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Formerly Westleaf Inc.

Decibel Cannabis Company Inc. Announces $10 Million Bought Deal Unit Offering


CALGARY, Alberta, Aug. 26, 2021 (GLOBE NEWSWIRE) — Decibel Cannabis Company Inc. (“Decibel” or the “Company”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce that it has entered into an agreement pursuant to which Eight Capital, Haywood Securities Inc. and Raymond James Ltd., as co-lead underwriters and joint bookrunners (collectively, the “Underwriters”), will purchase 34,500,000 units of the Company (the “Units”), on a “bought deal” basis pursuant to the filing of a short form prospectus, subject to all required regulatory approvals, at a price per Unit of $0.29 (the “Issue Price”) for gross proceeds of $10,005,000 (the “Offering”). 

Each Unit shall be comprised of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one Share at an exercise price of $0.40 for a period of 36 months following the closing date of the Offering.

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, and/or the components thereof, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this over-allotment option is exercised in full, approximately $1,500,750 of additional gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be approximately $11,500,000.

The Company intends to use the net proceeds of the Offering for growth initiatives, working capital and general corporate purposes.

The closing date of the Offering is scheduled to be on or about September 16, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

About Decibel

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

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

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

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

SOURCE Decibel Cannabis Company Inc.

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

Decibel Announces Second Quarter Results with Strong Revenue and Fourth Consecutive Quarter of Record Adj. EBITDA


CALGARY, AB, Aug. 16, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce its second quarter financial results for the three month period ending June 30, 2021.

The Company achieved net revenue of $12.4 million with strong gross margins of 41% and a record adj. EBITDA of $2.1 million, its fourth consecutive quarter of positive adj. EBITDA. 

“Decibel’s tremendous first half results are a testament to the strength of our brands, ability to innovate and our exceptional team”, said Paul Wilson, CEO of Decibel. “We continue to build a solid foundation by creating meaningful brands, high quality products and executing against our aggressive strategic plan.”

Management Commentary

In the first half of 2021, provincial distributors decreased their inventory levels, and, in some provinces, cannabis retail in-store shopping was restricted. This caused Qwest products to be out of stock for a cumulative 7 weeks. During this time, we enhanced production and our cost structure across our assets to expand gross margin and tailored an innovative product pipeline for the second half of 2021.

In the month of June, following the relaxation of COVID related restrictions and store re-openings, we experienced record level sales. In July, we saw a surge in demand for Decibel products and as a result, we have accelerated investment in our facilities to debottleneck and streamline production to meet these new levels. 

With the resumption of Ontario’s retail store roll-out, we have invested heavily in our sales team to increase our presence in the province. We expect that our sales team’s strong performance in western provinces (which kept retail stores open) will carry into the Ontario cannabis market and the team has seen early success with our recent product rollouts.

We are confident in our strategy centered around creating industry leading quality and choice to meet the needs of today’s cannabis consumer. With the strength in our multiple brands, we remain focused on driving innovation and bolstering our product offerings through our 2.0 pipeline and Thunderchild Cultivation flower production ramp up.

