Decibel Announces Closing of $61 Million Credit Facility with ATB Financial

CALGARY, AB , Feb. 10, 2026 /PRNewswire/ - Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF), a market leader in premium cannabis and extract manufactured products, is pleased to announce that it has closed credit facilities totaling $61 million with ATB Financial and ATB Cormark Capital Markets (collectively, "ATB").

"With our existing term loan coming due in January 2027, we were proactive in securing refinancing that extends our maturities to February 2030, reduces our 2026 payment obligations by $5 million, and provides an upsized revolver that allows us to pursue corporate development initiatives." said Ben Sze, Chief Executive Officer of Decibel. "We are now free cash flow positive and without any material near-term debt maturities. The Company remains well positioned to continue its leadership in the Canadian ready-to-consume categories and to drive significant international growth and financial performance through our international business with the AgMedica facility. I also want to thank the ATB team for their support of our business and delivering a market leading four-year term on this financing."

Financing Highlights

• $40 million First Lien Term Facility with normal course principal repayments throughout the term, and a bullet repayment at maturity (the "First Lien Term Facility") which replaces the facility from Servus Credit Union Ltd. (formerly, Connect First Credit Union Ltd.) that was due January 2027.
• $10 million Revolving First Lien Credit Facility which allows flexibility and immediate access to capital to pursue corporate development with immediately available funds. On close, $3 million of such facility will be available, and the remainder will become available once certain conditions subsequent have been satisfied (the "Revolving First Lien Credit Facility" and together with the First Lien Term Facility, collectively, the "First Lien Facilities").
• $11 million Second Lien Term Facility which results in no net change to total liabilities, while reducing certain other 2026 payment obligations, enhancing Decibel's free cash flow generation with normal course principal repayments throughout the term, and a bullet repayment at maturity (the "Second Lien Term Facility" and together with the First Lien Term Facility and the Revolving First Lien Credit Facility, collectively, the "Loan Facilities").

"We are incredibly excited to partner with ATB to position Decibel for continued growth of the business domestically and abroad while strengthening our balance sheet", said Stuart Boucher, Chief Financial Officer of Decibel. "Our strengthened balance sheet will position the Company to pursue corporate development initiatives. Our return on investment on the AgMedica acquisition exceeds 50% annualized and we believe that the available capital will allow us to pursue further opportunities to develop our business and gain scale to become a leading global cannabis company. Capital remains tight in the industry and with this new financing we will be able to pursue opportunities that drive value for the business while still maintaining a debt to EBITDA ratio of less than 2.0x."

The Loan Facilities bear interest at ATB's referenced benchmark rates plus a spread determined by funded debt to trailing twelve month adjusted EBITDA. The Loan Facilities are subject to normal course funded debt, fixed charge and minimum cash covenants.

The First Lien Facilities are secured by a first-priority security interest over all the assets of Decibel, as borrower, and certain of its material subsidiaries, as guarantors. The Second Lien Term Facility is secured by a second-priority security interest over all the assets of Decibel, as borrower, and certain of its material subsidiaries, as guarantors. Each of Loan Facilities includes customary positive and negative covenants and events of default for loans of similar type, including financial covenants.

About Decibel

Decibel is a consumer-focused cannabis company focused on delivering products that delight customers through a commitment to robust innovation and product quality. Leading brands General Admission, Qwest and Standard Issue are among its portfolio sold both across Canada and beginning to extend towards new countries to create a global footprint. Decibel operates a processing and manufacturing facility in Calgary, Alberta, two cultivation facilities in Creston, British Columbia and Battleford, Saskatchewan, and an EUGMP licensed cultivation and processing facility in Chatham, Ontario.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", "is expected", "anticipates", "plans", "forecasts", "estimates", "believes", or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, the anticipated use of funds advanced under the Loan Facilities and statements relating to the anticipated growth of the Company.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the Company's business operations, including regulatory changes and impacts; capital requirements; global macro-economic events, conditions and factors; the ability of the Company to obtain and maintain licenses to retail cannabis products; review of the Company's production facilities by Health Canada and maintenance of licenses (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, international export rules and regulations; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; and general business, economic, competitive, political and social uncertainties.

There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this news release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

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SOURCE Decibel Cannabis Company Inc.