Core Viewpoint - Rubicon Organics Inc. has successfully closed a non-brokered private placement offering, raising approximately 0.44 per unit [1][2]. Group 1: Offering Details - Each unit consists of one common share and one-half of a common share purchase warrant, with warrants priced at 100,467 and issued 228,335 finder warrants, also exercisable at 1.5 million in gross proceeds [5]. - The participation of Board members is classified as a related party transaction, with the company relying on exemptions from formal valuation and minority shareholder approval requirements [5]. Group 3: Use of Proceeds - The net proceeds from the offering will be allocated for start-up and acquisition costs of the Hope Facility, pre-roll automation, capital investments, and general working capital [6]. - If the acquisition of the Hope Facility does not proceed, the funds may be redirected to other projects or working capital needs [6]. Group 4: Ownership Changes - Following the offering, Jesse McConnell's ownership increased from 21.13% to approximately 18.65% of the undiluted common shares outstanding [8][9]. - McConnell's total holdings now include 12,745,118 common shares, 325,000 stock options, 450,000 restricted share units, 140,459 deferred share units, and 250,000 warrants [9]. Group 5: Company Overview - Rubicon Organics Inc. is a leader in premium organic cannabis products, vertically integrated through its subsidiary Rubicon Holdings Corp [12]. - The company focuses on profitability through its premium cannabis flower and brand management, featuring brands like Simply Bare™ Organic and Wildflower™ [12][13].
Rubicon Organics Announces Closing of Private Placement Offering under the Listed Issuer Financing Exemption
GlobeNewswire·2025-05-07 22:55