BRIEF: Rubicon Organics Closes Final Tranche of Private Placement

While the COVID-19 pandemic has substantially slowed down some activity in the capital markets, after the close on Thursday, Rubicon Organics Inc. (CSE:ROMJ) (OTC:ROMJF) announced that it had closed the second and final tranche of its previously announced upsized non-brokered private placement of units in the company.

Here’s what you need to know…

• Rubicon sold 851,064 units of the company at a price of $2.35 CAD per unit for aggregate gross proceeds of $2.0 million.
• Combined with the first tranche, Rubicon raised a total of $13.5 million under the offering.
• Each unit is comprised of one common share of Rubicon Organics Inc. and one common share purchase warrant of the company.
• Each warrant within each unit entitles the holder thereof to acquire one Rubicon Organics Inc. common share at a price of $3.25 CAD per 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 30th, 2020.
• Rubicon has applied to the Canadian Securities Exchange for listing approval for the common shares underlying the units and common shares to be issued upon exercise of the warrants.
• Rubicon Organics intends to use proceeds from this offering for “optimization” of its Delta, BC facility including a lights upgrade and outdoor grow, as well as for the launch of cannabis 2.0 products and more.
• Shares of CSE:ROMJ closed down slightly at $2.47 CAD per share on Thursday, June 4th, 2020.

Be sure to subscribe to cannabis stock updates here so you never miss an important update. To read the full Rubicon Organics Inc. press release, click here.