## Decibel Cannabis Expands Global Reach with Acquisition of AgMedica Bioscience
Decibel Cannabis Company Inc., a leading player in the premium cannabis and extract manufacturing space, has made a strategic move to bolster its international presence and secure substantial growth in 2025. The company announced the acquisition of AgMedica Bioscience Ltd., a prominent player in international medical cannabis exports, through a $6.3 million unsecured convertible debenture transaction.
This acquisition marks a significant milestone for Decibel, providing the company with direct access to AgMedica’s EU GMP certified facility. This certification is crucial for exporting cannabis products globally, opening doors for Decibel to expand its reach beyond Canadian borders. The move also strategically aligns with Decibel’s vision for profitable growth fueled by synergistic acquisitions.
Key Highlights of the Acquisition:
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EU GMP Certification:
AgMedica’s EU GMP certification enables Decibel to export its products to international markets, significantly expanding its reach and potential customer base.*
International Strategy:
The AgMedica facility becomes a cornerstone for Decibel’s international strategy, enabling the company to extend its premium brands and products to a wider global audience.*
Revenue and EBITDA Projections:
Decibel projects that AgMedica could contribute a substantial $30 million in net revenue and $4 million in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in 2025. This acquisition is anticipated to push Decibel’s overall 2025 pro-forma net revenue to $130 million and adjusted EBITDA to $25 million.*
Increased Production Capacity:
AgMedica’s EU GMP and IMC-GAP certified facility boasts an annual flower production capacity of 5.1 metric tonnes per annum (TPA). When combined with Decibel’s existing GACP facility, the total exportable flower production capacity surpasses 12 TPA.*
Financial Benefits:
Decibel anticipates that AgMedica will generate free cash flow in 2025, with limited working capital requirements due to the acquisition being free and clear of certain historical liabilities.Beyond the Immediate Acquisition:
Decibel’s strategic acquisition of AgMedica also paves the way for exciting future growth opportunities. These include:
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Expanding Export Markets:
Decibel can now leverage its EU GMP certification to further expand its reach in existing export markets like Australia, Denmark, Germany, Israel, Norway, Spain, and the United Kingdom.*
New Product Launches:
The acquisition supports Decibel’s recent vape launches in Australia and the United Kingdom, providing a springboard for new product introductions in key markets.*
Contract Manufacturing Opportunities:
Decibel can now offer contract manufacturing services to partners, providing them access to international markets through its EU GMP certified facility.*
Production Optimization:
Decibel aims to improve production yields at AgMedica’s facility, leveraging its expertise and technology to enhance efficiency and profitability.*
Enhanced Profitability:
Decibel plans to implement production optimization and automation initiatives to further enhance the profitability of AgMedica’s operations.Decibel’s Commitment to Growth:
This acquisition underscores Decibel’s commitment to strategic growth through synergistic acquisitions and international expansion. The company’s vision is clear: to deliver high-quality products that delight customers and establish a strong global presence in the cannabis industry. The acquisition of AgMedica is a crucial step in realizing this ambitious vision.
About Decibel Cannabis Company Inc.:
Decibel Cannabis is a consumer-focused cannabis company dedicated to providing innovative, high-quality products. Its portfolio includes leading brands like General Admission, Qwest, and Vox, distributed both within Canada and expanding internationally. Decibel operates a processing and manufacturing facility in Calgary, Alberta, and two cultivation facilities in Creston, British Columbia, and Battleford, Saskatchewan.
