Rubicon Organics Raises $20 Million Selling Units at $3.80

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Rubicon Organics Announces $20 Million Bought Deal Offering of Units

VANCOUVER, British Columbia, Feb. 18, 2021 (GLOBE NEWSWIRE) — Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics” or the “Company”) is pleased to announce that it has entered into an agreement with Raymond James Ltd., as co-lead agent and sole bookrunner, on behalf of a syndicate of underwriters co-led by Raymond James Ltd., BMO Capital Markets and Desjardins Securities Inc. (the “Co-Lead Underwriters”) and including Mackie Research Capital Corporation (collectively with the Co-Lead Underwriters, the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 5,263,158 units of the Company (“Units”) at a price of $3.80 per Unit for gross proceeds of $20,000,000 (the “Offering”). Each Unit is comprised of one common share (each a “Common Share”) and one-half Common Share purchase warrant (each such full warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common 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 on the TSX Venture Exchange is equal to or greater than $6.90 per Common Share.

The Company will grant the Underwriters an over-allotment option to increase the size of the Offering by up to 15% of the aggregate number of Units sold under the Offering, exercisable in whole or in part at any time up to 30 days after and including the closing date of the Offering, which may be exercised for Common Shares, Warrants or a combination thereof.

The Company intends to use the proceeds from the Offering for repayment of indebtedness and working capital.

The Units will be 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 will be 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 $2.0 million).

The Offering is expected to close on or about February 25, 2021 and is subject to market and other customary conditions, including approval of the TSX Venture Exchange, and the entering into of an underwriting agreement between the Company and the Underwriters. This press release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities in any jurisdiction. No securities may be sold nor may be offered prior to obtaining all the receipts for the final prospectus from each of the provinces of Canada (other than Quebec).


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™.

Original press release

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Published by NCV Newswire
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