Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) announced new leadership changes this Monday including a new chairman and two new members for different committees.
The Calgary-based cannabis company revealed the results of its general meeting of shareholders held last week and named the five directors to the company.
The elected directors include Shawn Dym, Manjit Minhas, Nadia Vattovaz, Jakob Ripshtein and Paul Wilson. Dym will serve as the chairman while Vattovaz will serve as chair of the company’s Audit Committee and Ripshtein will chair the Governance, Compensation and Nominating Committee.
“The experience, proven skillset and pedigree of the new board is tailored for Decibel and the internal and external feedback has been exceptionally positive,” CEO Paul Wilson wrote in a letter to shareholders.
“Their success in the cannabis industry, consumer packaged goods and capital markets, now applied to Decibel, will help the business achieve its objective of becoming a leading Canadian Licensed Producer- this is a very exciting moment for all of us.”
Wilson said in his letter that Decibel’s operating and commercial accomplishments have been remarkable, generating revenue growth of 39 per cent over the first three quarters of 2022. Wilson emphasized that Decibel grew its market share from 3.3 per cent in November 2021 to 5.9 per cent in 2022, making Decibel the fifth largest LP ranked by market share.
He expects the growth to continue but said that despite the company’s strong operating performance, Decibel does not believe these results have been reflected in the company’s share price. He said the cannabis sector has had a difficult time attracting interest and generating value in the capital markets.
“While we have fared better than most other Canadian LPs, we recognize that creating shareholder value is a top priority and our new board will bring added focus to that accountability.”
Decibel believes the cannabis capital markets will shift away from valuing LPs based on the size of capacity and supply, and instead assign appropriate value to demonstrated demand for products, profitable market share and operating profit.
“Ultimately, winning in the consumer market will drive strong operational results which will, in turn, lead to winning in the capital markets. Decibel believes this will attract the recognition and market value that winners are awarded,” wrote Wilson.
Company stock dropped by 5.26 per cent Monday to $0.090 on the Canadian Ventures Exchange.