VANCOUVER, British Columbia, Dec. 02, 2024 (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 announce that on November 28, 2024 it has entered into credit agreements (the "Credit Facilities”) pursuant to which it has borrowed an aggregate of C$10,000,000 from Community Savings Credit Union and another lender (the "Lenders”). Each of the Credit Facilities is for a term of five years, with an amortization period of ten years, and bears interest at a rate of 6.75% per annum.
The Credit Facilities are secured by, among others, first ranking security interests in all present and after-acquired personal property of the Company. The first ranking security interests rank pari passu as between the Lenders.
The Credit Facilities will be used by the Company to repay in full the US$8,000,000 principal amount secured debenture owed by the Company to Green Island Investments Ltd. ("Green Island”), which matures on December 31, 2024 (the "Green Island Debenture”). Further details of the Green Island Debenture are disclosed in the Company's news releases dated July 8, 2021 and June 16, 2022.
"We are pleased to announce the establishment of our new Credit Facilities, which underscores our commitment to strengthening our financial position and supporting our strategic growth initiatives. Our new Credit Facilities enhance our liquidity and provide us with the flexibility to invest in key projects that will drive long-term value for our shareholders. We believe that this strategic move positions us well to navigate the evolving market landscape and capitalize on future opportunities," said Janis Risbin, CFO.
Mike Schilling, President and CEO, Community Savings Credit Union: "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 Inc. is the global brand leader in premium organic cannabis products. The Company is vertically integrated through its wholly owned subsidiary Rubicon Holdings Corp, a licensed producer. Rubicon Organics is focused on achieving industry leading profitability through its premium cannabis flower, product innovation and brand portfolio management, including three flagship brands: its super-premium brand Simply Bare™ Organic, its premium brand 1964 Supply Co.™, its cannabis wellness brand Wildflower™ in addition to the Company's mainstream brand Homestead Cannabis Supply™.
The Company ensures the quality of its supply chain by cultivating, processing, branding and selling organic certified, sustainably produced, super-premium cannabis products from its state-of-the-art glass roofed facility located in Delta, BC, Canada.
CONTACT INFORMATION
Margaret Brodie
CEO
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, statements regarding Rubicon Organics' goal 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 word 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 the use of proceeds of the Credit Facilities. 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 federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including 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; the effect of capital market conditions and other factors on capital availability; the Company's ability to attract and retain skilled staff; 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.
