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.
1 HiFyre Retail Analytics, Licensed Producer Sales over Time in BC, AB, SK, ON, January 1, 2021 – March 31, 2021 |
2 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.
Stuart Boucher, [email protected], 780-619-0310, www.decibelcc.com
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