Decibel Cannabis to sell Creston property for $2.5M

Executive Summary

• Decibel Cannabis Company Inc. entered a conditional sale agreement to sell its Creston, B.C., property for approximately $2.5 million.
• Proceeds will be used to repay a portion of recently announced term debt and support balance‑sheet strength.
• The company will consolidate the Creston cultivation operations into its Battleford, Sask., facility, generating estimated cost savings of $4 million annually with no impact on revenue outlook.

Key Details

• Sale Price: Approximately $2.5 million for the Creston property.
• Use of Proceeds: Repayment of a portion of Decibel’s recently announced term debt; improves balance‑sheet leverage.
• Closing Timeline: Transaction subject to standard closing conditions, anticipated to close in April 2026.
• Operational Impact: Consolidation of cultivation activities from Creston into the Battleford site.
• Cost Savings: Expected annual cost reductions of $4 million due to higher facility utilization and reduced complexity.
• Revenue Outlook: No expected impact on company’s revenue guidance.
• Strategic Rationale: Enhances operational efficiency, strengthens cost structure, and aligns cultivation capacity with demand for brand growth in Canada and export markets.

Notable Quotes

“This is a pro‑active step to further optimize our operating footprint and support disciplined, profitable growth,” said Ben Sze, CEO.
“By concentrating production into fewer, higher utilized facilities, we improve efficiency, reduce complexity and strengthen our cost structure.”