Category: News Releases

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

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:

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.

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, 525-8^th 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:

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.

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.

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

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.

With the receipt of the sales amendment, Decibel is able to sell flower and derivative cannabis products to provincial wholesalers and retailers

CALGARY, AB, July 13, 2020 /CNW/ – Decibel Cannabis Company Inc.  (the "Company" or "Decibel") (TSXV: DB) is pleased to announce that its wholly owned subsidiary, Westleaf Labs LP, has received a sales amendment from Health Canada at its extraction and manufacturing facility, The Plant, located in Calgary, Alberta. The receipt of the sales amendment marks a key milestone for the Company as a fully vertically integrated cannabis business, with the ability to manufacture and sell dried cannabis, cannabis extracts and edible cannabis, as finished packaged products, to provincial wholesalers and retailers.

"The ability to manufacture and sell cannabis 2.0 products, in addition to our dried flower, enables Decibel to establish a new revenue stream by expanding production into high margin derivative products," said Benjamin Sze, CEO of Decibel. "Within the Qwest brand portfolio, we are able to meet the consumer’s ever evolving needs while giving priority placement of these products at our retail stores, Prairie Records."

"Our brand portfolio contains three clearly defined brands – Blendcraft by Qwest, Qwest, and Qwest Reserve" said Adam Coates, Chief Growth Officer of Decibel. "These brands offer consumers a range of products and price points that are tailored to fit the different life occasions where they indulge in cannabis. At every level of our business, we’re committed to delivering high quality products and experiences "Beyond the Ordinary".

Qwest Product Strategy

The sales amendment unlocks the potential of Decibel’s brands (Blendcraft by Qwest, Qwest and Qwest Reserve) and allows the Company to:

• continue to launch trendsetting strains that deliver on THC and terpenes (our latest launches include Kush Mints at 31% THC, MAC1 at 28% THC, Point Break at 25% THC and Pineapple Cake at 24% THC);
• produce derivative cannabis products focused on the concentrates category, which Decibel anticipates will start with launches of wax and shatter SKUs;
• develop cannabis 2.0 product formats that highlight the most desirable and potent plant characteristics, replicating the experience Qwest dried flower is known for;
• utilize high quality input material, rich in THC and terpenes, from Qwest harvests enabling superior end-product quality and increased efficiency yields in extracted products; and
• further expand its supply chain flexibility through The Plant’s ability to now package and sell dried flower for Decibel’s cultivation production house in Creston, BC and, once licensed by Health Canada, Thunderchild Cultivation in Battleford, SK.

About Decibel Cannabis Company

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 five 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 by Qwest, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements

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 establish a new revenue stream and expand production into high margin derivative products, the Company’s ability to expand its supply chain flexibility, the Company’s ability to develop new cannabis 2.0 product formats and the various elements and anticipated results of its Qwest product strategy, 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 and the Company’s ability to execute on the foregoing. 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 additional timing, 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 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 TSXV, 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.

CALGARY, AB, June 23, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSX-V: DB) (OTCQB: DBCCF) today announced that it will grant, effective June 24, 2020, an aggregate of 16,752,103 stock options (each, an "Option") to certain directors, officers and employees of the Company in accordance with the Company’s shareholder approved stock option plan. Each Option is exercisable into one common share in the capital of the Company (each, a "Share") at a price of $0.09 per Share, being the closing price of the Shares on the TSX Venture Exchange on June 23, 2020. This is a normal-course grant that comprises part of the long-term compensation and employee retention incentives provided by the Company. The Options will vest in equal installments on January 1, 2021, January 1, 2022 and January 1, 2023 and will expire on January 1, 2024.  The Options represent the first long-term compensation incentive grant to Decibel’s directors, officers and employees following the integration of We Grow B.C. Ltd. ("We Grow") and Westleaf Inc. ("Westleaf") in December of 2019.

Benjamin Sze, CEO of Decibel noted "this represents an important final step in the integration of We Grow and Westleaf and aligns our team for the future success of Decibel."

