Craft cannabis is making its footprint well known in the cannabis 2.0 wave, and it’s easy to see why. In a nutshell, craft cannabis uses superior cultivation techniques and nutrients to deliver fresh products.
Companies like
Decibel Cannabis Company Inc. (
TSX-V.DB,
OTCQB: DBCCF,
Forum) are at the forefront of the craft cannabis revolution and is focused on developing innovative products within the sector.
Stockhouse Editorial’s Jocelyn Aspa recently had the opportunity to speak with Decibel Cannabis CFO Stu Boucher about his company, highlights thus far and what’s in store for Decibel Cannabis next year.
(Click image to play video)
TRANSCRIPT BELOW
SH: Can we first start off with you providing a brief overview of yourself and the company?
SB: Sure. So I'm the CFO of Decibel and really Decibel is a premium cannabis company and we're focused on the cannabis culture and driving leading innovation within the sector. We have two great brands Quest and General Admission, which have a leading market share backed up by strong financial performance and a massive period of growth ahead of us in the next six months.
SH: What was the company’s interest in the craft cannabis market?
SB: So, it's really centered around us striving for producing high-quality products that are delivering a superior experience to our customers and so within that segment of the business we think we can achieve that goal and frankly it ingrains us in the cannabis culture which we think is critical for our business to succeed.
SH: What have been some company highlights from 2021 thus far?
SB: Yeah. So there's a lot to talk about. We've driven record-level financial performance, so revenue and profitability. We've ramped up our production facilities. Our Thunderchild facility is taking us from about 1900 kilograms to 7,300 and we have about 30 products that we've launched in the market with the majority of both of those things impacting our fourth quarter and Q1 of next year’s results.
SH: Are there any updates regarding the Thunderchild Cultivation centre?
SB: Yeah, so I was actually there a few weeks ago and the product's looking great. It achieved run-rate harvests in August and we expected to achieve record level production available for sale in mid-Q4 and the flour quality coming out of that facility is remarkable. It's meeting our quest standards and we have a bunch of new cultivars on the come.
SH: Recently the company provided a corporate update announcing a total of 40 upcoming new product launches. When does the company expect to launch the products and what does this mean for the company going forward?
SB: So we expect those products to come out over the next three to four months. We should have some coming into the market in October some in November and so on and really where that's important to our business is it creates substantial opportunity for revenue growth. So on average, we get about 720,000 of sales per year from each individual product we have in the market and so those 40 products coming out are going to create substantial revenue growth moving into 2022.
SH: What are some of the strategies in place for the company’s anticipated growth in 2022?
SB: The recent capital raise that was oversubscribed. We got $15 million that we're looking to deploy with two areas of focus, capital investment and growing sales. So first of as we mentioned, we have 40 new products that are on the come and we're going to continue to launch new products going into 2022 driving innovation and moving into new categories with our strong brand equity and the market share we've developed to date as well as trying to grow our distribution by quite a bit. Second, off we have our capital investment. So we have a number of a high return on investment projects and those are going to lead to improved cost structure and expansion on our gross margin which we expect to complete over the next eight months.
SH:
Is there anything investors can look forward to the rest of this year and into next?
SB: Yeah. So I think continue to look for us driving record-level results. Our fourth quarter is certainly going to be impactful, and I'll keep an eye on that and look towards our market share as we continue to execute and roll out this growth plan.
SH: Is there anything I’ve missed you’d like to cover?
SB: Yeah, so the elephant in the room is that Decibel flies under the radar. You look at our market share, we have 3.1% of the Canadian cannabis market and that places us in the top 10 of LPs currently today. We have a tremendous amount of growth ahead of us, 40 new products launching in the next four months quadrupling our flour production and we're doing all of that while being profitable. So it's rare to find in this space and it's what gets me into work every single day and excited about the opportunities ahead of us. So I think that's the last thing I'd like to cover.
To find out more about the company, visit their website at
decibelcc.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.