If You Invested in Decibel Cannabis (DBCCF)

Decibel Cannabis Company Inc. (OTCQB: DBCCF; TSXV: DB) is a consumer-focused cannabis company that emphasizes premium cannabis and extract manufactured products. According to the company’s disclosures, Decibel aims to deliver products that delight customers through a commitment to innovation and product quality, and it has built a portfolio of brands that are sold across Canada and are extending into international markets.

Decibel’s brand portfolio includes General Admission, Qwest, and Vox. These brands are highlighted repeatedly in the company’s news releases as core to its identity and growth strategy. General Admission has been described by Decibel as one of the top cannabis brands in Canada, with an emphasis on quality, accessibility, and product innovation. Qwest and Vox are also positioned within the company’s premium and branded product offering, supporting its focus on branded cannabis products rather than unbranded wholesale-only activity.

Operations and Facilities

Decibel reports that it operates a processing and manufacturing facility in Calgary, Alberta, which supports its extract manufactured products and other cannabis formats. The company also operates three cultivation facilities, located in Creston, British Columbia, Battleford, Saskatchewan, and Chatham, Ontario. The Chatham facility is described as an EU-GMP certified cultivation and processing facility, which the company links to its international distribution capabilities and adherence to international standards.

The acquisition of AgMedica Bioscience Inc. (also referenced as AgMedica Biosciences) in the fourth quarter of 2024 is a notable corporate development described in multiple company news releases. Decibel states that this transaction added an EU-GMP certified facility and has been immediately accretive to its results, contributing to net revenue, EBITDA and free cash flow. The company also notes that AgMedica’s facility supports its international platform and global distribution growth, particularly in export markets.

Domestic and International Market Focus

Decibel’s disclosures distinguish between net Canadian recreational sales and international sales. The company reports that its products are available across Canada through licensed retailers, and that it tracks gross and net Canadian recreational sales as key supplementary financial measures. Domestically, Decibel has discussed initiatives such as marketing campaigns, reinvestment in the Qwest brand presence, and the launch of ultra-high potency vapes, infused pre-rolls, large format all-in-one disposable vapes, and milled flower as part of its efforts to support its brands and respond to competition in specific product segments.

On the international side, Decibel reports growing international sales and describes strong demand for its products in export markets. Following the AgMedica acquisition, the company indicates that international sales have become a more significant contributor to net revenue and Adjusted EBITDA. Decibel has also highlighted contracts related to cannabis exports to international markets and has discussed the impact of regulatory developments in certain jurisdictions on the timing of shipments and product launches.

Brand and Product Initiatives

Within its brand portfolio, Decibel has provided detail on specific initiatives. For example, the company has announced the launch and performance of General Admission Liquid Diamond vapes, which are available for licensed retailers to order in several Canadian provinces, including British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. These vapes are offered in strains identified by the company as Very Berry, Atomic Apple and Tangerine Twist. Decibel has also indicated plans to introduce ultra-high potency infused pre-roll product lines under the same strain names in certain regions.

Decibel has also described efforts to expand the General Admission brand internationally. In one news release, the company announced a supply and trademark license agreement with Keren Tirk Ltd. to provide General Admission dried medical cannabis flower for distribution to medical cannabis patients in Israel. The company states that General Admission flower products will be positioned in the mainstream segment in that market and that this launch is complementary to Qwest branded products, providing incremental volume opportunities.

Corporate Governance and Shareholder Matters

Decibel has reported on its corporate governance and shareholder approvals through its public news releases. At an annual and special meeting of shareholders held in December 2025, the company stated that shareholders approved all matters submitted for consideration. These included fixing the number of directors at four, electing directors, appointing MNP LLP as auditors, reapproving a stock option plan, and authorizing a potential share consolidation of up to fifty pre-consolidation shares to one post-consolidation share. The company also noted that, although the consolidation was approved, it had no intention of effecting it at that time and would provide disclosure if that intention changed.

In a separate release, Decibel announced the grant of stock options to certain officers and employees under its stock option plan, describing these as part of its long-term compensation and employee retention program. The company outlined vesting schedules and expiry dates for these options, indicating an ongoing use of equity-based compensation.

Financial Reporting and Non-GAAP Measures

Decibel regularly publishes financial results for quarterly and annual periods, and it highlights several non-GAAP financial measures in its news releases. These include Adjusted EBITDA, Adjusted Net Income (or Adjusted Net Loss), Free Cash Flow, Adjusted Free Cash Flow, and Adjusted EPS, as well as supplementary financial measures such as Gross Canadian Recreational Sales, Net Canadian Recreational Sales, and International Sales. The company provides definitions for these measures and explains that they are not recognized under IFRS, may not be comparable to measures used by other companies, and are used by management to assess operating performance and underlying trends.

For example, Decibel defines Adjusted EBITDA as net income (or loss) and comprehensive income (or loss) excluding unrealized gains on changes in fair value of biological assets, changes in fair value of biological assets realized through inventory sold, depreciation and amortization, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs, severance payments, and other specified adjustments. Similarly, Adjusted Net Income excludes the fair value-related items, and in some periods also excludes a gain on acquisition. Free Cash Flow is defined as cash flow from operations less cash used in investing activities, and Adjusted Free Cash Flow further adjusts for changes in non-cash working capital and repayment of long-term debt.

Decibel’s releases also refer to a Debt to Adjusted EBITDA ratio as a non-GAAP ratio that the company views as useful for assessing its ability to fund financing expenses, net debt reductions and other obligations. The company emphasizes that these non-GAAP measures should be considered together with financial information prepared in accordance with IFRS, and it directs readers to its financial statements and management’s discussion and analysis (MD&A) on SEDAR+ for more detail.

Regulatory and Exchange Listings

Decibel Cannabis Company Inc. is listed on the TSX Venture Exchange under the symbol DB and trades on the OTCQB market in the United States under the symbol DBCCF. The company’s news releases include standard statements that neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of the releases. Decibel also includes cautionary statements regarding forward-looking information and the use of non-GAAP measures in its public communications.

Geographic Footprint

Decibel identifies itself as a Calgary, Alberta-based cannabis company, with operations in multiple Canadian provinces. It reports a processing and manufacturing facility in Calgary, Alberta, cultivation facilities in Creston, British Columbia and Battleford, Saskatchewan, and an EU-GMP licensed cultivation and processing facility in Chatham, Ontario. The company’s brands are sold across Canada through licensed retailers, and its international activities include exports of cannabis products and branded medical cannabis to markets that have been identified in its news releases, such as Israel and other export destinations served through its EU-GMP platform.

Business Focus and Strategy

Across its public disclosures, Decibel consistently describes its focus as being on premium cannabis and extract manufactured products, with an emphasis on consumer-focused brands, innovation, and product quality. The company highlights its efforts to build and sustain brand equity in segments such as vapes, infused pre-rolls, milled flower, and other cannabis formats. It also emphasizes the role of international expansion, supported by its EU-GMP certified facility and a growing pipeline of export contracts, as a key component of its growth strategy.

Decibel’s management commentary in its financial news releases also references efforts to strengthen the balance sheet, including reductions in accounts payable, focus on free cash flow, and attention to financial covenants. The company reports that, in several periods, it remained in compliance with its financial covenants and views non-GAAP measures as useful for evaluating performance over time.