Rubicon Organics Inc. (ROMJF) reported its financial results for Q2 today. While gross and net revenue improved dramatically it still showed a net loss.

Q2 Financial Highlights (All financial information is in Canadian dollars (go here to convert into USD), unless otherwise noted, and is comparative to Q1)

• Net Revenue: increased by 118% to $992.0M
• Net Profit (Loss): reduced by 53% to $(1.8M)
• Loss/Share: $(0.4)
• Adj. EBITDA: improved by 17% to $(2.5M)
• Cash on Hand: $12.5M

Management Commentary

Jesse McConnell, Chief Executive Officer, had the following comments:

• “We are on track during this ramp up phase in our operations and have met our internal expectations.
  • We have established a solid platform for high quality production,
  • we anticipate significant revenue growth in the upcoming quarters as we continue to build our product inventory and sell through our newly established provincial channels. 
    • In particular, we have expanded our distribution channels across Canada from British Columbia to Ontario."

Outlook

The company:

• expects to begin distribution of its products in Germany beginning in 2021,
• expects to achieve positive EBITDA on a monthly basis by year-end 2020,
• expects to achieve monthly positive cash flow from operations in the first half of 2021,
• expects to refinance debt maturing in 2021 to a long-term mortgage financing facility at lower interest rates,
• expects to list the common shares and 3,150,000 warrants of the Company on the TSXV in September 2020.

Stock Performance

Rubicon is a constituent in the munKNEE Pot Stock Index of the 25 pure-play cannabis stocks that trade for at least US$1/share and it is one of the best performers UP 75% YTD and UP 14% so far this month.