Cannabis Co. Decibel Posts Record Performance Of Cannabis Derivative Products, Upsizes Authorized Overdraft
During the fourth quarter of 2020, the cannabis producer supported advancements of various tools to boost yields in its Creston, British Columbia-based cultivation facility. Thanks to that, the company saw a 61% improvement in total harvested sellable cannabis flower, reaching 483 kilograms in the quarter.
In the first quarter, across several markets, including Alberta, Ontario, British Columbia, and Saskatchewan, Decibel was the number one brand in premium flower sales, holding 8.4% of the market share.
"We are expanding our market share in the high growth premium flower, concentrate, and vape categories, through our commitment to quality, innovation, and creating choice for customers." Cody Church, Interim CEO of Decibel said in a statement. "We continue to execute on our strategic plan with two significant inflection points coming – the launch of our premium cannabis 2.0 products and increasing our flower capacity from 1,800 kg to 9,000 kg over this year."
The company’s Thunderchild facility has been running according to Decibel’s schedule to achieve full run-rate production. The facility had its first revenue beating the guidance in March, with the first products testing between 23.5 to 26% THC.
It had finalized its fourth harvest since launching activities, and has six cultivation rooms planted, accounting for 30% of the total facility.
Concentrates and Vapes
So far this year, the Calgary, Alberta-based company launched seven SKUs, now offering 29 vape and concentrate SKUs in adult-use markets across British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.
Decibel plans to launch at least 23 additional product SKUs to reach its goal for this year, including branded vapes and concentrates.
In the first quarter in Alberta, Ontario, British Columbia, and Saskatchewan, Decibel was the number one brand per concentrate sales, having a 21.9% market share. It was dubbed the third brand based on vape sales, having a 10.0% market share.
In April, Decibel launched its first 100% Live Resin Vape with its General Admission Kootenay Fruit and General Admission Rainbow Sherb distillate vape cartridge. Furthermore, the same month it launched its first live, loose concentrate with its Apricot Kush live sugar.
The cannabis company also announced it had signed an amendment to its commitment letter with Connect First Credit Union Ltd. in relation to the company’s $1.5 million authorized overdraft against government receivables. Through the amendment, it has raised it to $7.5 million with a committed interest rate of Prime + 1.00%.
It plans to use the additional funding to back and speed up its sales growth via the Thunderchild cultivation facility and to launch new vape and concentrate products.
Decibel’s shares were trading 1.06% lower at 16 cents per share at the time of writing.
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