💸 The Tape

Decibel Looks To Tap Into International Cannabis Markets

Decibel Cannabis Company Inc. has just taken a bold leap into the international market with its acquisition of AgMedica Bioscience Ltd., a Canadian medical cannabis leader. For a tidy $6.3 million, Decibel has snagged a convertible debenture, setting the stage for potentially significant expansion. This acquisition secures Decibel’s coveted EU GMP certification, allowing it to bring premium Canadian cannabis to European and other international markets, including Germany, Israel, and Australia.

This strategic move highlights a larger trend in the Canadian cannabis market: consolidation. In a market flooded with brands and limited by provincial regulations, Decibel’s acquisition is a prime example of how Canadian cannabis operators are finding synergy through mergers and acquisitions to improve profitability and expand market reach.

According to recent sales data, Canadian cannabis sales in August saw an uptick, climbing 3.3% from July to reach CA$436 million. This year-over-year increase of 25.6% underscores the robust demand in the Canadian market. However, intense competition and regulatory challenges have driven the industry to consider consolidation as a pathway to sustainable growth. For operators like Decibel, gaining access to international markets mitigates the saturation risk in Canada, where local competition has been fierce and price wars often squeeze margins.

The AgMedica acquisition brings Decibel immediate benefits. Not only does it provide an additional 5.1 metric tonnes per year (TPA) of certified annual flower production capacity, but Decibel’s exportable flower volume jumps to over 12 TPA, giving them a stronger position in overseas markets. Projections show that AgMedica could add $30 million in net revenue and $4 million in EBITDA in 2025, boosting Decibel’s overall revenue forecast to an estimated $130 million, with $25 million in adjusted EBITDA on a pro-forma basis.

With increasing demand for Canadian cannabis brands abroad, EU GMP certification is a valuable asset. For Decibel, this certification validates its capability to export compliant products that meet stringent international quality standards. In an environment where Canadian operators are struggling to stay afloat domestically, the ability to expand internationally could be the saving grace for companies like Decibel. Moreover, the potential to leverage Thunderchild or other GACP-certified production for international supply and the ability to increase AgMedica’s production with additional investments could further solidify Decibel’s position as a leader in the premium cannabis market.

As consolidation becomes more prominent, the Canadian cannabis market may soon see fewer but more robust players. This trend signals a potential reduction in market volatility, as larger entities with international footprints will likely have the resources and reach to weather economic storms and regulatory shifts. Decibel’s acquisition strategy could pave the way for similar moves by other operators looking to diversify revenue streams and mitigate domestic risk.

In the high-stakes game of Canadian cannabis, Decibel’s latest acquisition isn’t just a strategic play—it’s a survival tactic. By broadening its reach and strengthening its export potential, Decibel is positioning itself to thrive in an industry where only the strongest, most adaptable players will ultimately succeed.

📈 Dog Walkers

Flora Growth Expands Beverage Portfolio

Flora Growth Corp. is bubbling over with excitement as it debuts its new THC-infused Cola, building on the success of its first beverage, Melo, and diving deeper into the fast-growing THC beverage market. Leveraging Flora's proprietary emulsion tech, this cola promises a smooth, consistent experience without compromising on that classic cola taste. With consumers increasingly ditching traditional soft drinks in favor of functional options, Flora’s hemp-infused Cola is well-poised to capture attention.

CEO Clifford Starke calls it "a familiar yet innovative product" and sees the Southeast U.S. as the ideal launchpad. Starting in a high-demand region, Flora is laying the groundwork to make Cloud Cola a national staple, marking another major step in its quest to lead the THC-infused market.

The Chronic Works For Chronic Pain

A yearlong study suggests medical marijuana might be the MVP for chronic pain and mental health relief—at least for a while. Researchers at the University of Melbourne found that, over 12 months, patients with chronic pain and mental health issues reported improvements in symptoms like pain, depression, and sleep troubles. Side effects? Limited mostly to dry mouth and a bit of sleepiness. However, by the 12-month mark, some benefits began to fade, possibly due to THC tolerance or changes in the body’s receptor systems.

While pain relief peaked around six months, the effects for mental health symptoms held steady. A win for cannabis, but the study cautions that some long-term effects may remain uncertain.

👾 Number Of The Day

$83.7M Dollar amount of cannabis products sold in Arizona in August.

🗞️ The News

Most Trump And Harris Supporters Back Marijuana Rescheduling, But GOP Candidate’s Base Is More Likely To View Cannabis Laws As ‘Important’

Florida lawmakers could add cannabis permits if adult-use ballot initiative passes

A Record Number Of Banks Are Working With Marijuana Businesses As Rescheduling Looms, New Federal Data Shows

📺 YouTube

MSOS Monday: How Will Cannabis Stocks Perform This Week? I Trade To Black

What we covered:

✅ On our latest Trade To Black podcast, we break down last week’s performance in the cannabis stock market and discuss what we can expect this week as we approach the U.S. federal election on November 5.

Dan Ahrens from AdvisorShares (NYSEARCA: MSOS) joins us once again to talk about the level of interest and inflows he’s receiving towards the ETF fund, as well as how those funds are allocated.

Plus, we discuss why Florida GOP Congressman Byron Donalds publicly announced late last week that he’s voting “no” on #YesOn3.

Donalds, as first reported by Marijuana Moment, stated, “I’m opposed to it. I think if you’re going to do something like this, this is something that the legislature should weigh in on, similar to what happened with medical marijuana about a decade ago. It should not go into the Constitution.”