CALGARY, AB,
March 14, 2022 /CNW/ -
Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV:
DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to
provide an operational update with respect to its capital projects
and announces its fourth consecutive month of record market share
in February.
"With our capital projects having achieved key milestones, it is
a testament to our commitment to quality products, which continue
to drive strong growth in market share" said Paul Wilson, Chief Executive Officer of Decibel.
"As these strategic investments come online, we anticipate
operational efficiency gains that will enhance gross margins and
drive growth in our bottom line."
Market Share Summary
|
Nov.
2021
|
Dec.
2021
|
Jan.
2022
|
Feb.
2022
|
Canada1
|
3.3%
|
3.4%
|
3.6%
|
3.8%
|
Major
Markets1
|
4.0%
|
4.2%
|
4.3%
|
4.6%
|
Ontario1
|
3.1%
|
3.1%
|
3.2%
|
3.3%
|
Market Share in Decibel's Major Markets1
- Record 4.6% recreational market share in Decibel's major
markets in February
-
- #1 brand in premium flower & pre-roll sales with a 9.3%
market share2
- #5 LP in pre-roll sales with a 6.2% market share
-
- #3 LP in Alberta with a 9.8%
market share, where the Company is furthest developed with its
infused pre-roll product launches
- 4 brand in concentrate sales with a 7.3% market share
- #2 brand in vape sales with a 12.5% market share
National Market Share1
- Record 3.8% recreational National market share in February
-
- #1 brand in premium flower & pre-roll sales with a 7.6%
market share2
- #7 LP in pre-roll sales with a 4.9% market share
- #4 brand in concentrate sales with a 5.8% market share
- #2 brand in vape sales with a 12.4% market share
Ontario Market Share1
- Record 3.3% recreational Ontario market share in February
-
- #2 brand in premium flower & pre-roll sales with a 6.6%
market share2
- #9 brand in concentrate sales with a 3.5% market share
- #2 brand in vape sales with a 11.7% market share
Operational Update
The Plant Processing Hub
Decibel has completed construction of Phase 1 of its processing
hub expansion at the Plant. Additionally, the Company has submitted
a Health Canada amendment for the Phase 1 area and has initiated
permitting for Phase 2 construction to complete the remainder of
the capital project. Upon licensing, the Phase I area will include
newly automated processing and packaging lines for dried flower and
pre-roll products accompanied by significantly reduced labour and
logistics costs. The Health Canada license is expected to be
received within Q2 2022.
Creston Infrastructure Optimization
In early March, the Company completed the final grow room
upgrade at the Creston facility,
as a part of its staged infrastructure optimization project. This
upgrade is anticipated to have an immediate impact on all new
harvests, further enhancing product quality and contributing to
higher yields per room.
Thunderchild Infrastructure Optimization
The Company is accelerating the implementation of the staged
infrastructure optimization at its Thunderchild Cultivation
Facility which is expected to be complete by end of April. Once
complete, this upgrade is expected to further enhance product
quality and contribute to higher yields, to better meeting growing
demand for Decibel products. Production volumes are expected to be
partially impacted in mid Q2 and resuming full run-rate production
by start of Q4.
Link to Decibel's Investor Presentation
1
|
HiFyre Retail
Analytics, Licensed Producer Sales over Time Nationally and in BC,
AB, SK, ON, November 1, 2021 – February 28,
2022. Decibel's Major Markets consist of BC, AB, SK, ON.
|
2
|
HiFyre Retail
Analytics, Premium flower and pre-roll 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, 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
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 business plans and
strategies, including: that Decibel is well positioned to continue
its revenue and market share growth, 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;
counterparty risk; 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.
This news release also contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about the Company's prospective results of operations
including, without limitation, its expectation that it is well
positioned to continue its revenue and market share growth. 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, the FOFI and are subject to the risks
set forth above. 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 news release and, except as required by law, the
Company assumes no obligation to update the forward-looking
statements, FOFI or beliefs, opinions, projections, or other
factors, should they change.
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SOURCE Decibel Cannabis Company Inc.