VANCOUVER, British Columbia, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) (“Rubicon Organics” or the “Company”) has successfully completed its first commercial-scale harvest of certified organic, super-premium cannabis at the Company’s flagship 125,000-square-foot hybrid greenhouse facility in Delta, B.C. The harvest passed all microbiology and contaminant testing to be fully compliant with Health Canada standards and has enabled the Company to submit its sales license amendment with Health Canada -- marking a significant milestone in the Company’s execution strategy as it moves towards brand launch in Canada.
“The success of our first commercial-scale harvest is proof that Rubicon Organics’ proprietary cultivation methods – developed over years of research and development – can grow fully compliant, exceptional quality, certified organic cannabis at scale in Canada,” stated Jesse McConnell, CEO of Rubicon Organics. “We are very proud of our dedicated cultivation team which has fully delivered against the design expectations and target yields of our hybrid facility in Delta. We are now moving down the path towards securing our sales license to bring high-quality, certified organic products directly to the market in the coming months.”
Rubicon Organics’ initial commercial-scale crop was planted in mid-June and harvested from the end of September to mid-October. The crop has passed analytical testing to ensure safety and compliance with Health Canada standards, which places stringent limits on the presence of heavy metals, pesticides, microorganisms, mold and other contaminants. The crop has now been dried, bulk packaged and will be entering the final packaging stage in preparation for brand launch.
Facility Update
Rubicon Organics’ fully licensed 125,000-square-foot facility in Delta has approximately 80,000 square feet of flowering canopy space divided into five climate-controlled compartments with LED lighting. The Company’s first commercial-scale crop was planted in and harvested from the first of these compartments. Construction and planting of the four remaining cultivation compartments are expected to be complete prior to the end of 2019.
As new compartments are completed, additional crops are planted in stages in order to achieve full production capacity which is estimated to be 11,000 kg per year. Once the facility is fully planted, the Company intends to maximize efficiencies and ensure a consistent supply of fresh flower through a perpetual harvest strategy that targets a harvest every 2.5 weeks.
Sales Amendment Update
Having now arrived at a saleable product, Rubicon Organics has initiated the application process for a sales license amendment with Health Canada in order to sell directly to provincial distributors. Dependent on Health Canada approval timelines, the Company expects to receive its sales license amendment in the first half of 2020.
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc. is a Licensed Producer focused on cultivating and branding 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.
The Company is currently ramping up to achieve a run rate of approximately 11,000 kg of certified organic, super-premium and environmentally sustainable cannabis in 2020 and on creating super-premium brands in Canada. 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. The Company also owns two award-winning U.S. cannabis brands: 1964 Supply Co.TM and Doctor & Crook Co.TM; and has exclusive licensing rights in Washington for iconic lifestyle and cannabis brand, Cookies.
CONTACT INFORMATION
Corporate:
Shirley Anthony
Director, Investor Relations
Phone: +1 (437) 929-1964
Email: ir@rubiconorganics.com
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.