Following the issuance of the Options, the Company’s basic and fully diluted share balances now total 347,979,373 and 420,981,279 respectively.

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

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, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats and the Company’s ability to execute on the foregoing. 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: additional timing, 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; 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.

CALGARY, AB, June 19, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF) is pleased to announce its first quarter financial results for the three-month period ending March 31, 2020. Decibel’s financial statements for the three-month period ending March 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.

"During the first quarter of 2020, we made significant steps towards completing integration and cost saving initiatives, while continuing to progress our large-scale development projects. Although our targeted cost structure is not fully reflected in this quarter’s financial results, early impacts of our efforts are starting to be realized," said Benjamin Sze, CEO of Decibel. "We expect to continue to see cost reductions and growth as we operationalize our extraction & manufacturing facility and capture further production efficiencies at our Creston facility."

The first quarter of 2020 reflects the Company’s first period that recognizes full quarter results of the consolidated entity resulting from the plan of arrangement (the "Arrangement") that was completed by We Grow BC Ltd. on December 19, 2020, resulting in a reverse takeover of Westleaf Inc.

Investor Highlights 

• Total net revenue for the first quarter of $5.0 million, a $4.5 million increase over the comparative period
• Sold 224 kilograms of cannabis in the first quarter achieving an average wholesale flower gross price per gram of $11.85
• Adjusted EBITDA loss for the first quarter of $0.4 million

Q1 2020 Financial Highlights and Subsequent Events

• Total net revenue grew tenfold in the first quarter to $5.0 million over the first quarter of 2019, driven by execution on the strategic plan resulting from the Arrangement, continued strong demand for Qwest products, and increases in wholesale pricing.
• Kilograms sold increased ~280% in the first quarter to 224 kilograms, achieving an average wholesale flower gross price per gram of $11.85 for the period, reflecting best-in-class pricing attributable to the Company’s strategic focus on rare genetics and premium quality cannabis.
• During the first quarter of 2020, Decibel executed cost-reduction measures and realized on synergies resulting from the Arrangement, resulting in an estimated combined cost savings exceeding $5 million, net of severance costs, through the 2020 fiscal year compared to 2019.
• Adjusted EBITDA loss for the first quarter of $0.4 million increased over the first quarter of 2019, primarily from selling, general and administration costs increasing from the Arrangement, partially offset by significant revenue growth and production efficiencies leading to an improved gross margin.
• Subsequent to the first quarter of 2020, Decibel entered into an agreement to amend its credit agreement with ATB Financial on May 22, 2020. 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. For more information please refer to Decibel’s MD&A for the three months ended March 31, 2020, including to "Liquidity and Capital Resources".

While the pandemic continues to have a significant impact on the economy, the Decibel team has reacted quickly and successfully implemented a pandemic response plan, altering its operating procedures in its facilities and retail locations to address the current risks of COVID-19. We are pleased that the Decibel team has remained safe, productive, and is continuing to deliver high quality cannabis products and retail experiences. 

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 costs reductions and growth as it operationalizes its extraction & manufacturing facility, the Company’s expectations regarding its ability to capture further production efficiencies at the Creston Facility, 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, 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 and the Company’s ability to execute on the foregoing. 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 Company’s ability to file the Interim Filings, additional timing, 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 TSXV, 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.

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 March 31, 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 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.

SOURCE Decibel Cannabis Company Inc.

CALGARY, May 25, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSX-V:DB) (OTCQB:DBCCF) announces its year-end and fourth quarter financial results for 2019 and provides an update to the anticipated filing date of its Q1 2020 results. The Company is also pleased to announce that it has entered into an agreement with its lender ATB Financial ("ATB") to amend its credit agreement.

As a result of the previously announced Arrangement (as defined herein) completed on December 20, 2019 (the "Closing Date"), the historical financial results of Decibel for the period ending December 31, 2019 relate solely to We Grow BC Ltd. ("We Grow") up to and including the Closing Date. Following the Closing Date the financial information of Decibel relates to that of the consolidated company. As a result, the 2019 financial results reflect eleven days of net revenue and operational activity from operating assets acquired from Westleaf Inc. ("Westleaf") in the Arrangement.

