Rubicon Organics Cannabis Co. Secures $8M Loan At 6.5% Annually For Two Years

Organic cannabis company Rubicon Organics Inc. ROMJ ROMJF reported Thursday it has issued an $8 million principal amount secured debenture to Green Island Investment Ltd. in relation to a debt financing transaction.

The debenture bears an interest rate of 6.5% per year and has a two-year term. 

In relation to the loan financing, the Vancouver-based company issued 907,000 bonus warrants to the financier. Each warrant enables the holder thereof to buy one share of the company at a price of $4.00 per share in the upcoming three years since the issuance.

“We value the flexibility that cash provides, especially now as we are rolling out our innovation pipeline following a good, better, best strategy which now includes our premium flower and hash brand 1964 Supply Co™,” Jesse McConnell, CEO at Rubicon Organics stated. “Rubicon Organics continues to have a great deal of success securing orders for its product innovations and we remain in a very strong financial position as our product SKUs include new categories and we increase our territorial coverage across Canada.”

Recent Milestones 

Last month, Rubicon Organics revealed it has ensured the sale of its Simply Bare Organic live rosin solventless concentrate product across Ontario and British Columbia. In addition, it has also obtained a purchase order from a Saskatchewan-based distributor for its Pax Era and Pax Era Pro vaporizer pods under the Simply Bare Organic brand.

These orders marked the Simply Bare Organic brand’s entry in the Canadian cannabis market across five product categories – dry flower, pre-rolls, concentrates, hash and vaporizer products.

Price Action 

Rubicon Organic’s shares closed Wednesday market session 0.64% higher at $1.95 per share.

Photo: Courtesy of Kimzy Nanney on Unsplash