Decibel Cannabis Company Inc. (TSX-V: DB) says it will soon be adding new cannabis wax and shatter products to its premium Qwest brand line up.
On Monday, the small-cap cannabis company said it received a sales amendment from Health Canada for an extraction facility located near its home office in Calgary, Alberta.
The Plant by Westleaf Labs has been in development for over a year, before Westleaf Inc. merged last November with We Grow BC Ltd., the parent company of Qwest. The two enterprises would go on to re-brand as the Decibel Cannabis Company in March.
“The ability to manufacture and sell cannabis 2.0 products, in addition to our dried flower, enables Decibel to establish a new revenue stream by expanding production into high margin derivative products,” Decibel CEO Benjamin Sze said in a statement.
Decibel will sell the new value-add products at the company’s four Prairie Records pot shops located in Saskatchewan and Alberta, he added.
The company said it will focus on producing cannabis concentrates first that will replicate the “potent plant characteristics” and experience their Qwest dried flower products are known for.
Health Canada reported last week that newly introduced cannabis extract products represented 14 per cent of total sales across the country in April, while infused edibles made up 12 per cent of sales.
Those numbers are line with recent reports published by Canopy Growth (TSX: WEED). The industry giant said in a presentation last month that 2.0 products now account for over 20 per cent of the Canadian market since they were first legal to sell on Dec. 17, 2019.
Decibel chief growth officer Adam Coates said the products will be launched under the company’s three-pronged brand portfolio of Blendcraft by Qwest, Qwest and Qwest Reserve.
The company said it will continue to build off its unique dried flower strains on the market including Kush Mints, which deliver up to 31 per cent THC.
Because Decibel produces craft cannabis with some of the richest and highest levels of THC and terpenes, it said the potency will bolster quality and efficiency yields in producing the new extract products.
The Plant will also be able to package and sell dried flower from Decibel’s cultivation production site in Creston, British Columbia directly to provincial wholesalers and retailers, according to the statement.
Decibel is still awaiting Health Canada licensing at its Thunderchild cannabis production site located in Battleford, Saskatchewan.
The company aims to increase annual production of Qwest’s cannabis to 9,100 kilograms by the end of 2020 at the Thunderchild “craft-to-scale” facility.
Shares of Decibel climbed one penny, or 15 per cent, Monday on the TSX Venture Exchange.
Top photo by Todd Korol via Westleaf Labs/Decibel