Latest news with #HopeFacility
Associated Press
6 days ago
- Business
- Associated Press
MediPharm Labs' Board Continues Value Destruction for Shareholders with Sale of Hope Facility
Complete Incompetence at the Board Level Results in Fire Sale of Treasured MediPharm Asset, the Hope Facility, to a Competitor Hope Facility was One of Canada's Best Cultivation Assets Before it was Acquired by MediPharm, Grossly Mismanaged, and Ultimately Shut Down in 2024 MediPharm Labs' Board is Pursuing its Worst Deal Yet: A Highly Dilutive NO CASH Sale of the Remaining Company Apollo has a Concrete and Achievable Plan to Drive MediPharm's Share Price from Nearly $0.06 to Over $1.00, Restoring Value to its Loyal Shareholders SHAREHOLDERS ARE URGED TO VOTE THEGOLDCARD 'FOR' APOLLO CAPITAL'S SIX DIRECTOR NOMINEES AND NOT VOTE MEDIPHARM's GREEN CARD TORONTO, June 06, 2025 (GLOBE NEWSWIRE) -- Apollo Technology Capital Corporation ('Apollo Capital'), one of MediPharm Labs' ('MediPharm') largest investors, warns MediPharm shareholders that the Company's current leadership is continuing its pursuit of value destructive M&A, with the ultimate goal of a non-cash dilutive sale of the entire company. A sale of the Company which would trigger over $5M in change of control and other payments to current management. 'It's a travesty for shareholders to have what is believed to be a $12M asset sold for just $4.5M, likely netting shareholders less than $4M after fees and expenses. Worse still, the acquirer will wisely use the facility to produce cannabis for export that will directly compete with MediPharm in Europe,' says Regan McGee of Apollo Capital. 'Yesterday's fire sale announcement makes it crystal clear that MediPharm's Board has no actual value creation strategy, just a desire to sell off MediPharm's assets at shareholders' expense to keep paying themselves at 500% above market norms. Is MediPharm pursuing growth facilities as a strategy or not? Is the Napanee facility the next fire sale we will see to a competitor?' questions Regan McGee of Apollo Capital. Apollo expects the scaling of MediPharm's Napanee facility to cost shareholders significantly more than what the buyer of the Hope Facility will spend to achieve real profitability. Apollo expects the scaling of MediPharm's Napanee facility to cost between $3 million and $5 million and take 12 to 18 months to generate revenue. Apollo notes MediPharm's management team does not have cultivation experience, which could result in millions of investment dollars needed before it provides a return, if ever. The Hope Facility, formerly known as CannaFarms, was built by the highly respected Laflamme family to be one of the first licensed facilities in Canada. As exceptional visionaries, the Laflamme family built a world-class facility at immense personal cost to service patients in need, including military veterans. After nearly a decade of strong operational success as a positive driver for the community, MediPharm leadership not only failed to realize the value of its acquisition, but handed its assets to a competitor for well below market value. This sale is a tragic outcome for MediPharm shareholders. CEO David Pidduck has sold off MediPharm's Hope. Apollo Capital asks: Apollo Capital has invested significant capital into MediPharm and nominated highly qualified director candidates who can drive the urgent change needed and propel share price over $1.00. For more information, see our strategic five-pillar plan at Apollo urges shareholders to save their investments and vote the GOLD CARD by June 13, 2025. Shareholders are urged to NOT sign or return the green proxy cards sent by the Company. Contacts For Shareholders: Carson Proxy North American Toll-Free Phone: 1-800-530-5189 Local or Text Message: 416-751-2066 (collect calls accepted) E: [email protected] For Media: [email protected] This solicitation is being made by and on behalf of the Concerned Shareholder, who, as of the date of this Circular, beneficially owns or controls, directly and indirectly through its wholly-owned subsidiary, Nobul Technologies Inc., 12,491,500 common shares of the Company ('Common Shares'), representing approximately 3% of the total Common Shares issued and outstanding, and not by the management of the Company ('Management'). Legal Disclosures Information in Support of Public Broadcast Exemption under Canadian Law In connection with the annual general and special meeting (the 'Annual Meeting') of shareholders of MediPharm, Apollo Capital has filed an amended and restated dissident information circular dated May 15, 2025 (the 'Circular'), as amended and supplemented by an addendum to the Circular subsequently filed by the Concerned Stakeholder dated June 4, 2025 (the 'Addendum' and together with the Circular, the 'Amended Circular'), each in compliance with applicable corporate and securities laws. The Concerned Stakeholder has provided in, or incorporated by reference into, this press release the disclosure required under section 9.2(4) of NI 51-102 – Continuous Disclosure Obligations ('NI 51-102') and the corresponding exemption under the Business Corporations Act (Ontario), and has filed the Amended Circular, available under MediPharm's profile on SEDAR+ at The Amended Circular contains disclosure prescribed by applicable corporate law and disclosure required under section 9.2(6) of NI 51-102 in respect of the Concerned Stakeholder's director nominees, in accordance with corporate and securities laws applicable to public broadcast solicitations. The Amended Circular is hereby incorporated by reference into this press release and is available under MediPharm's profile on SEDAR+ at The registered office of the Company is 151 John Street, Barrie, Ontario, Canada L4N 2L1. SHAREHOLDERS OF MEDIPHARM ARE URGED TO READ THE AMENDED CIRCULAR CAREFULLY BECAUSE IT CONTAINS IMPORTANT INFORMATION. Investors and shareholders are able to obtain free copies of the Amended Circular and any amendments or supplements thereto and further proxy circulars at no charge under MediPharm's profile on SEDAR+ at In addition, shareholders are also able to obtain free copies of the Amended Circular and other relevant documents by contacting the Concerned Stakeholder's proxy solicitor, Carson Proxy Advisors Ltd. ('Carson Proxy') at 1-800-530-5189, local (collect outside North America): 416-751-2066 or by email at [email protected]. Proxies may be revoked in accordance with subsection 110(4) of the Business