Business
How Decibel disrupted Canadian cannabis: Q&A with exec Adam Coates
Decibel Cannabis is a rare breed among licensed producers in Canada.
The company’s ascent to the top of market-share charts in key product categories came not from costly and severely dilutive mergers and acquisitions – a strategy employed by some larger rivals.
As of April, the Alberta-based company said its national share was 7.1% – good enough for second place in Canada’s hotly contested market, though market analytics firm HiFyre had Decibel as No. 1 in the key provinces of Ontario, British Columbia, Alberta and Saskatchewan, according to a recent research note by the Bank of Montreal.
The key for Decibel thus far is being nimble, innovative, financially prudent and having exceptional operations.
“I think it’s not a crazy secret sauce, but it’s really understanding the customer, where they’re going, what they’re looking for and why they’re looking for those things,” Adam Coates, the company’s chief revenue officer, told MJBizDaily in a phone interview.
“And shaping our products and brand offerings to fit that and then having really great customer service.”
For instance, the company’s infused pre-rolls disrupted that cannabis segment, beating out more capitalized rivals.
Coates suggested that what a lot of the big licensed producers forgot to do was ask, “Who’s actually consuming it now?”
Instead, they asked, “Who do we want to consume this five or 10 years from now?”
“And how are we creating products for them that will then lead to more consumers entering the category?” he asked.
“I think they (large rivals) were fishing where the fish weren’t.”
Decibel has reported 10 consecutive quarterly positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the latest being 7.1 million Canadian dollars ($5 million) in the fourth quarter of 2022 and a small net loss of CA$569,000 in the first quarter.
Decibel, which trades as DB on the TSX Venture Exchange, also generated CA$8.3 million in positive cash flow from operations in fiscal 2022 while recording a net loss of CA$4.5 million.
For the final quarter of 2022, however, net income was a positive CA$654,000.
MJBizDaily spoke with Coates about Decibel’s relative success and what the company does differently to stay ahead in Canada’s hypercompetitive cannabis industry.
Can you give an example of how has Decibel has tried something new and failed – and then found a solution?
We had been chasing down infused pre-rolls. We saw what was going on in California and were really excited about it.
When Health Canada issued a memo in August 2021 clarifying that a cannabis product including dried cannabis and a cannabis extract is classified as a cannabis extract product, that gave us clarity on how infused pre-rolls would be categorized by the regulator, and that we could begin production of these types of products.
This ultimately was the green light we needed to roll out our infused pre-roll strategy.
After two or so months, we launched our first infused pre-roll.
It was really exciting for a very short period of time, and then it was devastating really, really quickly. The joints didn’t work. They didn’t pull.
It was a flop for all intents and purposes.
But we really believed in the product and believed in the insights about understanding what consumers were looking for in Canada.
We still felt really good about it. We reformulated the product, came up with a new product and continued pressing forward.
Today, there’s no question we’re the leader in that category and only still growing.
The Ontario Cannabis Store is increasing its margin on some products and lowering it on others. The margin for pre-rolls is doubling to almost 30%. How will that affect the market?
It’s literally the million-dollar question.
I think what you’re going to see is prices (of infused pre-rolls) will rise for the retailer and then to the end consumer.
I think that will impact the velocity and the growth rate you see in this category, which competes really hard with (illicit) market offerings.
That’s not to say there isn’t control within the LP’s hands.
But the LP has to decide whether they’re going to eat the margin and keep the price the same, or if they’re going to pass some along to the retailer and then the end consumer.
That’s a big decision we have to make. We haven’t made our decision in terms of where we’re going with our pricing. That’s to come later on this summer.
I don’t think there’s a lot of LPs out there who are going to be able to handle that reduction in margin, considering that they (infused pre-rolls) are very costly to make, the excise burden on them is huge.
Some of your competitors wouldn’t still be in business were it not for the Bay Street capital spigot. How do Decibel’s executives approach the business differently?
Our executive group has more or less been with the company since Day One, or within the first year.
We don’t have a ton of ego. The belief in what we’re doing, the brands we’re building, the products we’re making, I think really help.
We run really, really lean from a people perspective.
And we’re very, very cautious about making investments and ensuring they have good rates of return.
We’re forced to do that. We’ve been cash-strapped, basically, since 2020, and have been able to grow the business massively without really raising a whole bunch of extra capital.
That’s forced us to be really prudent and fiscally responsible.
I think if you compare where we sit on the market-share table to some of those other companies, I think our leadership team and our senior leaders are much more involved in actually doing the work and helping make sure the business progresses.
That has other benefits, like we understand what’s going on more and making better decisions.
Tell us about a time where you decided to cut off a product that didn’t work out.
As aggressive as we are about launching new products, being innovative and launching new form factors, we’re equally as aggressive in cutting off products that don’t work anymore.
A good example is we launched a whole bunch of different form factors of infused pre-rolls – hash-infused, live resin-infused, kief-infused – and they just didn’t work as well as our champion, which is the distillate-infused products.
So making quick decisions and seeing (what) is clearly not working, understand why it didn’t work and asking if it is something you can overcome by adjusting the positioning or product, or that it is not a viable product/category and move efforts elsewhere.
Hash is a great example. Hash is the top-selling concentrate, and pre-rolls are growing like crazy, so it would reason that a hash-infused pre-roll would make a lot of sense.
But what we figured out is hash consumers like to roll their own joints. They tend to be a bit more of an older demographic that is set in their traditions in how they consume.
They’re not as interested in a pre-roll form factor, and so, instead of trying to keep pushing on something that doesn’t work for the consumer, we moved on and focused on the products consumers want.
How has innovation helped Decibel grow when others barely struggle to maintain what they have?
I think we have a really good handle on what the consumer is looking for, what it is about certain products they’re drawn to, aside from just price.
What we know about the cannabis consumer is that (legalization) is still very new, and they want to try a whole bunch of different things.
Having constant innovation, constantly having something new – even if that’s just a new cultivar or a new flavor – has been really important.
Let’s go back to 2019 and vapes.
We asked, “Why are people buying vapes? What are the things about vapes that they like? And what don’t they like? What are some issues that they’re having?”
We figured out how to position ourselves in the category amongst all those monsters (larger competitors).
It didn’t happen overnight, but in a year and a half, we were the No. 1 vape brand in the country.
I’d be remiss if I didn’t call out a really flexible and hardworking operations team.
You can’t have a strong commercial strategy without an exceptional operations and supply-chain team.
Source: https://mjbizdaily.com/decibel-cannabis-positive-cash-flow-chief-revenue-officer-adam-coates/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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