Rubicon Organics Inc. Announces Pricing of Overnight Marketed Offering

Published: August 9, 2019

Rubicon Organics Inc. Announces Pricing of Overnight Marketed Offering

Rubicon Organics Inc. has priced its public offering of units of the Corporation. The Corporation has agreed with a syndicate of agents led by Desjardins Capital Markets and including Canaccord Genuity Corp., PI Financial Corp. and Mackie Research Capital Corporation, to sell 3,150,000 Units at a price of $2.70 per Unit for aggregate gross proceeds of $8,505,000.

Each Unit will consist of one common share of the Corporation and one Common Share purchase warrant. Each Warrant will entitle the holder thereof to purchase one Common Share at a price equal to $3.50 per Warrant Share for a period of 30 months following the closing of the Offering, subject to an accelerated expiry if the volume-weighted average price of the Common Shares on the Canadian Securities Exchange is equal to or greater than $3.80 per Common Share for 20 consecutive trading days.

Rubicon will shortly file an amended and restated preliminary short form prospectus with the securities commissions in each of the provinces of Canada (other than Quebec) amending and restating the preliminary short form prospectus filed on August 7, 2019 to reflect the terms of the Offering.

The Corporation will grant the Agents an Over-Allotment Option to purchase up to an additional 472,500 Units, exercisable in whole or in part at any time up to 30 days after and including the closing date of the Offering, which may be exercised for Common Shares, Warrants or a combination thereof.

The Corporation intends to use the proceeds from the Offering for the continued optimization of its Delta BC facility and general corporate and working capital purposes.

The Offering is expected to close on or about August 23, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the CSE.