With the receipt of the sales amendment, Decibel is able to sell flower and derivative cannabis products to provincial wholesalers and retailers
CALGARY, AB, July 13, 2020 /PRNewswire/ - Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) is pleased to announce that its wholly owned subsidiary, Westleaf Labs LP, has received a sales amendment from Health Canada at its extraction and manufacturing facility, The Plant, located in Calgary, Alberta. The receipt of the sales amendment marks a key milestone for the Company as a fully vertically integrated cannabis business, with the ability to manufacture and sell dried cannabis, cannabis extracts and edible cannabis, as finished packaged products, to provincial wholesalers and retailers.
"The ability to manufacture and sell cannabis 2.0 products, in addition to our dried flower, enables Decibel to establish a new revenue stream by expanding production into high margin derivative products," said Benjamin Sze, CEO of Decibel. "Within the Qwest brand portfolio, we are able to meet the consumer's ever evolving needs while giving priority placement of these products at our retail stores, Prairie Records."
"Our brand portfolio contains three clearly defined brands – Blendcraft by Qwest, Qwest, and Qwest Reserve" said Adam Coates, Chief Growth Officer of Decibel. "These brands offer consumers a range of products and price points that are tailored to fit the different life occasions where they indulge in cannabis. At every level of our business, we're committed to delivering high quality products and experiences "Beyond the Ordinary".
Qwest Product Strategy
The sales amendment unlocks the potential of Decibel's brands (Blendcraft by Qwest, Qwest and Qwest Reserve) and allows the Company to:
- continue to launch trendsetting strains that deliver on THC and terpenes (our latest launches include Kush Mints at 31% THC, MAC1 at 28% THC, Point Break at 25% THC and Pineapple Cake at 24% THC);
- produce derivative cannabis products focused on the concentrates category, which Decibel anticipates will start with launches of wax and shatter SKUs;
- develop cannabis 2.0 product formats that highlight the most desirable and potent plant characteristics, replicating the experience Qwest dried flower is known for;
- utilize high quality input material, rich in THC and terpenes, from Qwest harvests enabling superior end-product quality and increased efficiency yields in extracted products; and
- further expand its supply chain flexibility through The Plant's ability to now package and sell dried flower for Decibel's cultivation production house in Creston, BC and, once licensed by Health Canada, Thunderchild Cultivation in Battleford, SK.
About Decibel Cannabis Company
Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development 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 five provinces across Canada. Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2020. 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, and Blendcraft by Qwest, into new and innovative product formats like concentrates, vapes, edibles and beyond.
Neither TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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 ability to establish a new revenue stream and expand production into high margin derivative products, the Company's ability to expand its supply chain flexibility, the Company's ability to develop new cannabis 2.0 product formats and the various elements and anticipated results of its Qwest product strategy, the timing, construction and licensing of the Thunderchild Cultivation facility, the Company's ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats and the Company's ability to execute on the foregoing. 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 additional timing, delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic; the ability to obtain or maintain licences to retail cannabis products; review of the Company's production facilities by Health Canada and receipt or maintenance of licences 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 TSXV, 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. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE Decibel Cannabis Company Inc.