Rubicon Organics Inc ROMJF

Second Quarter 2021 Financial Results and Milestones

[Betteryear2]

VANCOUVER, British Columbia, Aug. 20, 2021 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics” or the “Company”), a licensed producer focused on cultivating and selling organic certified and premium cannabis, today reported its financial results for the second quarter ended June 30, 2021 (“Q2 2021”). All amounts are expressed in Canadian dollars.

“Our share of the premium cannabis segment in Canada remains strong and we remain the go to organic brand among consumers. With 44 SKUs across five brands, we can focus on meeting the rising demand from provincial distributors which is beginning to reflect both a return to normalized buying patterns and our new SKUs in high growth product categories. It is very important for us to emphasize Rubicon Organics’ success in getting its new products listed with major provincial distributors in the face of significant curtailments by these buyers. As 1964 Supply Co™ and Homestead Cannabis Supply™ in particular hit the market across new provinces in Q3 2021, we will be seeing the results of our extension in the premium and mainstream flower segments which represent large volume and incremental revenue pools for the Company,” said Jesse McConnell, Chief Executive Officer.

Q2 2021 Highlights:

• Earned $4.6 million of net revenue, an increase of $3.6 million versus the prior year and a $0.5 million sequential increase;
• Repaid $9.0 million in second mortgage loans;
• Issued an US$8 million principal amount secured debenture in connection with a debt financing transaction.
• Published the Company’s inaugural Environmental, Social and Governance Report;
• Completed company-wide restructuring and has achieved annualize savings of $2.6 million;
• Announced a Cannabis Purchase and Sale Agreement with the Yukon Liquor Corporation for the distribution of its portfolio of cannabis products to consumers in Yukon territory;
• Received its first direct purchase order from Manitoba Liquor & Lotteries;
• Received its first purchase order from Cannabis NB, New Brunswick’s provincial cannabis distributor and retailer; and
• Received initial purchase orders for its Simply Bare™ Organic live rosin solventless concentrate and PAX® pod products.

Highlights Subsequent to Q2 2021:

• Launch of 1964 Supply Co™ and Homestead Cannabis Supply™ across with new provincial listings obtained in BC, Alberta, Manitoba, Ontario and Saskatchewan;
• Granted a Research & Development License by Health Canada;
• Announced the creation of the Cannabis Cultivators of B.C. with leading cannabis producers Pure Sunfarms and Tantalus Labs; and
• Reduced foreign exchange (“FX”) risk associated with US$8 million secured debenture by placing FX swaps to fix the deliverable Canadian dollars on future principal and interest payments.

https://www.globenewswire.com/news-release/2021/08/20/2284053/0/en/Rubicon-Organics-Reports-Second-Quarter-2021-Financial-Results-and-Operational-Milestones.html