VANCOUVER, April 29, 2019 /CNW/ - Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) ("Rubicon Organics" or the "Company") a super-premium, organic cannabis producer with operations in Canada, Washington and California, is excited to announce the successful completion of the first commercial scale, organic harvest at the Company's newly constructed 40,000 sq. ft. hybrid facility in Ferndale, Washington (the "Washington Facility").
"This harvest has successfully demonstrated that Rubicon Organics' proprietary cultivation program and facilities are able to produce exceptionally high-quality organic cannabis at scale. We look forward to demonstrating this outstanding quality and output at our Canadian site on our promised timeline with the first harvest this summer" said Jesse McConnell, CEO and Co-Founder.
As a result of the successful harvest the Company has now initiated brand licensing discussions for the launch of the 1964 Supply Co.TM brand in Washington state.
The Washington Facility is a 40,000 sq. ft. high-tech, venlo-style greenhouse capable of producing 4,500 kilograms of cannabis per year. The Washington Facility is located on 16.6 acres of industrial land in Ferndale, Washington. The Company has leased the Washington Facility to an I-502 Tier 3-licensed tenant in compliance with the Washington State Liquor and Cannabis Board.
With a diverse genetic library on site, the Company's 125,000 sq. ft. high-tech facility in Delta, British Columbia (the "Delta Facility") is preparing for the first pilot harvest in June 2019. New personnel continue to be onboarded and additional hiring is underway to be prepared for the first commercial production harvest in Q3 2019.
All crops are being grown using Rubicon Organics' proprietary cultivation methods and will produce super-premium organic cannabis consistent with that demonstrated in the Washington Facility. The Company has completed the organic certification application with the Fraser Valley Organic Producers Association. Upon certification, Rubicon Organics will be one of only a few licensed producers in Canada to provide certified organic cannabis.
The Delta Facility has been specifically designed to utilize natural sunlight supplemented with industry leading LED technology allowing Rubicon Organics to produce organic cannabis at scale with exceptional quality. Once fully optimized, this facility will produce approximately 11,000 kilograms per year of super-premium organic cannabis.
The Company has entered into a term loan agreement (the "Loan") pursuant to which it has borrowed $3,355,000 from certain lenders (the "Lenders"). The Loan is for a term of 24 months and bears interest at a rate of twelve percent per annum. In connection with the Loan, the Company issued the Lenders a total of 671,000 common share purchase warrants ("Warrants"). Each Warrant entitles the Lender to acquire one common share of the Company (a "Common Share") at an exercise price of $4.50 per Common Share and expire April 25, 2022. The Loan will be used to facilitate operations of the Company's flagship Delta Facility and for working capital and other general corporate purposes.
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc. ("Rubicon Organics" or the "Company) (CSE:ROMJ) (OTCQX:ROMJF) is a Licensed Producer focused on building super-premium organic cannabis brands* with operations in Canada, Washington and California. Rubicon Organics' flagship Canadian facility is a 125,000 sq. ft. state-of-the-art hybrid greenhouse with industry leading LED lighting and is located on a 20-acre property in Delta, British Columbia. The Company's Washington facility is a newly constructed, 40,000 sq. ft. hybrid greenhouse and extraction facility. Rubicon Organics has commenced production in both facilities with a combined Phase I capacity of 15,500 kg per year, including 4,500 kg leased to a Washington 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 in California and Doctor & Crook Co.TM in Washington.
Organic certification pending from FVOPA
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' proposed use of the Loan proceeds, and the Company's expectation that this second tranche will further enable the Company to execute on its business plan to provide super-premium, certified organic cannabis products in Canada and for export to international markets are "forward-looking statements".
Forward-looking information can be identified by the use of words such as "anticipates", "will", "expects", or variations of such words or statements that certain actions, events or results "will", are "anticipated to", or "are expected" to 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.
SOURCE Rubicon Organics
For further information: Corporate: Margaret Brodie, Chief Financial Officer, Phone: +1 (437) 929-1964, Email: [email protected]; Media: Megan Cunningham, Gear Communications, Phone: +1 (781) 727-8462, Email: [email protected]