Decibel Announces Sale of Creston Property and Consolidation of Cultivation Facilities

Executive Summary

• Decibel Cannabis Company entered a conditional agreement to sell its Creston, BC property for approximately $2.5 million.
• Proceeds will be used to repay a portion of recently announced term debt, improving the balance sheet.
• Consolidating the Creston cultivation facility into the Battleford, SK site is expected to generate ~$4 million in annual cost savings with no impact on revenue outlook.

Key Details

• Transaction: Conditional sale agreement for the Creston property (British Columbia).
• Sale Price: Approximately $2,500,000 CAD.
• Use of Proceeds: Repayment of a portion of Decibel’s term debt announced earlier in the year.
• Closing Timeline: Anticipated to close in April 2026, subject to standard closing conditions.
• Operational Impact:
• Consolidation of Creston cultivation operations into the Battleford, Saskatchewan facility.
• Expected annual cost savings of $4 million due to higher utilization and reduced complexity.
• No anticipated impact on the company’s revenue outlook.
• Strategic Rationale: Enhances operational efficiency, strengthens cost structure, and supports disciplined, profitable growth for both Canadian brand expansion and global export business.

Notable Quotes

“This is a proactive step to further optimize our operating footprint and support disciplined, profitable growth,” said Ben Sze, Chief Executive Officer of Decibel.
“By concentrating production into fewer, higher utilized facilities, we improve efficiency, reduce complexity and strengthen our cost structure.”