 6 new products available for retailers in Ontario today, including two new flower cultivars.

“We are incredibly excited to launch 6 new products for our retail partners in Ontario and consumers to enjoy” said Paul Wilson, Decibel CEO.” This is the start of the roll out of our much anticipated new set of cultivars launching in Ontario, British Columbia, Alberta and Saskatchewan over the next 6 weeks.  With the ramp up of our Thunderchild Cultivation facility in full effect we are bringing meaningful innovation and variety in dried flower and derivative products for retailers and consumers.”

Flower

With all of Decibel’s flower and pre-roll cultivar offerings now fully listed in all its major markets, these new cultivar launches are the start of Decibel’s full product rotational strategy. Alongside listing objectives now being complete, the Thunderchild Cultivation facility has achieved run-rate production while maintaining Qwest’s high-quality standards, and strongly positions Decibel’s flower strategy with enough volume to meet demand as additional cultivars are being introduced over the coming weeks.

Decibel’s two new cultivar drops in Ontario from the Thunderchild Cultivation facility:

  • jarred flower (Papaya x Wedding Cake) with 29.1% THC
    • pre-rolls (Papaya x Wedding Cake) with 25.7% THC
    • jarred flower (Banana x OG Kush x Trophy Wife) with 29.7% THC

Papaya Cake and Banana OG are available for licensed Ontario retailers to order today and will be available for consumers to purchase next week at their local licensed retailer or on OCS.ca. These cultivars will become available in British Columbia, Alberta and Saskatchewan in November.

Derivatives

The Company continues to drive innovation and execute its premiumization strategy with vape and concentrate offerings, now launching its first solventless product in market under Pressed by Qwest. In addition to this new product format, Decibel is launching a new flavour of its distillate vape line up and expanding its Kootenay Fruit live resin vape distribution into Ontario, which has seen strong demand in Western Canada.

  • Sunset MAC solventless cold cured rosin with 84.3% total cannabinoids and 12.4% total terpenes
  • Strawnana distillate vape in two size formats
  • Kootenay Fruit live resin vape in a trial size, 0.45g format

These General Admission and Pressed by Qwest products are available for licensed Ontario retailers to order today and will be available for consumers to purchase next week at their local licensed retailer or on OCS.ca. They will be available for Alberta retailers to order this Friday, October 22nd from the AGLC.

Link to Decibel’s Investor Presentation

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, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

For More Information

Contact: Stuart Boucher

stuart.boucher@decibelcc.com

780-619-0310

www.decibelcc.com

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 business plans and strategies, anticipated product launches, including the timing and location of the same and 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.

These forward-looking statements are made as of the date of this press release and, except as required by law, the Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change.