Decibel Archives - Green Market Report

Debra BorchardtJanuary 14, 2022
QWEST_Jar-and-Box-Mockup_V1-1.jpg?fit=711%2C474&ssl=1

4min5700

Canadian-based Decibel Cannabis Company Inc.  (TSXV: DB) (OTCQB: DBCCF) announced that it has refinanced $54 million of its debt.  Decibel entered into an amended and restated commitment letter with connectFirst Credit Union Ltd. over an initial 5-year term for the debt. The Committed Amount is comprised of $40.5 million of term debt, a $6.0 million authorized overdraft secured against government receivables, and an accordion line of $7.5 million. The company said it expects the proceeds combined with contributions from operations to provide sufficient liquidity to repay Decibel’s convertible debentures on maturity.

“With this refinancing, Decibel has added financial flexibility to optimize its capital structure and is well-positioned to continue to execute its aggressive growth strategy,” said Stuart Boucher, Chief Financial Officer of Decibel. “This transaction reflects the strong position Decibel has established in the Canadian cannabis market and the continued confidence from connectFirst and our team in the execution of the company’s strategic plan”.

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 that 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.

In November, Decibel reported its third-quarter results with net revenue totaling $13.4 million, a 7% increase over the prior quarter, driven by growth in Decibel’s existing and newly launched flower, vape, and concentrate products. Net revenue grew by 76% over the comparative 2020 quarter. The company sold 492 kilograms of flower in the third quarter, with an average wholesale net price per gram of $7.65, an increase of 10% in kilograms sold, and a decrease of 4% in average wholesale net price per gram, over the prior quarter. The decline in price per gram was the result of a greater volume allocation towards Qwest products versus Qwest Reserve products which achieves a higher price point and the launch of the General Admission line of pre-rolls.

“Decibel’s continued growth is a testament to our consumer-focused approach, the strength of our brands, and our dedication towards producing high-quality products for our customers”, said Paul Wilson, CEO of Decibel. “We are closing out 2021 with strong momentum as we launch 40 new products, elevate the experience our products create for consumers and innovate to meet cannabis consumers’ evolving preferences.”


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 3 days

Happy Friyay! Let’s hope we see more green than red today in the markets

@GreenMarketRpt – 3 days

It’s Thursday and that means it’s the last for the week.

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.