Decibel Announces Q1 2020 Financial Results Reflecting First Full Quarter of Contributions from Merger.

CALGARY, AB: Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF) is pleased to announce its first quarter financial results for the three-month period ending March 31, 2020. Decibel's financial statements for the three-month period ending March 31, 2020 ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for the reporting period are available under the Company's profile at www.sedar.com.

"During the first quarter of 2020, we made significant steps towards completing integration and cost saving initiatives, while continuing to progress our large-scale development projects. Although our targeted cost structure is not fully reflected in this quarter's financial results, early impacts of our efforts are starting to be realized," said Benjamin Sze, CEO of Decibel. "We expect to continue to see cost reductions and growth as we operationalize our extraction & manufacturing facility and capture further production efficiencies at our Creston facility."

The first quarter of 2020 reflects the Company's first period that recognizes full quarter results of the consolidated entity resulting from the plan of arrangement (the "Arrangement") that was completed by We Grow BC Ltd. on December 19, 2020, resulting in a reverse takeover of Westleaf Inc.

Investor Highlights

Total net revenue for the first quarter of $5.0 million, a $4.5 million increase over the comparative period

Sold 224 kilograms of cannabis in the first quarter achieving an average wholesale flower gross price per gram of $11.85

Adjusted EBITDA loss for the first quarter of $0.4 million

Three months ended

March 31, 2020

March 31, 2019

Net wholesale revenue

2,227

506

Kilograms sold

224

59

Average wholesale flower gross pricing per gram

$11.85

$10.03

Net wholesale flower gross pricing per gram

$9.95

$8.63

Kilograms of cannabis harvested

314

188

Number of retail stores

4

nil

Retail revenue

2,809

nil

Total

Net revenue

5,036

506

Gross profit (loss) before fair value adjustments

2,142

136

Adjusted EBITDA (a)

(418)

(132)

(a)

Adjusted EBITDA is a non-GAAP performance measure. Refer to "Cautionary Statements - Non-GAAP Measures" for further details.

Q1 2020 Financial Highlights and Subsequent Events

Total net revenue grew tenfold in the first quarter to $5.0 million over the first quarter of 2019, driven by execution on the strategic plan resulting from the Arrangement, continued strong demand for Qwest products, and increases in wholesale...