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:
| | 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:
CONTACT INFORMATION
Margaret Brodie
CEO
Phone: +1 (437) 929-1964
Email: ir@rubiconorganics.com
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 www.sedarplus.ca.
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 project
|
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
