- Rubicon Organics (CSE:ROMJ) has received its final tranche of a non-brokered private placement that generated a total of C$13.5 million
- The final tranche comprised 851,064 units at a price of $2.35 each for gross proceeds of $2 million
- Each unit sold under the placement included one common share in the company and one common share purchase warrant
- The proceeds will be used to optimise the company’s facility in British Columbia and launch new cannabis products
- Rubicon Organics (ROMJ) is currently steady at $2.47 per share
Rubicon Organics (CSE:ROMJ) has received its final tranche of a non-brokered private placement that generated a total of C$13.5 million.
The placement was announced on May 27 this year, under which the company outlined its intentions to issue a total of 5.74 million units at a price of $2.35 each.
An initial tranche worth $11.5 million was then received on May 29, followed by a second and final tranche worth $2 million today.
Each unit was comprised of one common share in the company and one common share purchase warrant. The warrants entitle the holder to acquire an additional common share at a price of $3.25, exercisable over a period of 12 months from the date of closing.
All of the securities issued as part of the placement will be subject to a statutory hold period, expiring on September 30, 2020.
Jesse McConnell, CEO of Rubicon Organics, noted that the completion of the financing was a significant achievement.
“Closing this $13.5 million private placement marks an important milestone on our journey to become Canada’s leading organic cannabis company,” he said.
Rubicon Organics plans to use the proceeds generated under the placement to add further improvements to its facility in British Columbia, including lighting upgrades and an outdoor grow area.
A portion of the funds will also be used to launch new cannabis 2.0 products and for general working capital purposes.
The wholly owned facility was purchased in September 2017 and retrofitted in 2018 specifically for the cultivation of cannabis. It covers a total of 125,000 square feet, and was entirely licensed by Health Canada in February 2019.
Once fully-operational, the Delta facility is expected to produce approximately 11,000 kilograms of certified organic cannabis each year.
Rubicon Organics (ROMJ) is currently steady at $2.47 per share at 2:00pm EDT.