Key Financial Highlights

  • Net Revenue: Net revenue was $12.4 million in the second quarter, a 1% decrease over the prior quarter, driven by strong product sales across a number of categories but offset by stock-outs that totaled 7 weeks in the quarter, supply chain disruption given COVID and delayed or reduced purchase orders as a result of in-store shopping closures in Ontario. Net revenue grew by 111% over the comparative 2020 quarter.
  • Record Positive Adj. EBITDA: The Company achieved a record $2.1 million of adjusted EBITDA in the second quarter, its fourth consecutive quarter of positive adjusted EBITDA, and an increase of 6% from the prior quarter (improvement of $2.2MM from prior year). For the trailing twelve months, the Company has achieved $6.1MM in adjusted EBITDA.
  • Flower Sales: 449 kilograms sold in the second quarter, with an average wholesale net price per gram of $7.96, an increase of 4% and a decrease of 11%, respectively, over the prior quarter. The decline in price per gram was a result of a greater volume allocation towards Qwest products versus Qwest Reserve products which achieves a higher price point.
  • Derivative Sales: $5.7 million of net sales of vape and concentrate products in the second quarter, a 2% increase from the prior quarter. Sales growth was driven by increased demand for vape and concentrate products launched within Q2, partially offset by the COVID shut down in Ontario and product launch timeline changes implemented in Alberta and Ontario.
  • Retail Sales: $3.2 million of retail sales, a 1% increase over the prior quarter, primarily driven by seasonality and sales growth in the Alberta retail stores as COVID restrictions relaxed, partially offset by new entrants into the Saskatchewan retail market. Retail sales declined by 17% over the comparative 2020 quarter.
  • Product Innovation Roll-Out
    • Decibel continued its aggressive roll out of in demand products launching 15 new product SKUs across Ontario, Saskatchewan, Alberta and BC in the quarter with strong interest from customers in different jurisdictions and impressive market share improvements.
    • Focused on winning in Ontario, Decibel was successful in both the April and June OCS product calls, the Company achieved 15 new listings that have or will launch in Q2 and early Q3 of this year.
    • Launched two new cultivars, Stuffed French Toast under the Qwest brand and Sunset Mac under the Qwest Reserve brand, in new glass packaging.
    • Launched into the live concentrate category with two live resin vapes under the General Admission brand alongside two strains of Gems & Juice and Live Sugar under the Pressed by Qwest brand.
    • Launched into large format pre-rolls with the General Admission brand, its first dried flower product with 6, 7 and 12 x 0.5g pre-rolls.
  • Thunderchild Cultivation Operational Development: The Company continues to invest in working capital as it ramps the facility and has now fully planted and commissioned all 20 rooms with a number of rare cultivars coinciding with Decibel’s unique product roadmap. Thus far, the facility has achieved and outperformed expectations on yield per square foot. The Company anticipates run rate production by mid-Q4 with a focus on implementing a number of operational efficiencies that can be achieved in post processing.
  • Strengthened Balance Sheet: On May 13, 2021, the Company announced it had closed an amendment to its authorized overdraft facility increasing it from $1.5 million to $7.5 million with a committed interest rate of Prime + 1.00% (currently 3.45%). The additional capital will accelerate Decibel’s sales growth through the Thunderchild Cultivation facility and new vape and concentrate launches.

Quarterly Highlights

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

Decibel’s financial statements for the three-month period ending June 30, 2021 (“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, 2021, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period. 

About Decibel

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

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

Cautionary Statements

Non-GAAP Measures

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

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

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

Forward Looking Information

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

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

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

SOURCE Decibel Cannabis Company Inc.

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

Decibel Announces Record First Quarter Results, With Sequential Strong Net Revenue Growth and Adjusted EBITDA of $2MM


CALGARY, AB, May 27, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce its first quarter financial results for the three month period ending March 31, 2021.

Record Market Share Across BC, AB, SK, ON in Q1 20211,2:

  • #1 brand in premium flower sales with an 8.4% market share
  • #1 brand in concentrate sales with a 21.9% market share
  • #3 brand in vape sales with a 10.0% market share

“These exceptional first quarter results are a testament to the strength of our brands, industry-leading product quality and ability to develop and execute an innovative product portfolio that meets the needs of today’s cannabis consumer”, said Cody Church, Interim CEO of Decibel. “Despite significant industry headwinds in the quarter, we delivered on our commitment of sustainable and profitable growth, while substantially strengthening our balance sheet and available liquidity.”

