Rubicon Organics Announces $6,000,000 Mortgage Financing Loan
VANCOUVER, March 20, 2019 /CNW/ - Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) ("Rubicon Organics" or the "Company") a super-premium, organic cannabis producer with operations in Canada, Washington and California, is pleased to announce that it, through a subsidiary, has agreed to terms of a $6,000,000 mortgage financing loan (the "Loan") from Romspen Investment Corporation. Subject to completion of certain conditions, the Company anticipates drawing its first advance under the Loan on March 22, 2019.
The Loan is for a term of 18 months, bears interest at twelve percent per annum, and is secured by a first ranking mortgage on the Company's state-of-the-art hybrid facility in Delta, BC (the "Property"). The Loan will be used to repay the current $3 million mortgage on the Property, pay fees and expenses related to the Loan, and to assist with certain construction costs associated with renovating the Property.
We are excited to complete this first tranche of a broader non-dilutive financing package
said Jesse McConnell, Co-Founder and CEO.
Upon completion of the broader financing package, Rubicon Organics expects to be funded to execute on our business plan to provide super-premium, certified organic cannabis products in Canada and for export to international markets.
Rubicon Organics Inc. ("Rubicon Organics" or the "Company) (CSE:ROMJ) (OTCQX:ROMJF) is a Licensed Producer focused on building super-premium organic cannabis brands* with operations in Canada, Washington and California. Rubicon Organics' flagship Canadian facility is a 125,000 sq. ft. state-of-the-art hybrid greenhouse with industry leading LED lighting and is located on a 20-acre property in Delta, British Columbia. The Company's Washington facility is a newly constructed, 40,000 sq. ft. hybrid greenhouse and extraction facility. Rubicon Organics has commenced production in both facilities with a combined Phase I capacity of 15,500 kg per year, including 4,500 kg leased to a Washington State licensed operator applying Rubicon Organics' proprietary organic cultivation methods*. The Company also owns two award-winning U.S. cannabis brands: 1964 Supply Co.TM in California and Doctor & Crook Co.TM in Washington.
* Organic certification pending from FVOPA
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Rubicon Organics' anticipated timing of drawing an advance under the Loan (if at all), the proposed use of Loan proceeds, and that Rubicon Organics expects to be funded to execute on its business plan to provide super-premium, certified organic cannabis products in Canada and for export to international markets are "forward-looking statements".
Forward-looking information can be identified by the use of words such as "anticipates", "will", "expects", or variations of such words or statements that certain actions, events or results "will", are "anticipated to", or "are expected" to be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. The forward looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including that its capital needs will be as currently projected and that the conditions to the Loan will be satisfied. Risks and uncertainties associated with the forward looking information in this press release include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing state, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to complete construction of its proposed facilities in a timely manner; engaging in activities which currently are illegal under U.S. federal law and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, particularly in California, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; Rubicon Organics' limited operating history and lack of historical profits; reliance on management; and the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Although Rubicon Organics has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.