2019 Financial Highlights and Subsequent Events

• Net revenue for the fourth quarter and year-end of $1.5 and $6.2 million, respectively, primarily relating to sales from the Company’s Creston facility.
• Adjusted EBITDA loss for the fourth quarter and year-end of $1.6 and $1.8 million, respectively.
• Net loss for the fourth quarter and year-end of $6.0 and $6.5 million, respectively.
• Sold 177 kilograms of cannabis in the fourth quarter and 731 kilograms of cannabis during the fiscal year achieving gross price per gram of $11.44 for the period. Sales volumes in the fourth quarter of 2019 were impacted by a Health Canada quality assurance hold on 190 kilograms that was subsequently lifted on January 14, 2020 and sold in Q1 2020.
• On December 20, 2019, We Grow completed a plan of arrangement (the "Arrangement") which constituted a reverse takeover of Westleaf to combine We Grow’s cultivation facility and premium brand, Qwest, with Westleaf’s high quality cultivation, extraction, and retail assets to create one of Canada’s preeminent ultra-premium cannabis companies.
• Executed several cost-reduction measures and realized synergies resulting from the Arrangement, resulting in an estimated cost savings exceeding $5 million through the 2020 fiscal year compared to 2019. These initiatives have included a ~35% reduction in corporate staff, a 68% reduction of its lease portfolio and broad elimination all non-essential spending.
• Secures credit facility amendments to provide additional financial flexibility.

Fiscal year 2019 represents the Company’s first full year of sales from its Creston facility. During the period, revenue performance was positively affected by the launch of new cannabis strains and an expanded distribution footprint that includes British Columbia, Alberta, Ontario, Saskatchewan and Prince Edward Island. In the fiscal year 2019, the Company achieved construction milestones including the completion of construction and the receipt of a standard processing licence for its extraction and manufacturing facility. Management anticipates that its operational assets and facilities under development will allow the Company to increase sales volumes, expand into cannabis derivative products, and ultimately execute on its premium strategy. To date, Decibel’s premium strategy has resulted in achieving one of the highest gross prices per gram in the Canadian recreational market of $11.44 for the year ended December 31, 2019.

Decibel’s year-end Financial Statements and related Management Discussion & Analysis for the reporting period are available under the Company’s profile at www.sedar.com.

Credit Facility Amendment

Decibel is pleased to announce that on May 22, 2020, the Company entered into an agreement to amend its credit agreement with ATB. 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. Among other things, the amendments include an amendment to Decibel’s tested financial covenants and to certain licensing milestones. Additionally, the amendment provides for a $2.2 million reduction of the borrowing base availability under the facility. For more information please refer to Decibel’s management’s discussion and analysis for the year ended December 31, 2019, including to "Liquidity and Capital Resources".

Stuart Boucher, Decibel’s interim CFO, stated: "Decibel appreciates ATB’s commitment to and understanding of the Company’s business strategy and believes that the amendments will allow the Company to meet its near-term objectives."

Q1 2020 Interim Filing Extension

The Company also announces today that it is extending the filing deadline of its Q1 2020 interim financial statements and related management discussion and analysis for the fiscal quarter ended March 31, 2020 (collectively, the "Interim Filings"). Decibel anticipates that it will be able to complete the Interim Filings no later than July 10, 2020.

Recent proclamations and guidance from Canadian health authorities, the City of Calgary and the Province of Alberta and challenges resulting from the COVID-19 pandemic, have required the Company to coordinate the preparation of the Interim Filings remotely. As a result, the preparation of the Interim Filings has been delayed.

