Rubicon Organics Provides Operational Update
July 14th, 2021
- 132% increase in the number of new products available from provincial distributors in Q3, 2021
- Simply BareTM Organic top organic brand in all major provinces and maintains leadership in premium category
- Premium brand 1964 Supply Co.TM has now been accepted in seven provinces
- Mainstream brand HomesteadTM has been accepted by five provincial distributors
VANCOUVER, British Columbia, July 14, 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, is pleased to provide an operational update covering the first half of 2021.
“We are now fully armed with a deep product portfolio that follows through on our good, better, best brand strategy and we are in an excellent position to capitalize on expected restocking orders, particularly as retailers in Ontario resume normal operations. In late Q2 we listed 25 new SKUs across three brands, for a total of 44 unique products in market that will become available to consumers this quarter. As always, we will remain a premium option in every segment we target,” said Jesse McConnell, Chief Executive Officer.
Notwithstanding limitations place on most retailers in the first half of 2021, many data points indicate that the Canadian cannabis market continues to grow at a high pace and re-stocking at new locations remains a significant opportunity in the coming months. For example, the latest data from Statistics Canada indicates that household spending on cannabis increased 29% over the prior year for the period ending Q1 20211. Furthermore, in Canada’s largest province, the Ontario Cannabis Store data indicates the cannabis market has grown 146% year-over-year for the three-month period ending Q2 2021 and 131% for H1 2021.
The Company believes that with retail locations increasing to approximately 879 as of June 2021, from 572 at the beginning of the year (54% growth) and 183 in the prior year (3x growth), Ontario still has significant growth potential.
The Company is also pleased to announce a market share update for its flagship Simply BareTM Organic super-premium brand for the first half of 20212. Highlights by major province include:
- Ontario: #1 organic brand in flower and pre-roll, and #5 premium brand in flower and pre-roll
- BC: #1 brand in both the organic and premium flower and pre-roll categories
- Quebec: #1 organic brand in flower and pre-roll, #1 brand in premium hash, and #3 brand in premium flower and pre-roll
- Alberta: #1 organic brand in flower and pre-roll, and #6 premium brand in flower and pre-roll
Corporate and Operational Highlights
Corporate and operational highlights in the first half of 2021 include:
- Closed a bought deal offering of 6,052,631 units for aggregate gross proceeds of $23.0 million;
- Issued US$8 million in debt on a two-year term at 6.5% interest per annum paid semi-annually;
- Entered into an agreement with The Valens Company (TSX:VLNS) for organic certified extraction services;
- Launched Wildflower CBD Topicals;
- Announced a Cannabis Purchase and Sale Agreement with Cannabis Yukon 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
- Published the Company’s inaugural Environmental, Social and Governance Report, which can be accessed here.
Simply BareTM Organic
10 new SKUs of Simply BareTM Organic have been launched in 2021, as follows: BC Organic Sour CKS, SFV OG Kush and Apple TFE hash products; BC Organic Blue Dream and Sour Cookies in a 7g flower format; BC Organic Platinum Punch in 3.5g flower and 3×0.5g Pre-rolls; 0.5g Pax Pods were introduced in BC Organic Sour CKS and Blue Dream strains; and 1g Live Rosin was launched in Ontario with our BC Organic Secret Strawberry Strain.
Rubicon Organics is especially pleased to report that its 1g Live Rosin sold out at the Ontario Cannabis Store within two weeks of arrival and reviews have been very encouraging.
1964 Supply Co.™
The Company’s 1964 Supply Co.TM premium brand, which was first launched in Quebec in January 2021 and introduced to New Brunswick in June 2021, has now also been accepted for listing in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.
In 2021, eight SKUs have been launched under this brand including: Blue Dream/Bleu Nuit and Sour Secret Strawberry/Fraise Sûre in flower formats and Pre-rolls; Apple Toffee and Congo in flower formats; and Bleu Nuit and Congo hash products.
Rubicon Organics’ HomesteadTM brand has now been accepted for listing in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan. HomesteadTM is a mainstream brand developed for the price conscious and avid cannabis consumer. HomesteadTM is the first product in Rubicon Organics’ suite of brands that includes at 28g flower product format.
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc. is becoming the global brand leader in 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 BareTM Organic, its super-premium concentrate brand LAB THEORYTM, its premium flower and hash brand 1964 Supply CoTM and mainstream brand HomesteadTM.
Chief Financial Officer
Phone: +1 (437) 929-1964
Email: [email protected]
The TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release.
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, and statements such as the Company’s belief that it is becoming the global brand leader in organic cannabis products, and the Company’s intention of achieving industry leading profitability are “forward-looking statements”. Forward-looking information can be identified by the use of words such as “will” or variations of such words 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 forward looking information in this press release include, among others, information or statements concerning the Company’s expectations of financial resources available to fund operations; Rubicon Organics’ limited operating history and lack of historical profits; obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company’s ability to successfully execute its plans and intentions; the Company’s ability to obtain financing at reasonable terms through the sale of equity and/or debt commitments; the Company’s ability to attract and retain skilled staff; market competition; the products and technology offered by the Company’s competitors; that our current relationships with our suppliers, service providers and other third parties will be maintained; and the impact of the current global health crisis caused by the COVID-19 pandemic. 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.
1 Household final consumption expenditure, quarterly, Canada (statcan.gc.ca)
2 Source: Market share information was obtained from industry data sources including the Ontario Cannabis Stores and Buddi during the period from January 1, 2021 until July 6, 2021.
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