Corporations Act (Ontario) by a registered shareholder of Company shares: (a) by completing and signing a valid proxy bearing a later date and returning it in accordance with the instructions contained in the accompanying form of proxy; (b) by depositing an instrument in writing executed by the shareholder or by the shareholder's attorney authorized in writing; (c) by transmitting by telephonic or electronic means a revocation that is signed by electronic signature in accordance with applicable law, as the case may be: (i) at the registered office of the Company at any time up to and including the last business day preceding the day the Annual Meeting or any adjournment or postponement of the Annual Meeting is to be held, or (ii) with the chair of the Annual Meeting on the day of the Annual Meeting or any adjournment or postponement of the Annual Meeting; or (d) in any other manner permitted by law. In addition, proxies may be revoked by a non-registered holder of Company shares at any time by written notice to the intermediary in accordance with the instructions given to the non-registered holder by its intermediary. It should be noted that revocation of proxies or voting instructions by a non-registered holder can take several days or even longer to complete and, accordingly, any such revocation should be completed well in advance of the deadline prescribed in the form of proxy or voting instruction form to ensure it is given effect in respect of the Annual Meeting. The costs incurred in the preparation and mailing of any circular or proxy solicitation by the Concerned Stakeholder and any other participants named herein will be borne directly and indirectly by Apollo Capital. However, to the extent permitted under applicable law, Apollo Capital intends to seek reimbursement from the Company of all expenses incurred in connection with the solicitation of proxies for the election of its director nominees at the Annual Meeting. This press release and any solicitation made by the Concerned Stakeholder is, or will be, as applicable, made by such parties, and not by or on behalf of the management of the Company. Proxies may be solicited by proxy circular, mail, telephone, email or other electronic means, as well as by newspaper or other media advertising and in person by managers, directors, officers and employees of the Concerned Stakeholder who will not be specifically remunerated therefor. In addition, the Concerned Stakeholder may solicit proxies by way of public broadcast, including press release, speech or publication and any other manner permitted under applicable Canadian laws, and may engage the services of one or more agents and authorize other persons to assist it in soliciting proxies on their behalf. Apollo Capital has entered into an agreement with Carson Proxy for solicitation and advisory services in connection with the solicitation of proxies by the Concerned Stakeholder for the Annual Meeting, for which Carson Proxy will receive a fee from Apollo Capital not to exceed $250,000, together with reimbursement for reasonable and out-of-pocket expenses. Apollo Capital has also engaged Gasthalter & Co. LP ('G&Co') to act as communications consultant to provide the Concerned Stakeholder with certain communications, public relations and related services, for which G&Co will receive, from Apollo Capital, a minimum fee of US$75,000 in addition to a performance fee of US$250,000 in the event that the Concerned Stakeholder's nominees make up a majority of the board of directors of MediPharm (the 'Board') following the Annual Meeting, plus excess fees, related costs and expenses. Anteris Advisors, LLC ('Anteris') has also been retained by Apollo Capital to act as strategic consultant to provide the Concerned Stakeholder with certain activism strategy, material creation and strategic communications services, for which Anteris will receive, from Apollo Capital, a minimum fee of US$100,000 in addition to a success fee of US$100,000 in the event that one or more of the Concerned Stakeholder's nominees are appointed or elected to the Board following the Annual Meeting or as a result of any settlement or arrangement, plus excess fees, related costs and expenses. No member of the Concerned Stakeholder nor any of their respective associates or affiliates has or has had any material interest, direct or indirect, in any transaction since the beginning of the Company's last completed financial year or in any proposed transaction that has materially affected or will or would materially affect the Company or any of the Company's affiliates. No member of the Concerned Stakeholder nor any of their respective associates or affiliates has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Annual Meeting, other than setting the number of directors and the election of directors to the Board. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward‐looking statements. All statements contained in this filing that are not clearly historical in nature or that necessarily depend on future events are forward‐looking, and the words 'anticipate,' 'believe,' 'expect,' 'estimate,' 'plan,' and similar expressions are generally intended to identify forward‐looking statements. These statements are based on current expectations of the Concerned Stakeholder and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. All forward-looking statements contained herein are made only as of the date hereof and the Concerned Stakeholder disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Concerned Stakeholder hereafter becomes aware, except as required by applicable law. Hashtags: #ShareholderActivism #CorporateGovernance #InvestorProtection #Investor Alert #Investor Fraud #FinancialRegulation #CorporateCrime #FinancialCrime #HomelandSecurity #DHS #OpioidCrisis #OpioidEpidemic #OpioidLitigation #OpioidVictims #BMO #DEA #ONDCP
Hamilton Spectator
28-05-2025
- Business
- Hamilton Spectator
Rubicon Organics Reports Q1 2025 Financial and Operating Results
VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) — Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ('Rubicon Organics' or the 'Company') is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, today reported its financial results for the three months ended March 31, 2025 ('Q1 2025'). All amounts are expressed in Canadian dollars. 'We're proud to deliver another strong quarter of revenue growth and profitability. Rubicon is cementing its leadership in premium organic cannabis through innovation, disciplined execution, and brand trust,' said Margaret Brodie, CEO. 'With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation.' 'With 39% year-over-year revenue growth and positive Adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline,' said Glen Ibbott, Interim CFO. 'Our strong first quarter results, along with a robust balance sheet, and our recent capital raise, provide the foundation to support our expansion while maintaining financial flexibility.' Q1 2025 and Subsequent Highlights: Who We Are Rubicon Organics is a Canadian leader in premium, certified organic cannabis. With a vertically integrated model and strong national distribution, the company is scaling a house of trusted, high-performing brands including Simply Bare™ Organics, 1964 Supply Co.™, Wildflower™, and Homestead Cannabis Supply™. The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q1 2025 revenue up 39% year-over-year and positive Adjusted EBITDA for the fourth consecutive quarter and for eight of the last nine quarters. The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the planned acquisition of the Hope Facility which will expand production capacity by over 40% and support future growth in both domestic and export markets. With proprietary genetics, award-winning products, and certifications enabling international distribution, Rubicon is positioned at the forefront of the premium cannabis segment. As the Canadian market rationalizes and global demand for high-quality cannabis increases, Rubicon's disciplined execution, brand equity, and consumer loyalty set it apart. The company is well-capitalized following a recent $4.5M financing and is on track for continued revenue and Adjusted EBITDA expansion. Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential. Where We Are Going: 2025 Outlook Securing Additional Premium Quality Supply With growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility and are in the trial stage of evaluating additional lighting at site. In order to increase our supply of premium flower, we are acquiring the Hope Facility to significantly expand our annual production capacity, adding an annual production capacity of 4,500 kg, representing more than a 40% increase compared with our current annual production capacity from the Delta Facility, bringing total annual production capacity to 15,500 kg of premium cannabis. On May 21, 2025, we announced the removal of all conditions precedent related to the purchase and sale agreement for the Hope Facility. This acquisition is expected to close in Q2 2025. Pending licensing timing expected sometime in the summer, we expect to be running at full capacity by the end of the year. While we plan to outlay just over $3 million in operating startup costs during 2025, we do not expect revenue contribution until 2026. Our 2024 net revenue growth was driven through strategic partnerships with co-manufacturers and contract growers and these arrangements are expected to provide up to 2,000 kgs of incremental biomass to our business in 2025. We plan to continue to collaborate with our trusted partners and explore additional partnerships as we strive to meet the growing demand for our high-quality premium products. Building Trust with our Customers in Canada We are committed to the growing Canadian cannabis market and to being a trusted partner for our customers—including provincial distributors, retailers, and consumers. As the Canadian customers face increasing competition from international demand, we have seen many mainstream and premium licensed producers shifting their sales abroad. We see this as a prime opportunity to further strengthen our brand presence in Canada. With SKU rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space. At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them. Looking ahead, we anticipate a continued highly competitive retail landscape. However, Rubicon's strong brand recognition, consumer loyalty, high supplier ratings, and strategic positioning provide a solid foundation for long-term success in Canada. Genetics We possess unique intellectual property in cannabis genetics, which we consider a critical asset in maintaining our position as a leading innovator within the industry. Our extensive genetics library is central to our strategy of delivering consistent, high-quality genetics and new product offerings for the premium and super-premium markets. We view this as a significant competitive advantage and plan to launch exciting new genetics throughout 2025. To date, we have launched BC Organic Pink Drip and BC Organic Sunset Runtz under the Simply Bare brand. International Our strong reputation in Canada has attracted an increasing number of inquiries from international medical cannabis buyers. The international cannabis market has experienced significant growth in recent years, with continued expansion anticipated. While the market is still in the early stages of adopting premium cannabis products, we aim to meet small amounts of the international demand with a test and learn strategy in 2025 making sure to meet our Canadian customer needs as a priority. The Company holds the necessary certifications for international exports and made its inaugural international test shipment in the first quarter of 2025. Financial Growth For 2025, we are forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility (the 'Hope Costs'), driven by our ongoing expansion and strategic initiatives. While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved like-for-like Adjusted EBITDA will position us for long-term success and value creation. 2025 Results of Operations: Conference Call The Company will be hosting a conference call to discuss Q1 2025 results on Wednesday, May 28, 2025. Conference call details are as follows: CONTACT INFORMATION Margaret Brodie CEO Phone: +1 (437) 929-1964 Email: ir@ The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release. Non-GAAP Financial Measures This press release contains certain financial performance measures that are not recognized or defined under IFRS ('Non-GAAP Measures') including, but not limited to, 'Adjusted EBITDA'. As a result, this data may not be comparable to data presented by other companies. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company as well as its liquidity. