Rubicon Organics Announces C$10,000,000 Secured Credit Facilities
Rubicon Organics has secured C$10,000,000 in credit facilities from Community Savings Credit Union and another lender. The facilities have a five-year term with a ten-year amortization period and carry a 6.75% annual interest rate. The credit is secured by first-ranking security interests in the company's present and after-acquired personal property. The funds will be used to repay a US$8,000,000 secured debenture owed to Green Island Investments , which matures on December 31, 2024.
Rubicon Organics ha ottenuto C$10.000.000 in linee di credito dalla Community Savings Credit Union e da un altro prestatore. Le linee di credito hanno un termine di cinque anni con un periodo di ammortamento di dieci anni e comportano un tasso di interesse annuale del 6,75%. Il credito è garantito da diritti di sicurezza di primo rango sui beni personali attuali e futuri dell'azienda. I fondi saranno utilizzati per rimborsare un'obbligazione garantita di US$8.000.000 dovuta a Green Island Investments, che scade il 31 dicembre 2024.
Rubicon Organics ha asegurado C$10.000.000 en facilidades de crédito de Community Savings Credit Union y otro prestamista. Las facilidades tienen un plazo de cinco años con un período de amortización de diez años y llevan un tasa de interés anual del 6,75%. El crédito está garantizado por derechos de seguridad de primer rango sobre los bienes personales presentes y futuros de la empresa. Los fondos se utilizarán para pagar un debente garantizado de US$8.000.000 adeudado a Green Island Investments, que vence el 31 de diciembre de 2024.
루비콘 오가닉스는 커뮤니티 세이빙스 신용 조합 및 다른 대출자에게서 C$10,000,000의 신용 시설을 확보했습니다. 이 시설들은 5년 만기로 10년 상환기간을 가지며, 연 이자율은 6.75%입니다. 이 신용은 회사의 현재 및 미래 자산에 대한 1순위 담보에 의해 보장됩니다. 자금은 2024년 12월 31일 만기인 Green Island Investments에게 상환해야 할 미화 8,000,000 달러의 보증부 채권을 상환하는 데 사용됩니다.
Rubicon Organics a obtenu C$10.000.000 en facilités de crédit de la Community Savings Credit Union et d'un autre prêteur. Les facilités ont un terme de cinq ans avec une période d'amortissement de dix ans et affichent un taux d'intérêt annuel de 6,75%. Le crédit est garanti par des droits de sécurité de premier rang sur les biens personnels présents et futurs de l'entreprise. Les fonds seront utilisés pour rembourser une obligation garantie de 8.000.000 USD due à Green Island Investments, qui arrive à échéance le 31 décembre 2024.
Rubicon Organics hat sich C$10.000.000 an Kreditlinien von der Community Savings Credit Union und einem anderen Kreditgeber gesichert. Die Kreditlinien haben eine Laufzeit von fünf Jahren mit einer zehnjährigen Amortisationszeit und haben einen jährlichen Zinssatz von 6,75%. Der Kredit ist durch erstklassige Sicherheiten an den derzeitigen und künftig erworbenen beweglichen Vermögenswerten des Unternehmens gesichert. Die Mittel werden verwendet, um eine gesicherte Anleihe in Höhe von US$8.000.000, die an Green Island Investments geschuldet wird und am 31. Dezember 2024 fällig ist, zurückzuzahlen.
- Secured new C$10,000,000 credit facilities with better terms
- Lower interest rate at 6.75% compared to previous financing
- Extended repayment timeline with 5-year term and 10-year amortization
- Taking on new debt to repay existing debt
- Company remains leveraged with significant debt obligations
VANCOUVER, British Columbia, Dec. 02, 2024 (GLOBE NEWSWIRE) -- 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, is pleased to announce that on November 28, 2024 it has entered into credit agreements (the “Credit Facilities”) pursuant to which it has borrowed an aggregate of C
The Credit Facilities are secured by, among others, first ranking security interests in all present and after-acquired personal property of the Company. The first ranking security interests rank pari passu as between the Lenders.
The Credit Facilities will be used by the Company to repay in full the US
"We are pleased to announce the establishment of our new Credit Facilities, which underscores our commitment to strengthening our financial position and supporting our strategic growth initiatives. Our new Credit Facilities enhance our liquidity and provide us with the flexibility to invest in key projects that will drive long-term value for our shareholders. We believe that this strategic move positions us well to navigate the evolving market landscape and capitalize on future opportunities," said Janis Risbin, CFO.
Mike Schilling, President and CEO, Community Savings Credit Union: “Community Savings is committed to supporting all our members in the Cannabis industry, large and small. We are delighted to partner with Rubicon on this milestone deal which will support their continued success.”
ABOUT RUBICON ORGANICS INC.
Rubicon Organics Inc. is the global brand leader in premium organic cannabis products. The Company is vertically integrated through its wholly owned subsidiary Rubicon Holdings Corp, a licensed producer. Rubicon Organics is focused on achieving industry leading profitability through its premium cannabis flower, product innovation and brand portfolio management, including three flagship brands: its super-premium brand Simply Bare™ Organic, its premium brand 1964 Supply Co.™, its cannabis wellness brand Wildflower™ in addition to the Company’s mainstream brand Homestead Cannabis Supply™.
The Company ensures the quality of its supply chain by cultivating, processing, branding and selling organic certified, sustainably produced, super-premium cannabis products from its state-of-the-art glass roofed facility located in Delta, BC, Canada.
CONTACT INFORMATION
Margaret Brodie
CEO
Phone: +1 (437) 929-1964
Email: ir@rubiconorganics.com
The TSX Venture Exchange, 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.
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 use of proceeds of the Credit Facilities. 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; the effect of capital market conditions and other factors on capital availability; the Company’s ability to attract and retain skilled staff; 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.
FAQ
What is the interest rate on Rubicon Organics (ROMJF) new credit facilities?
How much did Rubicon Organics (ROMJF) borrow in December 2024?
What will Rubicon Organics (ROMJF) use the new credit facilities for?
What is the term length of Rubicon Organics (ROMJF) new credit facilities?
