17:33:35 EDT Wed 05 Aug 2020
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or Name

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Rubicon Organics Inc
Symbol ROMJ
Shares Issued 36,811,425
Close 2019-08-23 C$ 2.18
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Rubicon Organics closes $8.5-million overnight offering

2019-08-23 09:35 ET - News Release

Mr. Jesse McConnell reports


Rubicon Organics Inc. has closed its previously announced overnight marketed short form prospectus offering of 3.15 million units of the corporation at a price of $2.70 per unit for aggregate gross proceeds of $8,505,000.

"We are very proud to close this overnight offering of units and grateful for the support of both new and existing investors amidst choppy market conditions," commented Jesse McConnell, chief executive officer and co-founder of Rubicon Organics. "These funds will enable us to continue the optimization of our flagship facility in Delta, B.C., to supply superpremium, certified organic cannabis to the Canadian marketplace."

Each unit comprises one common share and one common share purchase warrant of the corporation. Each warrant entitles the holder thereof to purchase one common share at a price of $3.50 per warrant share for a period of 30 months following the closing of the offering, subject to an accelerated expiry if the volume-weighted average price of the common shares on the Canadian Securities Exchange (or other applicable exchange) is equal to or greater than $3.80 per common share for 20 consecutive trading days. It is expected that the warrants will begin trading on Aug. 23, 2019, on the CSE under the symbol ROMJ.WT.

The offering was made pursuant to an agency agreement dated Aug. 12, 2019, among the corporation and a syndicate of agents led by Desjardins Capital Markets and including Canaccord Genuity Corp., PI Financial Corp. and Mackie Research Capital Corp. Pursuant to the agency agreement, the agents received a cash commission equal to 6 per cent of the gross proceeds of the offering and broker warrants equal to 6 per cent of the units sold under the offering. Each broker warrant is exercisable for one common share at any time up to 24 months following the closing date of the offering at an exercise price of $2.70 per broker warrant share.

The corporation intends to use the proceeds from the offering for the continued optimization of its Delta, B.C., facility as well as general corporate and working capital purposes.

The units were issued pursuant to a short form prospectus dated Aug. 16, 2019, filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec. A copy of the prospectus is available under the corporation's profile on SEDAR.

About Rubicon Organics Inc.

Rubicon Organics is a licensed producer focused on building organic-certified, superpremium cannabis brands at its flagship 125,000-square-foot, state-of-the-art hybrid greenhouse, located on a 20-acre property in Delta, B.C., Canada. Management has unparalleled cannabis and organic farming expertise, as well as prior successful commercialization of cannabis with Whistler Medical Marijuana Company, which was purchased by Aurora Cannabis in January, 2019, for $175-million.

The corporation is currently ramping up to produce approximately 11,000 kilograms of organic-certified, superpremium and environmentally sustainable cannabis in 2020 and on creating superpremium brands in Canada. In the United States, the corporation owns a 40,000-square-foot, high-tech hybrid greenhouse in Washington State, which is leased to a state-licensed operator applying Rubicon Organics' proprietary organic cultivation methods.

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