According to Blanket Order 51-517 issued by the Alberta Securities Commission on March 23, 2020 (the "Blanket Order"), during the period from March 23, 2020 to June 1, 2020, a person or company required to make certain filings has an additional 45 days from the otherwise applicable deadline to make such filings. The Company is relying on the Blanket Order for temporary relief from the requirements set out in Part 4 and Part 5 of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102"), to file the Interim Filings by the applicable deadlines set forth in NI 51-102.

All of the Company’s management, directors and other insiders will remain subject to its share trading and black-out policy which reflects the principles set out in section 9 of National Policy 11-207: Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.

There have been no material developments in the business of the Company, other than those disclosed in this press release and in the Company’s year-end report and related management discussion and analysis.

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.

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS ("Non-GAAP Measures"). 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 year ended December 31, 2019. 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 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, these Non-GAAP Measures are 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.

Cautionary Statements

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 operational assets and facilities under development, the Company’s timing of the filing of the Interim Filings, 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, 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 and the Company’s ability to execute on the foregoing. 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 Company’s ability to file the Interim Filings, additional timing, 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 TSXV, 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.

CALGARY, April 27, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSX-V:DB) (OTCQB:DBCCF) announces that it will delay the filing of its audited financial statements and related management’s discussion and analysis for the fiscal year ended December 31, 2019 (collectively, the "Annual Filings").

Recent proclamations and guidance from Canadian health authorities, the city of Calgary and the province of Alberta and challenges resulting from the COVID-19 pandemic, have required the Company and its auditors to coordinate the preparation of the Annual Filings remotely. As a result, the completion of audit procedures as well as of the preparation of the Annual Filings as a whole have been delayed.

According to Blanket Order 51-517 issued by the Alberta Securities Commission on March 23, 2020 (the "Blanket Order"), during the period from March 23, 2020 to June 1, 2020, a person or company required to make certain filings has an additional 45 days from the otherwise applicable deadline to make such filings. The Company is relying on the Blanket Order for temporary relief from the requirements set out in Part 4 and Part 5 of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102"), to file the Annual Filings by the applicable deadlines set forth in NI 51-102. 

All of the Company’s management, directors and other insiders will remain subject to its share trading and black-out policy which reflects the principles set out in section 9 of National Policy 11-207: Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.

Decibel anticipates that it will be able to complete the Annual Filings no later than May 29, 2020.

Since the Company announced its latest interim financial report on November 28, 2019, the following material business developments have been previously disclosed by Decibel (collectively the "Disclosed Developments"):

The Disclosed Developments were disclosed in the Company’s public filings, which are available on the Company’s website at https://decibelcannabis.test/news/ and on its SEDAR profile at www.sedar.com.

In addition to the Disclosed Developments, based on its unaudited draft financial statements, the Company was in compliance, as at December 31, 2019, with all financial covenants contained in its credit facility (the "Credit Facility") with ATB Financial ("ATB"). Based on draft financial statements for the three months ended March 31, 2020, and out of an abundance of caution, the Company has entered into proactive discussions with ATB to ensure that applicable measures are in place in the event that the Company determines that it was not in compliance with any such covenant for the quarter end. The Company is optimistic that, if necessary, such discussions would be successful and covenant relief would be granted on a temporary basis. There is however, no certainty that any agreement will be reached nor that any covenant relief will be provided.

The Company is pleased to announce, one of its retail subsidiaries received its license from the Alberta Gaming, Liquor and Cannabis for its second Prairie Records branded retail store in Alberta. The Store is located at 8623-112 St NW, Edmonton, AB and is anticipated to be open to the public within the first two weeks of May.

Finally, the Company also announces today that Taylor Ethans, Chief Financial Officer and Co-Founder, has resigned from his position as Chief Financial Officer of Decibel effective May 4, 2020.

"Taylor co-founded Decibel and led from the position of Chief Financial Officer since inception. On behalf of the entire Company, we would like to thank Taylor for his leadership, hard work and commitment to Decibel" said Cody Church, Chairman of the Board of Decibel. "We wish Taylor nothing but continued success in his future endeavors."