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For more information, please refer to the 'Selected Financial Information' section in the MD&A for the year ended December 31, 2024, which is available on SEDAR+ at . Adjusted EBITDA Below is the Company's quantitative reconciliation of Adjusted EBITDA calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three months ended March 31, 2025, March 31, 2024, and December 31, 2024. 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' goal of achieving industry leading profitability are 'forward-looking statements'. Forward-looking information can be identified by the use of words such as 'will' or variations of such word or statements that certain actions, events or results 'will' 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 the impact on revenue of new products and brands entering the market, and the timing of achieve Adjusted EBITDA1 profitability and cashflow positive. 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 federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including 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; and those factors identified under the heading 'Risk Factors' in Rubicon Organic's annual information form dated April 1, 2025 filed with Canadian provincial securities regulatory authorities. 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. We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about: optimizing yield, achieving revenue growth, increasing gross profit, operating cashflow and Adjusted EBITDA1 profitability. Even though the management of Rubicon Organics believes that the assumptions made, and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, changes in assumptions, new information or for any other reason except as required by law. 1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Selected Financial Information for details on the Adjusted EBITDA calculation. 2 All retail data is sourced from Hifyre as at March 31, 2025 for current year and as at March 31, 2024 for prior year
Yahoo
28-05-2025
- Business
- Yahoo
Rubicon Organics Reports Q1 2025 Financial and Operating Results
Achieved net revenue of $12.4 million, representing a 39.2% increase compared to the same quarter in prior year Generated Adjusted EBITDA1 of $0.7 million, an improvement of $1.1 million year-over-year Removed conditions precedent for the purchase of the Hope Facility, advancing strategic expansion plans Completed a private placement for aggregate gross proceeds of $4.5 million VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ('Rubicon Organics' or the 'Company') is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, today reported its financial results for the three months ended March 31, 2025 ('Q1 2025'). All amounts are expressed in Canadian dollars. 'We're proud to deliver another strong quarter of revenue growth and profitability. Rubicon is cementing its leadership in premium organic cannabis through innovation, disciplined execution, and brand trust,' said Margaret Brodie, CEO. 'With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation.' "With 39% year-over-year revenue growth and positive Adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline,' said Glen Ibbott, Interim CFO. 'Our strong first quarter results, along with a robust balance sheet, and our recent capital raise, provide the foundation to support our expansion while maintaining financial flexibility.' Q1 2025 and Subsequent Highlights: Achieved net revenue of $12.4 million, a 39.2% increase from the comparative prior year quarter Adjusted EBITDA1 of $0.7 million Achieved national market share of 2.0%2 in flower and pre-rolls, 5.1%2 in premium flower and pre-rolls, 14.7%2 in resin vapes, #52 overall for edibles with 26.7%2 in premium edibles, and Wildflower continues to be the #12 topical brand in Canada at 26.6%2 Removed remaining conditions for the Hope Facility acquisition with expected close in the near term, adding approximately 4,500 kgs of annual premium quality production, a 40% increase to the Company's capacity, with revenue expected in the first half of 2026 and full capacity run rate achieved by the end of 2026. Completed a private placement for aggregate gross proceeds of $4.5 million Received certification of compliance with GACP standards and completed first shipment to Europe Won Standard Producer of the Year at Grow Up awards in May 2025 Named industry veteran Glen Ibbott as Interim Chief Financial Officer Who We Are Rubicon Organics is a Canadian leader in premium, certified organic cannabis. With a vertically integrated model and strong national distribution, the company is scaling a house of trusted, high-performing brands including Simply Bare™ Organics, 1964 Supply Co.™, Wildflower™, and Homestead Cannabis Supply™. The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q1 2025 revenue up 39% year-over-year and positive Adjusted EBITDA for the fourth consecutive quarter and for eight of the last nine quarters. The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the planned acquisition of the Hope Facility which will expand production capacity by over 40% and support future growth in both domestic and export markets. With proprietary genetics, award-winning products, and certifications enabling international distribution, Rubicon is positioned at the forefront of the premium cannabis segment. As the Canadian market rationalizes and global demand for high-quality cannabis increases, Rubicon's disciplined execution, brand equity, and consumer loyalty set it apart. The company is well-capitalized following a recent $4.5M financing and is on track for continued revenue and Adjusted EBITDA expansion. Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential. Where We Are Going: 2025 OutlookWith growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility and are in the trial stage of evaluating additional lighting at site. In order to increase our supply of premium flower, we are acquiring the Hope Facility to significantly expand our annual production capacity, adding an annual production capacity of 4,500 kg, representing more than a 40% increase compared with our current annual production capacity from the Delta Facility, bringing total annual production capacity to 15,500 kg of premium cannabis. On May 21, 2025, we announced the removal of all conditions precedent related to the purchase and sale agreement for the Hope Facility. This acquisition is expected to close in Q2 2025. Pending licensing timing expected sometime in the summer, we expect to be running at full capacity by the end of the year. While we plan to outlay just over $3 million in operating startup costs during 2025, we do not expect revenue contribution until 2026. Our 2024 net revenue growth was driven through strategic partnerships with co-manufacturers and contract growers and these arrangements are expected to provide up to 2,000 kgs of incremental biomass to our business in 2025. We plan to continue to collaborate with our trusted partners and explore additional partnerships as we strive to meet the growing demand for our high-quality premium are committed to the growing Canadian cannabis market and to being a trusted partner for our customers—including provincial distributors, retailers, and consumers. As the Canadian customers face increasing competition from international demand, we have seen many mainstream and premium licensed producers shifting their sales abroad. We see this as a prime opportunity to further strengthen our brand presence in Canada. With SKU rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space. At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them. Looking ahead, we anticipate a continued highly competitive retail landscape. However, Rubicon's strong brand recognition, consumer loyalty, high supplier ratings, and strategic positioning provide a solid foundation for long-term success in possess unique intellectual property in cannabis genetics, which we consider a critical asset in maintaining our position as a leading innovator within the industry. Our extensive genetics library is central to our strategy of delivering consistent, high-quality genetics and new product offerings for the premium and super-premium markets. We view this as a significant competitive advantage and plan to launch exciting new genetics throughout 2025. To date, we have launched BC Organic Pink Drip and BC Organic Sunset Runtz under the Simply Bare strong reputation in Canada has attracted an increasing number of inquiries from international medical cannabis buyers. The international cannabis market has experienced significant growth in recent years, with continued expansion anticipated. While the market is still in the early stages of adopting premium cannabis products, we aim to meet small amounts of the international demand with a test and learn strategy in 2025 making sure to meet our Canadian customer needs as a priority. The Company holds the necessary certifications for international exports and made its inaugural international test shipment in the first quarter of 2025, we are forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility (the 'Hope Costs'), driven by our ongoing expansion and strategic initiatives. While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved like-for-like Adjusted EBITDA will position us for long-term success and value creation. 2025 Results of Operations: Three months ended March 31, 2025$ March 31, 2024$ Net revenue 12,376,056 8,890,417 Production costs 2,901,783 2,692,692 Inventory expensed to cost of sales 5,368,642 3,737,334 Inventory written off or provided for 318,278 266,039 Gross profit before fair value adjustments 3,787,353 2,194,352 Gross profit % before fair value adjustments 31% 25% Fair value adjustments to cannabis plants, inventory sold, and other charges 439,650 164,252 Gross profit 4,227,003 2,358,604 Operating expenses 4,337,795 4,097,090 Profit / (loss) from operations (110,792 ) (1,738,486 ) Other expenses 211,272 153,856 Net profit / (loss) for the period (322,064 ) (1,892,342 ) Net profit / (loss) per share, basic (0.01 ) (0.03 ) Weighted average number of shares outstanding, basic 58,608,210 56,662,430 March 31, 2025 $ December 31, 2024$ Cash and cash equivalents 7,780,884 9,857,264 Accounts receivable 5,672,723 5,828,001 Inventories 12,377,580 10,735,739 Other current assets 4,269,347 4,230,818 Total current assets 30,100,534 30,651,822 Property, plant and equipment 22,869,365 23,493,973 Other non-current assets 2,447,643 2,465,526 Total assets 55,417,542 56,611,321 Accounts payable and accrued liabilities 8,083,309 9,263,231 Current portion of loans and borrowings 1,324,419 1,321,678 Other current liabilities 122,033 121,661 Total current liabilities 9,529,761 10,706,570 Non-current portion of loans and borrowings 8,297,436 8,478,439 Other non-current liabilities 6,151 24,151 Total liabilities 17,833,348 19,209,160 Total shareholders equity 37,584,194 37,402,161 Working capital 20,570,773 19,945,252 Three months ended March 31, 2025$ March 31, 2024$ Changes in non-cash working capital items (1,646,116 ) (423,346 ) Other operating activities 683,895 (435,811 ) Cash used in operating activities (962,221 ) (859,157 ) Purchase of property, plant and equipment (731,081 ) (384,004 ) Cash used in investing activities (731,081 ) (384,004 ) Principal and interest paid (355,869 ) (385,800 ) Other financing activities (24,801 ) (17,395 ) Cash used in financing activities (380,670 ) (403,195 ) Effect of exchange rate changes on cash (2,408 ) (16,699 ) Increase (decrease) in cash during the period (2,076,380 ) (1,663,055 ) Cash, beginning of period 9,857,264 9,784,190 Cash, end of period 7,780,884 8,121,135 Conference Call The Company will be hosting a conference call to discuss Q1 2025 results on Wednesday, May 28, 2025. Conference call details are as follows: Time: 7:00 AM PT / 10:00 AM ET Conference ID: 34244 Local dial-in: +1 (289) 514 5100 Toll Free N. America: +1 (800) 717 1738 Webcast: Rubicon Organics Q1 2025 Earnings Call RegistrationCONTACT INFORMATION Margaret BrodieCEOPhone: +1 (437) 929-1964Email: ir@ The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release. Non-GAAP Financial Measures This press release contains certain financial performance measures that are not recognized or defined under IFRS ('Non-GAAP Measures') including, but not limited to, 'Adjusted EBITDA'. As a result, this data may not be comparable to data presented by other companies. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company as well as its liquidity. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For more information, please refer to the 'Selected Financial Information' section in the MD&A for the year ended December 31, 2024, which is available on SEDAR+ at Adjusted EBITDA Below is the Company's quantitative reconciliation of Adjusted EBITDA calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three months ended March 31, 2025, March 31, 2024, and December 31, 2024. Three months ended March 31,2025 March 31, 2024 December 31,2024 $ $ $ Profit (loss) from operations (110,792 ) (1,738,486 ) 292,368 IFRS fair value accounting related to cannabis plants and inventory (439,650 ) (164,252 ) (54,271 ) (550,442 ) (1,902,737 ) 238,097 Depreciation and amortization 764,237 776,680 852,366 Share-based compensation expense 504,097 702,846 538,575 Adjusted EBITDA* 717,892 (423,212 ) 1,629,038 *Included in Adjusted EBITDA in the three months ended March 31, 2025, is $0.2 million of one-time costs incurred for the ERP implementation projectCautionary 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' goal of achieving industry leading profitability are "forward-looking statements". Forward-looking information can be identified by the use of words such as 'will' or variations of such word or statements that certain actions, events or results "will" 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 the impact on revenue of new products and brands entering the market, and the timing of achieve Adjusted EBITDA1 profitability and cashflow positive. 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 federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including 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; and those factors identified under the heading "Risk Factors" in Rubicon Organic's annual information form dated April 1, 2025 filed with Canadian provincial securities regulatory authorities. 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. We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about: optimizing yield, achieving revenue growth, increasing gross profit, operating cashflow and Adjusted EBITDA1 profitability. Even though the management of Rubicon Organics believes that the assumptions made, and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, changes in assumptions, new information or for any other reason except as required by law. 1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Selected Financial Information for details on the Adjusted EBITDA calculation.2 All retail data is sourced from Hifyre as at March 31, 2025 for current year and as at March 31, 2024 for prior year
Yahoo
28-05-2025
- Business
- Yahoo
Rubicon Organics Reports Q1 2025 Financial and Operating Results
Achieved net revenue of $12.4 million, representing a 39.2% increase compared to the same quarter in prior year Generated Adjusted EBITDA1 of $0.7 million, an improvement of $1.1 million year-over-year Removed conditions precedent for the purchase of the Hope Facility, advancing strategic expansion plans Completed a private placement for aggregate gross proceeds of $4.5 million VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ('Rubicon Organics' or the 'Company') is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, today reported its financial results for the three months ended March 31, 2025 ('Q1 2025'). All amounts are expressed in Canadian dollars. 'We're proud to deliver another strong quarter of revenue growth and profitability. Rubicon is cementing its leadership in premium organic cannabis through innovation, disciplined execution, and brand trust,' said Margaret Brodie, CEO. 'With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation.' "With 39% year-over-year revenue growth and positive Adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline,' said Glen Ibbott, Interim CFO. 'Our strong first quarter results, along with a robust balance sheet, and our recent capital raise, provide the foundation to support our expansion while maintaining financial flexibility.' Q1 2025 and Subsequent Highlights: Achieved net revenue of $12.4 million, a 39.2% increase from the comparative prior year quarter Adjusted EBITDA1 of $0.7 million Achieved national market share of 2.0%2 in flower and pre-rolls, 5.1%2 in premium flower and pre-rolls, 14.7%2 in resin vapes, #52 overall for edibles with 26.7%2 in premium edibles, and Wildflower continues to be the #12 topical brand in Canada at 26.6%2 Removed remaining conditions for the Hope Facility acquisition with expected close in the near term, adding approximately 4,500 kgs of annual premium quality production, a 40% increase to the Company's capacity, with revenue expected in the first half of 2026 and full capacity run rate achieved by the end of 2026. Completed a private placement for aggregate gross proceeds of $4.5 million Received certification of compliance with GACP standards and completed first shipment to Europe Won Standard Producer of the Year at Grow Up awards in May 2025 Named industry veteran Glen Ibbott as Interim Chief Financial Officer Who We Are Rubicon Organics is a Canadian leader in premium, certified organic cannabis. With a vertically integrated model and strong national distribution, the company is scaling a house of trusted, high-performing brands including Simply Bare™ Organics, 1964 Supply Co.™, Wildflower™, and Homestead Cannabis Supply™. The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q1 2025 revenue up 39% year-over-year and positive Adjusted EBITDA for the fourth consecutive quarter and for eight of the last nine quarters. The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the planned acquisition of the Hope Facility which will expand production capacity by over 40% and support future growth in both domestic and export markets. With proprietary genetics, award-winning products, and certifications enabling international distribution, Rubicon is positioned at the forefront of the premium cannabis segment. As the Canadian market rationalizes and global demand for high-quality cannabis increases, Rubicon's disciplined execution, brand equity, and consumer loyalty set it apart. The company is well-capitalized following a recent $4.5M financing and is on track for continued revenue and Adjusted EBITDA expansion. Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential. Where We Are Going: 2025 OutlookWith growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility and are in the trial stage of evaluating additional lighting at site. In order to increase our supply of premium flower, we are acquiring the Hope Facility to significantly expand our annual production capacity, adding an annual production capacity of 4,500 kg, representing more than a 40% increase compared with our current annual production capacity from the Delta Facility, bringing total annual production capacity to 15,500 kg of premium cannabis. On May 21, 2025, we announced the removal of all conditions precedent related to the purchase and sale agreement for the Hope Facility. This acquisition is expected to close in Q2 2025. Pending licensing timing expected sometime in the summer, we expect to be running at full capacity by the end of the year. While we plan to outlay just over $3 million in operating startup costs during 2025, we do not expect revenue contribution until 2026. Our 2024 net revenue growth was driven through strategic partnerships with co-manufacturers and contract growers and these arrangements are expected to provide up to 2,000 kgs of incremental biomass to our business in 2025. We plan to continue to collaborate with our trusted partners and explore additional partnerships as we strive to meet the growing demand for our high-quality premium are committed to the growing Canadian cannabis market and to being a trusted partner for our customers—including provincial distributors, retailers, and consumers. As the Canadian customers face increasing competition from international demand, we have seen many mainstream and premium licensed producers shifting their sales abroad. We see this as a prime opportunity to further strengthen our brand presence in Canada. With SKU rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space. At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them. Looking ahead, we anticipate a continued highly competitive retail landscape. However, Rubicon's strong brand recognition, consumer loyalty, high supplier ratings, and strategic positioning provide a solid foundation for long-term success in possess unique intellectual property in cannabis genetics, which we consider a critical asset in maintaining our position as a leading innovator within the industry. Our extensive genetics library is central to our strategy of delivering consistent, high-quality genetics and new product offerings for the premium and super-premium markets. We view this as a significant competitive advantage and plan to launch exciting new genetics throughout 2025. To date, we have launched BC Organic Pink Drip and BC Organic Sunset Runtz under the Simply Bare strong reputation in Canada has attracted an increasing number of inquiries from international medical cannabis buyers. The international cannabis market has experienced significant growth in recent years, with continued expansion anticipated. While the market is still in the early stages of adopting premium cannabis products, we aim to meet small amounts of the international demand with a test and learn strategy in 2025 making sure to meet our Canadian customer needs as a priority. The Company holds the necessary certifications for international exports and made its inaugural international test shipment in the first quarter of 2025, we are forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility (the 'Hope Costs'), driven by our ongoing expansion and strategic initiatives. While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved like-for-like Adjusted EBITDA will position us for long-term success and value creation. 2025 Results of Operations: Three months ended March 31, 2025$ March 31, 2024$ Net revenue 12,376,056 8,890,417 Production costs 2,901,783 2,692,692 Inventory expensed to cost of sales 5,368,642 3,737,334 Inventory written off or provided for 318,278 266,039 Gross profit before fair value adjustments 3,787,353 2,194,352 Gross profit % before fair value adjustments 31% 25% Fair value adjustments to cannabis plants, inventory sold, and other charges 439,650 164,252 Gross profit 4,227,003 2,358,604 Operating expenses 4,337,795 4,097,090 Profit / (loss) from operations (110,792 ) (1,738,486 ) Other expenses 211,272 153,856 Net profit / (loss) for the period (322,064 ) (1,892,342 ) Net profit / (loss) per share, basic (0.01 ) (0.03 ) Weighted average number of shares outstanding, basic 58,608,210 56,662,430 March 31, 2025 $ December 31, 2024$ Cash and cash equivalents 7,780,884 9,857,264 Accounts receivable 5,672,723 5,828,001 Inventories 12,377,580 10,735,739 Other current assets 4,269,347 4,230,818 Total current assets 30,100,534 30,651,822 Property, plant and equipment 22,869,365 23,493,973 Other non-current assets 2,447,643 2,465,526 Total assets 55,417,542 56,611,321 Accounts payable and accrued liabilities 8,083,309 9,263,231 Current portion of loans and borrowings 1,324,419 1,321,678 Other current liabilities 122,033 121,661 Total current liabilities 9,529,761 10,706,570 Non-current portion of loans and borrowings 8,297,436 8,478,439 Other non-current liabilities 6,151 24,151 Total liabilities 17,833,348 19,209,160 Total shareholders equity 37,584,194 37,402,161 Working capital 20,570,773 19,945,252 Three months ended March 31, 2025$ March 31, 2024$ Changes in non-cash working capital items (1,646,116 ) (423,346 ) Other operating activities 683,895 (435,811 ) Cash used in operating activities (962,221 ) (859,157 ) Purchase of property, plant and equipment (731,081 ) (384,004 ) Cash used in investing activities (731,081 ) (384,004 ) Principal and interest paid (355,869 ) (385,800 ) Other financing activities (24,801 ) (17,395 ) Cash used in financing activities (380,670 ) (403,195 ) Effect of exchange rate changes on cash (2,408 ) (16,699 ) Increase (decrease) in cash during the period (2,076,380 ) (1,663,055 ) Cash, beginning of period 9,857,264 9,784,190 Cash, end of period 7,780,884 8,121,135 Conference Call The Company will be hosting a conference call to discuss Q1 2025 results on Wednesday, May 28, 2025. Conference call details are as follows: Time: 7:00 AM PT / 10:00 AM ET Conference ID: 34244 Local dial-in: +1 (289) 514 5100 Toll Free N. America: +1 (800) 717 1738 Webcast: Rubicon Organics Q1 2025 Earnings Call RegistrationCONTACT INFORMATION Margaret BrodieCEOPhone: +1 (437) 929-1964Email: ir@ The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release. Non-GAAP Financial Measures This press release contains certain financial performance measures that are not recognized or defined under IFRS ('Non-GAAP Measures') including, but not limited to, 'Adjusted EBITDA'. As a result, this data may not be comparable to data presented by other companies. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company as well as its liquidity. