VANCOUVER, BRITISH COLUMBIA – July 16, 2019 — Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) (“Rubicon Organics” or the “Company”) is pleased to announce that it has received organic certification from the Fraser Valley Organics Producers Association (“FVOPA”) at its flagship 125,000-square-foot hybrid greenhouse facility in Delta, BC. As a result, the Company is now positioned to supply certified organic, super-premium cannabis grown at scale to a market where organic products are in high demand, short supply and priced at significant premiums.
“Organic cannabis is highly coveted in the medical and over-the-counter markets in North America and Europe,” said Jesse McConnell, Chief Executive Officer and Co-Founder of Rubicon Organics. “Due to a substantial lack of supply of high-quality cannabis in the marketplace, there is currently a 40% to 50% price premium for super-premium cannabis products and an additional 25% to 50% price premium for organic products in Canada. This is the market that Rubicon Organics is now well-positioned to serve.”
“Having organic certification from FVOPA is unequivocal validation of our proven, proprietary organic cultivation methodology which we expect will produce super-premium, certified organic cannabis at scale and at a competitive cost. For investors, this means the company expects to achieve industry-leading gross margins and profitability. For the consumer, Rubicon Organics will deliver a connoisseur-level experience with the cleanest and most terpene-rich products on the market.”
Rubicon Organics is currently one of just two cannabis companies in Canada to be certified by FVOPA, Canada’s preeminent certification body for organic operators. FVOPA’s rigorous certification program is compliant with International Organization for Standardization (ISO) 17065, Canadian Organic Standards and BC Certified Organic programs.
Rubicon Organics’ cannabis is grown in a proprietary 100% organic soil and fertilizer mix made in-house and developed over years of organic cannabis cultivation, research and development by the Company’s CSO, who also wrote the Certified Organic Cannabis Standard in Canada for FVOPA. Rare and semi-rare cannabis strains are grown without herbicides or pesticides in a sophisticated hybrid greenhouse environment with exposure to natural sunlight and a fully automated climate control system ensuring optimal growing conditions year-round.
The Company expects to begin selling branded super-premium, certified organic cannabis products in Canada in Q4 2019.
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc. is a Licensed Producer focused on cultivating certified organic, super-premium cannabis at its flagship 125,000 sq. ft. state-of-the-art hybrid greenhouse located on a 20-acre property in Delta, BC, 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.
In Canada, the Company is currently ramping up to produce approximately 11,000 kg of branded certified organic and super-premium cannabis in 2020. In the United States, the Company 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 to produce cannabis that is sold to a third-party super premium brand. The Company also has exclusive licensing rights in Washington for iconic lifestyle and super-premium cannabis brand, Cookies.
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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 Rubicon Organics’ anticipated gross margins and profitability, anticipated sales dates, proposed brand launches and path to market are “forward-looking statements”. Forward-looking information can be identified by the use of words such as “will” or variations of such word 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 the forward looking information in this press release include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing state, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to complete construction of its proposed facilities in a timely manner; engaging in activities which currently are illegal under U.S. federal law and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, particularly in California, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; Rubicon Organics’ limited operating history and lack of historical profits; reliance on management; and the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers. 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.