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.
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