Key Financial Highlights

  • Record Net Revenue: Net revenue grew to $12.6 million in the first quarter, an 11% increase over the prior quarter, driven by strong sales growth from vape and concentrate products and continued demand for Qwest flower. Net revenue grew by 151% over the comparative 2020 quarter.
  • Record Positive Adj. EBITDA: The Company achieved a record $2.0 million of adjusted EBITDA in the first quarter, its third consecutive quarter of positive adjusted EBITDA, and an increase of 84% from the prior quarter. Adjusted EBITDA improved by $2.5 million over the comparative 2020 quarter.
  • Flower Sales: 432 kilograms sold in the first quarter, with an average wholesale net price per gram of $8.94, an increase of 14% and 4%, respectively, over the prior quarter. Decibel continues to see strong demand for premium cannabis and its Qwest products, which command industry leading pricing with demand outstripping current supply.  
  • Derivative Sales: $5.6 million of net sales of vape and concentrate products in the first quarter, a 23% increase from the prior quarter. Sales growth was driven by increased demand for vape and concentrate products launched in the fourth quarter.
  • Retail Sales: $3.2 million of retail sales, a 15% decrease over the prior quarter, primarily driven by seasonality and new entrants into the Saskatchewan retail market. Retail sales grew by 13% over the comparative 2020 quarter. Decibel’s retail portfolio continues to bring strategic value, contributing to the success of recent product launches, product innovation and understanding consumer trends.
  • Thunderchild Operational Development:
    • Achieved a minor contribution of first revenue out of the facility in March 2021
    • Completed seventh harvest since commencement of operations
    • Eight grow rooms planted and at various stages (40% of total facility planted)
  • Launch of New Vape & Concentrate Products:
    • In April, Decibel continued to innovate in the vape category with the launch of its first 100% Live Resin Vape with its General Admission Kootenay Fruit live resin vape and a new flavour of distillate vape with its General Admission Rainbow Sherb distillate vape cartridge
    • In April, Decibel launched into the premium concentrate category with its first live, loose concentrate with its Apricot Kush live sugar, available in BC, Alberta and Saskatchewan now and in Ontario in July
    • Additional upcoming Q2 2021 launches including additional live resin vapes and live sugar along with gems & juice (diamonds & sauce)
  • Strengthened Balance Sheet: On May 13, 2021, the Company announced it had closed an amendment to its authorized overdraft facility increasing it from $1.5 million to $7.5 million with a committed interest rate of Prime + 1.00% (currently 3.45%). The additional capital will accelerate Decibel’s sales growth through the Thunderchild facility and new vape and concentrate launches

Quarterly Highlights

Link to Decibel’s Investor Presentation

Decibel’s financial statements for the three-month period ending March 31, 2021 (“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 March 31, 2021, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.  

HiFyre Retail Analytics, Licensed Producer Sales over Time in BC, AB, SK, ON, January 1, 2021 – March 31, 2021
HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram
3 Inter-company revenue of $658 pertaining to sales to the retail operations, has been eliminated on the Company’s Interim Consolidated Financial Statements. In the table above, the inter-company revenue elimination has been allocated between wholesale revenue and retail revenue to provide a more accurate depiction of business performance.
4 Adjusted EBITDA is a non-GAAP performance measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” for further details.

About Decibel

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

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

Cautionary Statements

Non-GAAP Measures

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

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

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

Forward Looking Information

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

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

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

SOURCE Decibel Cannabis Company Inc.

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

Decibel Announces Record Market Share, Provides Update on Thunderchild Cultivation Operational Development and Upsize to Authorized Overdraft


CALGARY, AB, May 13, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a premium cannabis producer, is pleased to provide a corporate update regarding record performance of its cannabis derivative products, operational developments at its Thunderchild facility and other key initiatives.

Link to Decibel’s Investor Presentation

“We are expanding our market share in the high growth premium flower, concentrate, and vape categories, through our commitment to quality, innovation, and creating choice for customers.” said Cody Church, Interim Chief Executive Officer of Decibel. “We continue to execute on our strategic plan with two significant inflection points coming – the launch of our premium cannabis 2.0 products and increasing our flower capacity from 1,800 kg to 9,000 kg over this year.”

To support the production growth and innovation pipeline, Decibel has doubled its sales force with a focus on the Ontario, BC and Alberta markets to ensure budtenders and retailers are educated on the quality of Decibel products and these products are highly visible to consumers at the point of purchase.

Corporate Update – Flower

In the fourth quarter of 2020, Decibel made minor investments in lighting, monitoring, and other tools to improve yields within the Qwest Estate cultivation facility in Creston, BC. The results from this investment have been significant in Q1 2021, with total harvested sellable flower of ~483kg compared to the prior quarter of 300kg, a 61% improvement.

