Rubicon Organics Closes Final $2.0 Million Tranche of $13.5 Million Upsized Private Placement

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VANCOUVER, British Columbia, June 04, 2020 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (CSE: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics” or the “Company”) is pleased to announce that it has closed the second and final tranche of its previously announced upsized non-brokered private placement of 851,064 units of the Company (“Units”) at a price of $2.35 per Unit for aggregate gross proceeds of $2.0 million (together with the first tranche, the “Offering”).  In aggregate, the Company has raised a total of $13.5 million under the first and second tranches of the Offering.

“Closing this $13.5 million private placement marks an important milestone on our journey to become Canada’s leading organic cannabis company,” stated Jesse McConnell, CEO.

Each Unit is comprised of one common share of the Company (each, a “Common Share”) and one Common Share purchase warrant of the Company (each, a “Warrant”). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $3.25 per Common Share at any time during the 12-month period following the closing date.

The securities issued under the Offering have a statutory hold period until September 30, 2020. The Company has applied to the Canadian Securities Exchange (the “CSE”) for listing approval for the Common Shares underlying the Units and Common Shares to be issued upon exercise of the Warrants.

The Company intends to use proceeds from the Offering for optimization of its Delta, BC facility (including a lights upgrade and outdoor grow), the launch of cannabis 2.0 products and for working capital and general corporate purposes.

ABOUT RUBICON ORGANICS INC.

Rubicon Organics Inc., through its wholly owned subsidiary Vintages Organic Cannabis Company Inc., is a licensed producer focused on cultivating and selling organic certified, super-premium cannabis from its flagship 125,000 sq. ft. state-of-the-art hybrid-greenhouse located on a 20-acre property in Delta, BC, Canada. The Company is focused on achieving industry leading profitability through the development of the brand identity Simply Bare^TM Organic, that combines the sale of high-margin, super-premium organic products with low-cost sustainable production. The Company is currently ramping up to production capacity of 11,000 kg per year of organic certified and environmentally sustainable cannabis.