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For more information, please refer to the 'Selected Financial Information' section in the MD&A for the year ended December 31, 2024, which is available on SEDAR+ at Adjusted EBITDA Below is the Company's quantitative reconciliation of Adjusted EBITDA calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three months ended March 31, 2025, March 31, 2024, and December 31, 2024. Three months ended March 31,2025 March 31, 2024 December 31,2024 $ $ $ Profit (loss) from operations (110,792 ) (1,738,486 ) 292,368 IFRS fair value accounting related to cannabis plants and inventory (439,650 ) (164,252 ) (54,271 ) (550,442 ) (1,902,737 ) 238,097 Depreciation and amortization 764,237 776,680 852,366 Share-based compensation expense 504,097 702,846 538,575 Adjusted EBITDA* 717,892 (423,212 ) 1,629,038 *Included in Adjusted EBITDA in the three months ended March 31, 2025, is $0.2 million of one-time costs incurred for the ERP implementation projectCautionary 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' goal of achieving industry leading profitability are "forward-looking statements". Forward-looking information can be identified by the use of words such as 'will' or variations of such word or statements that certain actions, events or results "will" 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 the impact on revenue of new products and brands entering the market, and the timing of achieve Adjusted EBITDA1 profitability and cashflow positive. 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 federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including 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; and those factors identified under the heading "Risk Factors" in Rubicon Organic's annual information form dated April 1, 2025 filed with Canadian provincial securities regulatory authorities. 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. We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about: optimizing yield, achieving revenue growth, increasing gross profit, operating cashflow and Adjusted EBITDA1 profitability. Even though the management of Rubicon Organics believes that the assumptions made, and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, changes in assumptions, new information or for any other reason except as required by law. 1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Selected Financial Information for details on the Adjusted EBITDA calculation.2 All retail data is sourced from Hifyre as at March 31, 2025 for current year and as at March 31, 2024 for prior yearError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
MediPharm Achieves Key Milestone Toward $4.5 Million Cash Sale of Hope Facility, On Track to Close in June
TORONTO, May 22, 2025 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) ("MediPharm" or the "Company"), a pharmaceutical company specialized in precision-based cannabinoids, is pleased to announce the removal of all conditions precedent, related to its previously-announced agreement (the 'Purchase Agreement') for the sale of MediPharm's facility in Hope, BC, ('Hope Facility') to Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) for $4.5 million in cash (the 'Transaction'). With these conditions now met, the $4.5 million sale of the Hope Facility remains on track to close in June 2025. The Transaction will bolster MediPharm's already strong cash position and virtually debt-free financial status. David Pidduck, CEO of MediPharm commented, 'The $4.5 million in cash proceeds from divesting non-core assets supports our roadmap to deliver long-term value for shareholders and partners, enabling continued focus on accelerating international growth and exploration of key acquisition opportunities.' The Hope Facility was acquired as part of the successful VIVO Cannabis Inc. acquisition in 2023, and the Company ceased all Hope Facility commercial activities in 2024, consolidating key operations at its other facilities. The consolidation of operations was all part of MediPharm's ongoing strategy to reduce operating and overhead costs and monetize redundant assets. The aggregate value of the Company's asset sales since 2022, including the Hope Facility, total approximately $14 million, all of which has contributed to reducing costs and boosting the Company's balance sheet. Since the second quarter of 2022, when implementation of this strategy began, to the first quarter of 2025, MediPharm has reduced operating and overhead costs by approximately $42 million dollars on an annualized basis. About MediPharm Labs Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets. In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America to hold a commercial-scale domestic Good Manufacturing Practices License for the extraction of multiple natural cannabinoids. This GMP license was the first step in the Company's current foreign drug manufacturing site registration with the US FDA. In 2023, MediPharm acquired VIVO Cannabis Inc., which expanded MediPharm's reach to medical patients in Canada via Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical Australia PTY Ltd. and Beacon Medical Germany GMBH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with Physician consultations for medical cannabis education and prescriptions. The Company carries out its operations in compliance with all applicable laws in the countries in which it operates. Investor Contact: MediPharm Labs Investor RelationsTelephone: +1 416.913.7425Email: investors@ Media Contact: John VincicOakstrom Advisors+1 (647) 402-6375john@ Cautionary Note Regarding Forward-Looking Information: This news release contains 'forward-looking information' and 'forward-looking statements' (collectively, 'forward-looking statements') within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as 'expects', or 'does not expect', 'is expected', 'anticipates' or 'does not anticipate', 'plans', 'budget', 'scheduled', 'forecasts', 'estimates', 'believes' or 'intends' or variations of such words and phrases or stating that certain actions, events or results 'may' or 'could', 'would', 'might' or 'will' be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things: timing for the closing of the Transaction, impacts of the Transaction to the Company's cash position and financial status, plans for long-term value for shareholders and partners, acceleration of international growth and acquisition opportunities, future reduction of the Company's costs, and future impacts of the Transaction to the Company's balance sheet. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs' continuous disclosure filings, available on the SEDAR+ website at There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change. 64552143.2
