Rubicon Organics Inc (OTCMKTS:ROMJF) reported a growth of 51% QoQ to CAD 4.8 million in Q4 2020 revenues.
The CEO of Rubicon, Jesse McConnell, said the company focuses on manufacturing premium quality organic cannabis. He said the company is excited to report revenues of CAD 9.4 million in 2020, the first year of operation. Rubicon’s loss in Q4 2020 is CAD 5 million.
Expects to post profits
Rubicon expects to post profits in 2021 because of introducing innovative products and expanding the distribution. It is flush with cash to support organic growth. The company will improve shareholder value by considering strategic options.
In Q4 2020, the company introduced the 1964 and Simply Bare Organic brands and bagged orders for hash and flower.
Rubicon provides Organic Apple Toffee in pre-roll and jar formats.
In Q4 2020, the company improved its market share mainly in BC and Ontario.
Signs a pact with PAX LABS
Rubicon signed a deal with PAX LABS for filling the organic cannabis oil pods for PAX ERA Pro and PAX ERA premium vaporizers.
Rubicon raised capital of CAD 7.1 million by exercising 2.04 million warrants (each at CAD 3.50). The company integrated three subsidiaries in Canada. It allows using tax losses of more than CAD 20 million in the future.
Rubicon inducts Julie Lassonde into the director board. The appointment is subject to the clearance of Health Canada.
Developments after Q4 2020
Health Canada awarded an amended sales license paving the way for Rubicon to sell hash and concentrate products to the distributors and provinces. Rubicon raised capital of CAD 23 million through a bought deal offering.
Rubicon entered a pact with the Valens Company to offer extraction services. The company received purchase orders from the provincial distributors in Saskatchewan, British Columbia, Ontario, and Alberta to supply Wildflower CBD Cool Sticks and Wildflower CBD Relief Sticks.
The purchase orders in the winter of 2021 have dropped significantly from distributors in Alberta and Ontario. It is on the backdrop of several stores operating in the click and collects model.
Rubicon maintained firm pricing for its premium products despite the influence of external factors by using strict financial discipline and operational efficiencies.