Decibel Cannabis Company Inc. (TSXV:DB) (OTCQB:DBCCF) provided an update on its strategic priorities and 2022 financial outlook.
Paul Wilson, CEO of the Calgary-based cannabis producer, said Monday that the company has "established a solid foundation through strong execution of our priorities in 2021 and are well-positioned to execute on our 2022 objectives and achieve strong year over year growth in revenue and margins."
Highlights
- Anticipates achieving a milestone of positive cash flow from operations in the first half of 2022.
- Strong 2022 drivers are now in place to generate substantial revenue and EBITDA growth.
- Driving organic growth, targeting 2022 market share growth of over 40% versus 2021.
- Canadian recreational market forecasted to grow more than 30% over the prior year.
- Targeting 40 – 45% product gross margin by mid-2022.
- Repaying its outstanding convertible debentures with low-cost non-dilutive debt capital, resulting in a blended cost of debt capital of less than 5%; and
- Strengthening balance sheet and financial position with the expectation to reach less than 3.0x debt/trailing twelve-month adjusted EBITDA in 2022.
In addition, the company emphasized its plans to focus on the following four strategic priorities in the coming years:
- Continue to champion the Qwest Family of Brands as an industry-leading premium brand, which creates a "halo" extending to Decibel's other brands and products;
- Broaden distribution and enter new markets through a multi-channel and best-in-class sales system;
- Execute on capital investments and maximize product gross margin through a large scale transition from manual to automation driven production lines; and
- Establish and refine product differentiation and competitive advantages.
More recent news from Decibel:
- Decibel Cannabis Shares Trading Lower On Announcing Stock Option Grants
- Decibel Cannabis Company Bolsters Financial Flexibility With $54M Debt Refinancing
- Decibel Reports Strong YoY Revenue Growth In Q3, Plans To Launch 40 New Product SKUs
- Decibel Cannabis Debuts Its First Series Of Infused Pre-Rolls Under General Admission Brand
DBCCF Price Action
Decibel's shares traded 3.09% lower at $0.1036 per share at the market close on Friday.
