Upgrading to BUY; Back to Taking Domestic Share; International Runway Visible

Research evidence excerpt

Upgrading to BUY; Back to Taking Domestic Share; International Runway Visible

Cannabis

Decibel Cannabis Company

TD SECURITIES INC. - CANADA RATING CHANGE

May 21, 2026

Price: C$0.13 (05/21/2026) Upgrading to BUY; Back to Taking Domestic

Price Target: C$0.25 (Prior C$0.15) Share; International Runway Visible

BUY (1)

FROM HOLD (2)

ESG SCORE: 60/100

Derek J. Lessard^ THE TD COWEN INSIGHT

514 289 0384

Strong domestic execution, accelerating international growth, and a clearer path to sustained

derek.lessard@tdsecurities.com

margin expansion underpin our upgrade. We view DB's refreshed product portfolio and

Ryan Neal^ international scaling (i.e. processing capabilities and growing extract demand) as key drivers

416 308 2213 of potential incremental growth and mix-driven margin upside.

ryan.neal2@tdsecurities.com

Key Data See our quick take published this morning for our original thoughts on the quarter (link).

Symbol TSX: DB-V

Impact: POSITIVE

12-Month Div (Est.): C$0.00

12-Month Total 92.3% Our 'positive' handle reflects our rating upgrade and higher estimates/target price following

Return:

Q1 results.

52-Week Range: C$0.15-C$0.07

Market Cap: C$75.2MM Our upgrade to BUY from HOLD is underpinned by the following:

Float Shares (mm): 429.1 ■Domestic share has more than stabilized, in our view. DB reported 30bps of market share

Float Cap ($mm): C$56 gains during the quarter. We believe the refresh of the company's core portfolio (i.e.

Dividend: C$0.00 converted General Admission offerings to Liquid Diamond) is resonating with consumers

Yield: 0.0% given the availability of higher-potency SKUs, improved product innovation, and strong

promotional activity. We believe the newly introduced Standard Issue brand is a key tool