CALGARY, AB , May 13, 2021 /PRNewswire/ - 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 achieved 1 :
- #1 brand in the premium flower sales with an 8.4% market share under Qwest 2
- 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 inMarch 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 achieved 1 :
- #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 andSaskatchewan 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 14 th , 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