The Company has appointed Stuart Boucher as interim Chief Financial Officer, effective May 4, 2020, and has initiated a search process to determine and appoint a permanent Chief Financial Officer. Prior to joining Decibel, Mr. Boucher worked in investment banking for BMO Capital Markets in their Global Energy group, focusing on public equity, debt offerings, and M&A advisory, exclusively in the Power & Energy Infrastructure industry. He holds a Bachelor of Commerce, with a major in Finance from the University of Alberta and was the second employee of Decibel, serving most recently as the Company’s Director of Corporate Development and Strategy. Mr. Boucher was instrumental in the merger with We Grow BC Ltd. and following the transaction has led the Company through numerous stringent cost-cutting activities and strategies.

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

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 timing of the filing of the Annual Filings, the Company’s compliance with the financial covenants contained in its credit agreement, the timing of and results of discussions and negotiations with ATB and the certainty of reaching any agreement with ATB, the opening of its recently licensed Prairie Record, 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 and the Company’s ability to execute on the foregoing. 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 Company’s ability to file the Annual Filings, additional timing, 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 TSXV, 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.

CALGARY, April 14, 2020 /CNW/ – Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSX-V:DB) (OTCQB:DBCCF) announces licensing developments at its Thunderchild Cultivation facility and The Plant extraction facility along with a general business update. The Company is actively working to mitigate the risk of disruption to its operations, due to COVID-19, with a focus on supporting the communities it operates in and providing a safe working environment for its employees and customers, all while continuing to progress its strategic plan.

"The Decibel team is working hard to continue to safely and efficiently produce our products, stay open for our customers, provide employment and support the communities in which we operate" said Benjamin Sze, CEO of Decibel. "Despite the challenges our country is facing during these unprecedented times, I am proud of the excellent progress we have made for our employees, customers and shareholders."

The Qwest Estate and Prairie Records

Decibel’s Qwest Estate cultivation facility in Creston, BC and Prairie Records retail stores in Saskatchewan and Alberta, remain fully operational with enhanced protective measures in place to prioritize employee and customer safety.  Additionally, Decibel continues to make excellent progress on the development and licensing of its University of Alberta and Palace Theatre cannabis retail stores, which are expected to be completed and licensed in May 2020.

Thunderchild Cultivation Facility

On April 13, 2020, dB Thunderchild Cultivation LP, a subsidiary of Decibel, submitted a complete site evidence package to Health Canada in connection with its application for a cultivation licence for its Thunderchild Cultivation facility, in Battleford, Saskatchewan.

The Plant Extraction & Manufacturing Facility

On March 30, 2020, Decibel’s subsidiary Westleaf Labs LP, submitted a sales licence amendment application for the sale of dried cannabis products and cannabis extract products produced at The Plant, its extraction and manufacturing facility located in Calgary, Alberta. The Plant remains active and is currently being used to perform co-packing services for a related party, while commissioning equipment and advancing product development initiatives.

Blendcraft by Qwest Launch

Blendcraft by Qwest ("Blendcraft") is Decibel’s introduction of premium blended pre-rolls into the Canadian market and widens Decibel’s offerings of Qwest products to new consumers who may be experiencing high-end cannabis for the first time. The launch of Blendcraft allows for Decibel to unlock the full value of its harvests while preserving its top end wholesale pricing.  Decibel successfully launched Blendcraft in March 2020 and has achieved listings with BC, Alberta, Saskatchewan and Ontario.

Qwest Products Registered in Manitoba

Decibel is pleased to announce it has agreed to terms with Manitoba Liquor & Lotteries to supply Qwest branded flower and pre-rolls to Manitoba retailers.   The first shipment to Manitoba retailers is on track to be delivered in April. Qwest products are now registered for sale in six provinces.

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 TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements

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 development of new products, the timing, construction and licensing of Decibel’s University of Alberta and Palace Theater cannabis retail stores, the timing of Decibel’s first shipment of Qwest products to Manitoba retailers, 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 and the Company’s ability to execute on the foregoing. 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 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 TSXV, 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.