#Canada #Calgary #Decibel Cannabis #Creston Property #Cultivation Facility

Strategic Move by Decibel Cannabis

Decibel Cannabis Company Inc., a leader in the Canadian cannabis market, has announced a significant business decision that promises to enhance operational efficiency and long-term profitability. The company has entered into a conditional sale agreement for its property in Creston, British Columbia, along with consolidating its cultivation facility operations into a more centralized site located in Battleford, Saskatchewan.

The sale price for the Creston property is approximately $2.5 million. All the proceeds from this sale will be utilized to partially repay the Company's recently announced term debt. This strategic approach demonstrates Decibel's commitment to maintaining a robust balance sheet while also optimizing its resources.

Optimizing Operations

Ben Sze, the CEO of Decibel, emphasized that this decision aligns perfectly with the company's ongoing quest for operational optimization. Sze stated, "This is a proactive step to further optimize our operating footprint and support disciplined, profitable growth." By consolidating their operations, Decibel capitalizes on its existing production capacity, ensuring alignment with market demand.

The decision is poised to generate annual cost savings of around $4 million, with no anticipated impact on the company's revenue outlook. Furthermore, the consolidation is expected to improve production efficiency by enhancing utilization across existing assets, allowing the company to serve both domestic and international markets effectively.

Strengthening the Balance Sheet

This transaction not only reduces operational complexity but also strengthens Decibel's overall cost structure. By focusing their resources on higher-utilized facilities, Decibel is positioning itself for a stronger performance in both the Canadian market and its expanding global export operations. As Sze noted, concentrating production in a reduced number of locations leads to improved efficiency and a more manageable operational framework.

The Creston team's contributions to the business have been acknowledged, with Sze appreciating their role in the company's growth thus far. This transition marks both a significant transformation and a clear signal of Decibel's intent to continue evolving as a major player in the cannabis sector.

Future Prospects

The transaction remains subject to standard closing conditions and is anticipated to finalize in April 2026. Looking ahead, Decibel's strategy reflects a broader industry trend towards operational consolidation, aimed at adapting to the rapidly changing cannabis landscape. The company's commitment to disciplined innovation and consistent product quality remains at the forefront of its mission.

By focusing on quality operations, Decibel seems well-positioned to not only navigate the challenges of the current market but also capitalize on future opportunities both within Canada and internationally. They continue to expand their premium product brand portfolio, including well-known brands like General Admission and Qwest.

About Decibel

Decibel is a consumer-centric cannabis company grounded in the Canadian adult-use market and aims to deliver quality and consistency through its innovative product offerings. With facilities in Calgary, Alberta, and the newly consolidated site in Saskatchewan, alongside an EU GMP licensed facility in Chatham, Ontario, Decibel is set to solidify its standing within the cannabis community.

For further information or inquiries, visit the official Decibel website at Decibel Cannabis Company.