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Cannabis Stock Climbs as Cash Offer Rises 9%

AllPennyStocks.com - AllPennyStocks.com - Wed Nov 4, 11:06AM CST

Thin trading is one of the quieter problems for small-cap shareholders. When a stock changes hands in limited volume, selling a sizable position can push the price down before the order is filled. That makes a fixed-price cash offer for a large block of shares unusual, and it’s drawing attention to one Canadian cannabis producer this week.

Shares of Decibel Cannabis Company Inc. (TSX-V: DB) (OTCQB: DBCCF) are higher Wednesday after Toronto-based investment firm Ewing Morris raised its all-cash offer for up to 2,392,345 Decibel shares to C$2.09 per share, a 9.4% increase from the original C$1.91. Ewing Morris said the revised price is its best and final offer and will not be increased again.

The new price is about a 27% premium to Decibel’s 20-day volume-weighted average trading price on the TSX Venture Exchange before the original offer was made on October 19, 2026. If fully taken up, the offer would be worth about C$5 million. It covers a capped number of shares, not the entire company.

Ewing Morris also extended the deadline to tender shares to 5:00 p.m. Eastern on November 13, 2026, unless the offer is further extended, varied or withdrawn. Tendered shares, up to the 2,392,345-share maximum, will be taken up on November 13 if the offer’s conditions are met. Payment will follow within three business days. Shareholders who have already tendered and not withdrawn their shares don’t need to do anything further.

Ewing Morris pointed to three reasons for shareholders to accept:

  • The cash premium.
  • The chance to sell a block of shares far larger than the stock’s historical trading volume in a single transaction.
  • A fixed price that avoids the downward pressure a market sale of similar size could create.

The offer is not a takeover bid under Canadian securities laws, and it is being made by Ewing Morris, not by or on behalf of Decibel’s management. All other terms of the original October 19 offer are unchanged. Ewing Morris has posted a letter with more details on the revised offer to Decibel’s SEDAR+ profile.

Decibel, headquartered in Calgary, Alberta, is a Canadian cannabis company. For holders whose shares are accepted under the offer, the C$2.09 price provides a fixed cash value, subject to the offer’s conditions. In a lightly traded small-cap stock, that kind of fixed price for a large block is hard to find.

Shares of DB are up 8.3% to C$1.95 in Wednesday morning trading, while shares of DBCCF have climbed 5.3% to $1.39.

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