Rubicon Organics said it has closed a non-brokered private placement with a strategic investor, Siwash Rock Investments, for aggregate gross proceeds of approximately $3 million.
The company intends to use the net proceeds to upgrade cultivation lighting and related greenhouse infrastructure at its Pacifica facility, with the balance of the net proceeds allocated to general working capital.
The lighting project is expected to increase the Pacifica facility’s annual production to 15,500 kg of cannabis. Together with Rubicon's Cascadia facility, annualized capacity is expected to reach 20,000 kg of cannabis by June 2027 grown in GACP-certified facilities, moving this target forward from a previous estimate by approximately one year.
"Demand for Rubicon's premium-quality cannabis in Canada and international markets has consistently exceeded our supply capacity. This investment allows us to expand total output from our existing assets by 29%, serve more unmet demand, lower per-unit costs and improve gross margin," said Margaret Brodie, CEO of Rubicon. "We are also pleased to welcome Ted Reid to the Rubicon story. Ted brings a strong record of building and scaling companies and creating shareholder value, and his capital and expertise will help accelerate Rubicon's next stage of expansion."
