Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) reported an operational update with respect to its capital projects and announces its fourth consecutive month of record market share in February. The company did not release any sales figures.
“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
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Looking ahead the company wrote in its investor presentation for Winter 2022 that it is planning on high double digit revenue growth for 2022 with 15 new products launching in the year. The company is going to expand its flower and infused pre-rolls. It is targeting 40 – 45% product margin through investments in scale and automation and anticipating milestones of cash flow generation in first half of 2022.
Decibel said it 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 labor and logistics costs. The Health Canada license is expected to be received within Q2 2022.
In early March, Decibel said it 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 said it 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.