#KahliBuds #MMJ #CBD #THC

Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) reported its revenue fell for the fourth quarter and rose for the full year ending December 31, 2023. In the quarter, net revenue fell 9.1% to C$9.9 million from last year’s revenue of C$10.9 million and declined 0.5% sequentially from the third quarter. The company blamed the decline on the industry’s weak consumer sentiment and price pressure.

On a positive note, Rubicon delivered a net profit during the fourth quarter of 2023 of C$662,532, compared to a net loss in the third quarter of 2023 of C$1,643,867. Rubicon said that the increase was primarily attributed to Fair value adjustments to cannabis plants, inventory sold, and inventory written off which changed by C$2,292,382, largely driven by the rebounding of wholesale cannabis prices during the fourth quarter.

Full-year results

For 2023, revenue increased by 13% to C$40.1 million from 2022’s revenue of C$35.5 million. The company trimmed its net loss for the year to C$1.8 million from last year’s net loss of C$3.8 million.

“2023 served as a cornerstone year for Rubicon. We’ve solidified our presence with established brands fueled by our renowned reputation for quality flower, now expanding into diverse product formats exemplified by our success of launching edibles under 1964 Supply Co. and Wildflower. Looking forward to 2024, we’re thrilled to unveil several exciting initiatives, including the highly anticipated launch of full spectrum extract (FSE) resin vapes under 1964 Supply Co. which I view as our next significant growth opportunity” said Margaret Brodie, CEO.

The company also managed to grow its cash balances by $1.5 million from C$8.3 million at the end of 2022 to C$9.8 million while reducing accounts payable and accrued liabilities by C$1 million. The company generated cash from operating activities of C$5,049,740.

CFO Janis Risbin added, “I am pleased to announce that Rubicon has attained its seventh consecutive quarter of positive Adjusted EBITDA and sixth consecutive quarter of positive operating cashflow. Despite the challenges faced in the latter half of 2023 due to competitive pricing pressures in the Canadian cannabis sector and broader negative macroeconomic factors affecting Canadian consumers, we are optimistic about the prospects in 2024. With Rubicon’s prominent position as a leading force in the premium cannabis market, I am enthusiastic about the opportunities that lie ahead.”

The Company currently has $8 million of debt outstanding secured against the Delta Facility which matures December 31, 2024. The company said it is in discussions with lenders upon maturity of the debt. Rubicon also said that included in its current liabilities is a debenture of C$10,259,562 that is repayable on December 31, 2024. Management is currently in discussions with the debenture holder and other lenders to extend the term of the existing agreement or to enter into a new loan agreement. The Company has been able to extend the existing loan facility in the past and management anticipates that a new financing package will be negotiated at the appropriate time.

Looking ahead

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