Rubicon Organics Closes Final $2.0 Million Tranche of $13.5 Million Upsized Private Placement
- Globe NewswireJune 4, 2020
Closed the second and final tranche of its previously announced upsized non-brokered private placement.
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VANCOUVER, British Columbia, June 04, 2020 (GLOBE NEWSWIRE) — Rubicon Organics Inc. (CSE: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics” or the “Company”) is pleased to announce that it has closed the second and final tranche of its previously announced upsized non-brokered private placement of 851,064 units of the Company (“Units”) at a price of $2.35 per Unit for aggregate gross proceeds of $2.0 million (together with the first tranche, the “Offering”). In aggregate, the Company has raised a total of $13.5 million under the first and second tranches of the Offering.
“Closing this $13.5 million private placement marks an important milestone on our journey to become Canada’s leading organic cannabis company,” stated Jesse McConnell, CEO.
Each Unit is comprised of one common share of the Company (each, a “Common Share”) and one Common Share purchase warrant of the Company (each, a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $3.25 per Common Share at any time during the 12-month period following the closing date.
The securities issued under the Offering have a statutory hold period until September 30, 2020. The Company has applied to the Canadian Securities Exchange (the “CSE”) for listing approval for the Common Shares underlying the Units and Common Shares to be issued upon exercise of the Warrants.
The Company intends to use proceeds from the Offering for optimization of its Delta, BC facility (including a lights upgrade and outdoor grow), the launch of cannabis 2.0 products and for working capital and general corporate purposes.
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc., through its wholly owned subsidiary Vintages Organic Cannabis Company Inc., is a licensed producer focused on cultivating and selling organic certified, super-premium cannabis from its flagship 125,000 sq. ft. state-of-the-art hybrid-greenhouse located on a 20-acre property in Delta, BC, Canada. The Company is focused on achieving industry leading profitability through the development of the brand identity Simply BareTM Organic, that combines the sale of high-margin, super-premium organic products with low-cost sustainable production. The Company is currently ramping up to production capacity of 11,000 kg per year of organic certified and environmentally sustainable cannabis.
Chief Financial Officer
Phone: +1 (437) 929-1964
Email: [email protected]
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding the anticipated use of proceeds from the Second Tranche Offering and the Company’s belief that it will achieve an annual production run rate of approximately 11,000 kg of certified organic, super-premium and environmentally sustainable cannabis are “forward-looking statements”. Forward-looking information can be identified by the use of words such as “will” or variations of such words or statements that certain actions, events or results “will” be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. The forward-looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including that its capital needs will be as currently projected. Risks and uncertainties associated with forward looking information in this press release include, among others, information or statements concerning the Company’s expectations of financial resources available to fund operations; Rubicon Organics’ limited operating history and lack of historical profits; obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company’s ability to successfully execute its plans and intentions; the Company’s ability to obtain financing at reasonable terms though the sale of equity and/or debt commitments; the Company’s ability to attract and retain skilled staff; market competition; the products and technology offered by the Company’s competitors; that our current relationships with our suppliers, service providers and other third parties will be maintained; and the impact of the current global health crisis caused by the COVID-19 pandemic. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Although Rubicon Organics has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.Back to Top