RUBICON ORGANICS ANNOUNCES FURTHER UPSIZE OF PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT TO $13.5 MILLION
VANCOUVER, BRITISH COLUMBIA – May 27, 2020
Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) (“Rubicon Organics” or the “Company”) is pleased to announce that, due to a further increase in investor demand, it has increased its previously announced upsized non-brokered private placement offering to up to 5,744,681 units of the Company (“Units”) at a price of $2.35 per Unit for gross proceeds of up to $13.5 million (the “Offering”). Each Unit shall be comprised of one common share of the Company (each, a “Common Share”) and one Common Share purchase warrant of the Company (each, a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one Common Share at a price of $3.25 per Common Share at any time during the 12-month period following the closing date of the Offering.
“We are pleased to receive a significant $2.35 million investment from a sophisticated investor who we are proud to welcome to our shareholder base,” stated Jesse McConnell, CEO.
As previously announced, the CEO and a significant shareholder of the Company are participating, collectively, for approximately $2.1 million of the Offering. The Offering is scheduled to close on or about May 29, 2020 and is subject to a number of conditions. The securities to be issued under the Offering will have a statutory hold period of four months and one day from the closing date of the Offering. The Company will apply to the Canadian Securities Exchange (the “CSE”) for listing approval for the Common Shares underlying the Units and Common Shares to be issued upon exercise of the Warrants.
The Company intends to use the proceeds from the Offering for the optimization of its Delta, BC facility (including additional LED light upgrade and outdoor grow), accelerating the launch of cannabis 2.0 products and for working capital and general corporate purposes
