Decibel Announces Sale of Creston Property and Consolidation of Cultivation Facilities

Rhea-AI Summary

Decibel Cannabis Company (OTCQB: DBCCF) entered a conditional agreement to sell its Creston, British Columbia property for approximately $2,500,000 and will consolidate the Creston cultivation facility into its Battleford, Saskatchewan site.

The company said proceeds will repay part of its term debt, the transaction aims to generate $4 million in annual cost savings, is expected to close in April 2026, and is intended to improve production efficiency and strengthen the balance sheet.

Positive

• $2.5M sale proceeds to repay term debt
• Estimated $4M annual cost savings from consolidation
• Consolidation to improve production efficiency via higher utilization
• Expected balance sheet strengthening from debt reduction

Negative

• Transaction is conditional; closing in April 2026 is not guaranteed

News Market Reaction – DBCCF

+0.67%

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+0.67% News Effect

On the day this news was published, DBCCF gained 0.67%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CALGARY, AB, Feb. 25, 2026 /PRNewswire/ - Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF), a market leader in Canadian branded cannabis manufactured products and global medical exports, announces that it has entered into a conditional sale agreement (the "Agreement") for its property located in Creston, British Columbia and its related consolidation of its cannabis cultivation facility situated on the subject property (the "Facility").

The sale price of the property will be approximately $2,500,000 with all sale proceeds being used to repay a portion of the Company's recently announced term debt. In conjunction with sale of the property, the Company is consolidating the Facility's operations into the Company's other cultivation site located in Battleford, Saskatchewan. Both the sale and consolidation align with the Company's continued focus on operational efficiency and long-term profitability.

"This is a proactive step to further optimize our operating footprint and support disciplined, profitable growth," said Ben Sze, Chief Executive Officer of Decibel. "Our cultivation capacity is well aligned with demand, and this consolidation strengthens our ability to support brand growth in Canada and our global export business. By concentrating production into fewer, higher utilized facilities, we improve efficiency, reduce complexity and strengthen our cost structure. I also want to thank the team in Creston for their contributions and the role they have played in helping build the business."

The transaction is expected to:

• Generate cost savings of $4 million annually due to consolidation;
• Have no impact on the Company's revenue outlook;
• Improve production efficiency through higher utilization across remaining assets; and
• Strengthen the Company's balance sheet.

The Transaction remains subject to standard closing conditions and is anticipated to close in the month of April 2026.

About Decibel

Decibel is a consumer-focused cannabis company with a strong foundation in the Canadian adult-use market, built on leading brands including General Admission, Qwest and Standard Issue. The Company focuses on disciplined innovation, consistent product quality and strong brand execution. Alongside its leadership position in Canada, Decibel is a significant and growing participant in international cannabis markets. Decibel operates a processing and manufacturing facility in Calgary, Alberta, a cultivation facility in Battleford, Saskatchewan, and an EU GMP licensed cultivation and processing facility in Chatham, Ontario.

www.decibelcc.com

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 Statements

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 terms of and anticipated closing of the sale of the Creston property; the Company's ability to realize operational efficiencies following the sale of the property; and the expectation that the sale will generate cost savings, will have no impact on revenue, improve production efficiency and strengthen the Company's balance sheet; the Company's ability to drive disciplined innovation in its core branded product business; and the Company's ability to expand and diversify its premium product brand portfolio in Canada and globally.

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: the ability of the parties to satisfy the conditions to closing of the sale of the Creston property; the ability of the parties to complete the sale on the terms currently contemplated or at all; the inability of the Company to efficiently consolidate operations at its other production facility; risks relating to delays; other regulatory changes and impacts; capital requirements; displacement requirements; unforeseen requirements resulting from global macro-economic events, conditions and factors; the ability to obtain and maintain licenses to retail cannabis products; review of the Company's production facilities by Health Canada and maintenance of licenses (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, international export rules and regulations; 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; 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 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.

These forward-looking statements are made as of the date of this news release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

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SOURCE Decibel Cannabis Company Inc.

FAQ

What is Decibel announcing about the Creston property and DBCCF on February 25, 2026?

Decibel is selling the Creston property for about $2,500,000, with proceeds used to repay term debt. According to the company, the sale pairs with consolidation of Creston cultivation into Battleford to improve efficiency and reduce costs.

How much annual cost savings did Decibel say the DBCCF consolidation will generate?

Decibel projects $4 million in annual cost savings from the consolidation. According to the company, savings come from concentrating production into fewer, higher-utilized facilities and reduced operational complexity.

When does Decibel expect the Creston property sale and consolidation to close for DBCCF?

The company expects the transaction to close in April 2026, subject to standard closing conditions. According to the company, the agreement is conditional and timelines depend on satisfying those conditions.

Will the Creston sale affect Decibel's revenue outlook for DBCCF?

Decibel said the sale and consolidation will have no impact on revenue outlook. According to the company, production capacity remains aligned with demand and revenue guidance is unchanged.

How will Decibel (DBCCF) use the proceeds from the Creston property sale?

Proceeds of approximately $2,500,000 will be used to repay a portion of the company's term debt. According to the company, this action is intended to strengthen the balance sheet.

What operational change is Decibel making to cultivation facilities described in the Feb. 25, 2026 announcement?

Decibel will consolidate the Creston cultivation facility into its Battleford, Saskatchewan site to concentrate production. According to the company, this consolidation aims to increase utilization and reduce complexity across remaining assets.