Rubicon Organics Secures $10 Million in Credit Facilities

Rubicon Organics Secures $10 Million Credit Facilities

Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) is excited to share its latest financial development that signals a strong future ahead. The company, renowned for its commitment to cultivating and selling premium organic cannabis, has successfully entered into new credit agreements totaling C$10 million, enhancing its ability to support ongoing growth initiatives.

Details of the Credit Agreements

On November 28, 2024, Rubicon Organics formed credit facilities through agreements with Community Savings Credit Union and other lending partners. These credit facilities come with an amortization period of ten years, set to mature in five years, with a competitive interest rate of 6.75% per annum.

The secured nature of these facilities provides the company with first-ranking security interests in its current and future personal property, fortifying its financial standing significantly. The establishment of these facilities enables Rubicon Organics to efficiently manage its debts and enhance liquidity, which is critical in today's dynamic market.

Strategic Use of Funds

Proceeds from these credit facilities are earmarked at repaying a secured debenture owed to Green Island Investments Ltd., which amounts to US$8 million and is due to mature at the end of the year. This strategic maneuver aims to bolster the company’s financial health and ensure optimal capital management.

CFO Janis Risbin expressed her enthusiasm regarding this financial milestone, stating, "We are pleased to announce the establishment of our new Credit Facilities, as they underscore our commitment to strengthening our financial position and supporting our strategic growth initiatives. This move will allow us to invest in key projects that drive long-term value for our shareholders, positioning us to successfully navigate the evolving market landscape."

Support from Financial Partners

Community Savings Credit Union has played a critical role in this development. Mike Schilling, President and CEO, stated, "Community Savings is committed to supporting all our members in the Cannabis industry, large and small. We are delighted to partner with Rubicon on this milestone deal which will support their continued success."

About Rubicon Organics Inc.

Rubicon Organics is known globally as a leading brand in the premium organic cannabis sphere. The company operates under a vertically integrated model through its subsidiary, Rubicon Holdings Corp, which is a licensed producer dedicated to achieving industry-leading profitability. Rubicon Organics stands out with its diverse brand offerings, including the super-premium Simply Bare™ Organic, the premium 1964 Supply Co.™, Wildflower™ for cannabis wellness, and the mainstream Homestead Cannabis Supply™.

The quality of Rubicon's supply chain begins with responsible cultivation, processing, and branding, ensuring that all products are certified organic and sustainably produced. Their state-of-the-art facilities located in Delta, British Columbia, exemplify their commitment to excellence in the cannabis industry.

Contact Information

For additional information, please contact:
Margaret Brodie
CEO
Phone: +1 (437) 929-1964
Email: ir@rubiconorganics.com

Frequently Asked Questions

1. What are the new credit facilities announced by Rubicon Organics?

Rubicon Organics has secured C$10 million in new credit facilities to strengthen its financial position and support growth initiatives.

2. Who are the lenders involved in these credit agreements?

The credit agreements were formed with Community Savings Credit Union and other lending partners.

3. How will the funds from the credit facilities be used?

The funds will primarily be directed towards repaying an existing secured debenture to Green Island Investments Ltd. and to enhance liquidity.

4. What is Rubicon Organics known for?

Rubicon Organics is renowned as a global leader in premium organic cannabis products and is committed to sustainable and innovative cultivation practices.

5. How can I contact Rubicon Organics for more information?

You can contact Margaret Brodie at +1 (437) 929-1964 or via email at ir@rubiconorganics.com.

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