Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to provide an update on its recent Canadian recreational market share, and upcoming product launches in its three major markets – British Columbia, Alberta, and Ontario – in addition to Saskatchewan and Manitoba.
“We remain focused on capturing additional market share through the strength of our brands, industry-leading product quality and continued innovation to meet cannabis consumer’s evolving preferences” said Paul Wilson, Chief Executive Officer of Decibel. “We are closing out 2021 with strong momentum, as we fully realize the impact of our 2021 growth initiatives”.
- #9 largest LP by Canadian recreational market share, with 3.1% in September
- Strong market share across BC, AB, SK, ON in September 20211,2:
- #2 brand in premium flower sales with a 9.0% market share
- #2 brand in concentrate sales with a 12.9% market share
- #3 brand in vape sales with a 12.9% market share
Successful Product Listings & Upcoming Launches
Decibel continues to drive innovation within the recreational market, focusing on consumer insights to shape selection of product offerings, cannabinoid profiles, formulations, and flavours. In its Q2 2021 financial results, Decibel averaged approximately $180 thousand in net revenue per product SKU3 (annualized ~$720 thousand in net revenue per product SKU).
Decibel is in the process of launching 40 new product SKUs between September and January:
- 12 new flower & pre-roll products that will replace existing cultivars in market
- 28 incremental new flower & derivative products
Flower and pre-roll volumes from Decibel’s cultivation assets achieved run-rate harvests in August and are now in the post-harvest phase, with record volumes available for sale mid-Q4. In anticipation of these volumes, Decibel has now listed all flower and pre-roll cultivar offerings in its three major markets – British Columbia, Alberta, and Ontario – in addition to Saskatchewan, and Manitoba.
- British Columbia – 10 new product listings launching in the next 2 months (2 launched recently)
- Ontario – 12 new product listings launching over the next 4 months (4 launched recently)
- Alberta – 14 new product listings launching in the next 2 months (4 launched recently)
The Company continues to innovate with its vape and concentrate offerings with upcoming product line extensions providing more flavours of existing formats, expanding into new & unique product formats, and brand extensions into new product categories.
- British Columbia – 3 new product listings launching in the next 2 months with listing process of additional products ongoing (2 launched recently)
- Ontario – 13 new product listings launching over the next 4 months (2 launched recently)
- Alberta – 10 new product listings launching over the next 2 months (4 launched recently)
1 HiFyre Retail Analytics, Licensed Producer Sales over Time in BC, AB, SK, ON, September 1 – September 30, 2021
2 HiFyre Retail Analytics, Premium flower market defined as flower products sold more than 20% above average selling price per gram
3 See Decibel’s investor presentation page 12.
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.
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, expectations for 2021 and the realization of growth initiatives, anticipated product launches and 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.
These forward-looking statements are made as of the date of this press release and, except as required by law, the Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change.
SOURCE Decibel Cannabis Company Inc.