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Rubicon Organics Announces Closing of $23 Million Bought Deal Offering of Units
VANCOUVER, British Columbia, Feb. 26, 2021 (GLOBE NEWSWIRE) — Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics” or the “Company”) is pleased to announce that it has closed its previously announced bought deal public offering (the “Offering”) of 6,052,631 units of the Company (“Units”) for aggregate gross proceeds of approximately $23 million, including full exercise of the over-allotment option granted to the underwriters in connection with the Offering.
This financing is a clear validation by the investment community of our strategy to become global brand leaders by winning the premium cannabis segment first. The premium segment is taking share across Canada as product quality increases, and Rubicon Organics is leading the way.
Jesse McConnell, Chief Executive Officer
We expect our focused strategy will drive brand loyalty, profitability and significant shareholder value over the long-term. We will continue the aggressive launch of our innovation pipeline and our much stronger balance sheet now allows us to broaden the scope of our growth strategy from a position of financial strength.
Each Unit is comprised of one common share of the Company (each a “Unit Share”) and one-half common share purchase warrant (each such full warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one common share of the Company (a “Warrant Share”) at a price of $5.30 for a period of 36 months following the closing of the Offering, subject to an accelerated expiry if the 20 trading day volume-weighted average price of the common shares of the Company on the TSX Venture Exchange (the “TSXV”) is equal to or greater than $6.90 per common share.
The TSXV has conditionally approved the listing of the Unit Shares, the Warrants and the Warrant Shares . It is anticipated that the Warrants will begin trading on the TSXV on March 2, 2021 under the symbol “ROMJ.WT”.
The Offering was conducted by a syndicate of underwriters with Raymond James Ltd. as co-lead underwriter and sole bookrunner, together with BMO Nesbitt Burns Inc. and Desjardins Securities Inc. as co-lead underwriters, and Mackie Research Capital Corporation (collectively the “Underwriters”).
The Company intends to use the proceeds from the Offering for repayment of indebtedness and working capital.
The Units were offered by way of prospectus supplement filed in each of the provinces and territories of Canada (other than Quebec) to supplement the Company’s short form base shelf prospectus dated December 29, 2020.
The Underwriters were paid a cash commission equal to 6% of the gross proceeds of the Offering (including any gross proceeds raised on exercise of the Over-Allotment Option) and 3% of the gross proceeds of the Offering from purchasers on the president’s list of the Company (up to a maximum of aggregate gross proceeds of $3.5 million).
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc. is becoming the global brand leader in premium organic cannabis products. Through its wholly owned subsidiary Rubicon Holdings Corp, a licensed producer, the Company cultivates, processes and sells organic certified, sustainably produced, super-premium cannabis products from its state-of-the-art hybrid greenhouse located in Delta, BC, Canada. Rubicon Organics is focused on achieving industry leading profitability through a focus on innovation and the development of brands and cannabis 2.0 products, including its flagship super-premium brand Simply Bare™ Organic and its super-premium concentrate brand LAB THEORY™.
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