E Rubicon Organics Q4 Financials: Net Revenue Increased But Net Loss Increased As Well

Rubicon Organics Inc. (ROMJF), a constituent in the munKNEE Pure-Play Pot Stock Index, announced its Q4, 2020 financial and operating results on Tuesday for the period ended December 31, 2020, as follows:

Q4 Financial Highlights 

(All results are presented in Canadian dollars and compared to the previous quarter.)

  • Net Revenue: increased 51% to $4.8M 
  • Net Loss: increased 16.8% to $(5.0)M
  • Adj. EBITDA: loss increased 14.8% to $(3.0)M
  • Cash on Hand: increased 50.5% to $12.1M
  • Working Capital: increased 354% to $4.2M 

Q4 Operational Highlights

  • Launched in Quebec with the Simply Bare™ Organic and the 1964™ brands and received first purchase orders for both flower and hash;
  • Launched BC Organic Apple Toffee in Simply Bare™ Organic, available in jar and pre-roll formats;
  • Signed an agreement with PAX LABS® to fill organic cannabis oil pods for the PAX® ERA™ and PAX® ERA Pro™ premium vaporizers;
  • Triggered the acceleration of 3.15 million warrants with an exercise price of $3.50, resulting in the exercise of 2.04 million warrants and gross proceeds of $7.1 million;
  • Amalgamated three Canadian subsidiaries which will allow for use of over $20 million in tax losses in the future; and
  • Announced intention to appoint Julie Lassonde to the Board of Directors once her security clearance is obtained from Health Canada.

Outlook

The company intends to continue:

  • maintaining pricing for its premium products,
  • remaining rigorous in the control of cash costs,
  • implementing efficiencies across its production process and
  • to continue to tailor its innovation pipeline to product categories with high consumer demand and premium margin potential.

Guidance

The Company currently expects:

  • to achieve positive adjusted EBITDA on a monthly basis by year-end 2020,
  • to achieve monthly positive cash flow from operations in the first half of 2021,
  • to generate significant operating leverage by maintaining moderate increases in production costs and operating expenses, with linear increases in inventory expensed to costs of sales relative to net revenue, but at a lower per unit cost, and
  • to refinance debt maturing in 2021 to a long-term mortgage financing facility, potentially with more favorable terms, and may seek other capital through equity, and other debt arrangements.
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