Rubicon Organics Announces Acceleration of Warrant Expiry Date
VANCOUVER, BRITISH COLUMBIA – Nov 16, 2020
Warrant acceleration may result in gross proceeds to the Company of up to $10.9 million
Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics” or the “Company”), a licensed producer focused on cultivating and selling organic certified and premium cannabis, announces that it has elected to accelerate the expiry date of the common share purchase warrants issued on August 23, 2019 (the “Warrants”) under the warrant indenture between Odyssey Trust Company (the “Warrant Agent”) and the Company dated August 21, 2019 (the “Warrant Indenture”).
"The exercise of these warrants allows Rubicon Organics to bolster its balance sheet and provides us additional capital to continue our rapid growth, particularly through offering new strains, brands and cannabis 2.0 products to the Canadian market. Our current expectation is that the Company will become operating cash flow positive in the first half of 2021 and, with all major capital projects complete, Rubicon Organics remains in a very strong financial position" said Jesse McConnell, Chief Executive Officer.
Accelerated Expiry Date
Pursuant to the terms of the Warrant Indenture, if the daily volume weighted average trading price of the Company’s shares on the TSX Venture Exchange equals or exceeds $3.80 for twenty (20) consecutive trading days (the “Acceleration Trigger”), the Company is entitled to accelerate the expiry date of the Warrants to a date thirty (30) days from the date notice of such acceleration is provided to holders of Warrants. The Company has delivered to holders of Warrants a notice of the occurrence of the Acceleration Trigger and its election to accelerate the expiry date of the Warrants to December 16, 2020 (the “Accelerated Expiry Date”).
Any Warrants that have not been exercised by 3:00 p.m. (Vancouver time) on December 16, 2020 will automatically be cancelled.
As of November 13, 2020, 3,117,000 Warrants remain outstanding. Each Warrant entitles the holder to purchase one common share of the Company at $3.50. If all outstanding Warrants are exercised, gross proceeds to the Company will total $10,909,500, however, there can be no assurance that any of the Warrants will be exercised prior to the Accelerated Expiry Date.
Warrant holders who wish to exercise their Warrants should contact their investment advisor and submit an exercise notice form to the Warrant Agent. The contact details for the Warrant Agent is as follows: Odyssey Trust Company, Suite 350, 300 5th Avenue S.W., Calgary, Alberta, T2P 3C4, Tel: 1-587-885-0960.