  • In Q1 2021, across British Columbia, Alberta, Saskatchewan, and Ontario, Decibel achieved1:
    • #1 brand in the premium flower sales with an 8.4% market share under Qwest2
      • Exited the quarter with an 8.2% market share in March 2021
      • Continues to remain supply constrained in key markets

Thunderchild operations are on track with Decibel’s execution timeline to reach full run rate production. The facility is integral to Decibel’s rotational strategy to deliver consumers more choice of quality grown, rare cultivars in the dried flower and pre-roll product categories.

  • The Thunderchild Facility achieved first revenue out of the facility ahead of guidance in March 2021, with first product testing between 23.5 – 26% THC
    • Completed fourth harvest since commencement of operations
    • Six grow rooms planted and at various stages (30% of total facility planted)
    • East wing vegetation rooms now online to service second half of facility

Corporate Update – Concentrates and Vapes

Since January 2021, Decibel has launched 7 SKUs and now has a total of 29 vape and concentrate SKUs in recreational markets across five provinces including British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario. Looking ahead, the Company anticipates launching over 23 additional product SKUs to meet its 30 product SKU target for 2021, including its highly anticipated premium branded vapes and concentrates.

  • In Q1 2021, across British Columbia, Alberta, Saskatchewan, and Ontario, Decibel achieved1:
    • #1 brand in concentrate sales with a 21.9% market share under Blendcraft by Qwest
      • Exited the quarter with a 22.5% market share in March 2021
    • #3 brand in vape sales with a 10.0% market share under General Admission brand
      • Exiting the quarter with a 10.8% market share in March 2021
  • In April 2021, Decibel continued to innovate in the vape category with the launch of its first 100% Live Resin Vape with its General Admission Kootenay Fruit live resin vape and a new flavour of distillate vape with its General Admission Rainbow Sherb distillate vape cartridge
  • In April 2021, Decibel launched into the premium concentrate category with its first live, loose concentrate, with its Apricot Kush live sugar, available in BC, Alberta and Saskatchewan now and in Ontario in July
  • Additional Q2 2021 launches upcoming including additional live resin vapes and live sugar along with gems & juice (diamonds & sauce)

Corporate Update – Working Capital

Decibel is pleased to announce that is has entered into an amendment to its commitment letter with Connect First Credit Union Ltd. (“Connect First”) in respect of the Company’s $1.5 million authorized overdraft against government receivables (the “Authorized Overdraft”). The Authorized Overdraft will increase from $1.5 million to $7.5 million with a committed interest rate of Prime + 1.00% (currently 3.45%). The additional capital will support and accelerate Decibel’s continued sales growth through the Thunderchild cultivation facility and new vape and concentrate launches. Decibel expects to close the increase to the Authorized Overdraft on or before May 14th, 2021.

HiFyre Retail Analytics, Licensed Producer Sales over Time in BC, AB, SK, ON, January 1, 2021 – March 31, 2021
HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, 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 expected closing date of the increase to the Authorized Overdraft, the launch of the Company’s premium cannabis 2.0 products and increased flow capacity, anticipated execution timeline for Thunderchild to reach full run rate production and the results and benefits thereof, the anticipated launch of over 23 additional product SKUs and the nature thereof, the anticipated increase to the Authorized Overdraft and the terms thereof, the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

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

SOURCE Decibel Cannabis Company Inc.

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

Decibel to Participate in Upcoming Investor Conferences


CALGARY, AB, May 10, 2021 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce the Company will have senior management participating in the following virtual conferences.

  • Canaccord Genuity Cannabis Virtual Conference – May 11, 2021
  • Emerging Growth Conference – May 12, 2021

Link to Decibel’s Investor Presentation

In addition to the webcast presentation, Decibel will be conducting virtual one-on-one and group meetings with investors. If you are attending the conference and would like to request a meeting with management, please do so through the conference portal.

About Decibel

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

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

Cautionary Statements

Forward Looking Information

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

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

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

SOURCE Decibel Cannabis Company Inc.

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

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


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

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

Key Financial Highlights – Fiscal Year 2020

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

Key Financial Highlights – Fourth Quarter

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

Year-End and Quarterly Highlights

Subsequent Events

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

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

About Decibel

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

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

Cautionary Statements

Non-GAAP Measures

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

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

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

Forward Looking Information

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

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

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

SOURCE Decibel Cannabis Company Inc.

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