-- Delivered Q2 2025 net revenue of $15.0 million, representing a 24% 
      increase compared to the same quarter in prior year, and 2025 YTD net 
      revenue of $27.4 million, representing a 30% increase compared to the 
      same six months in prior year 
 
   -- Generated Adjusted EBITDA1 of $1.4 million in Q2 2025 and $2.1 million 
      for 2025 YTD 
 
   -- Completed purchase of the Hope Facility, increasing total future capacity 
      by 40% 
 
   -- Completed a private placement for aggregate gross proceeds of $4.5 
      million 
 
   -- 1964 Launched Premium All-in-One Resin Vapes, Expands Into New Segment 
      (July 2025) 

VANCOUVER, British Columbia, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ("Rubicon Organics" or the "Company") is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, reported its financial results for the three and six months ended June 30, 2025 ("Q2 2025"). All amounts are expressed in Canadian dollars.

"Our strong results reflect our relentless focus on quality across every aspect of our business. We're now seeing the established success of our 510-thread FSE resin vapes, which have been in market for a full year, alongside momentum from our premium genetics--underscoring the strength of our genetic strategy. Looking ahead, I'm excited about the potential of our newly launched all-in-one FSE resin vapes, upcoming genetic releases, and the commissioning of our Hope Facility to support continued, sustainable growth." said Margaret Brodie, CEO.

"We delivered a record-breaking quarter, achieving our highest-ever net revenue of $15.0 million, record gross profit, and a record profit from operations of $1.0 million. We also generated Adjusted EBITDA of $1.4 million and positive operating cash flow of $0.8 million. Our strong and consistent performance in the first half of the year reflects the strength of our operating model and our commitment to financial discipline. While we expect some one-time costs in the back half of the year as we invest in bringing the Hope Facility online, this is a strategic move to support long-term, sustainable value creation," said Glen Ibbott, CFO.

Q2 2025 and Subsequent Highlights:

   -- Net revenue: $15.0 million for Q2 2025 (24% increase year-over-year) and 
      $27.4 million for the six months ended June 30, 2025 (30% increase 
      year-over-year). 
 
   -- Adjusted EBITDA: $1.4 million for Q2 2025 and $2.1 million for the 
      six-month period. 
 
   -- Cash flow from operations: $0.8 million for Q2 2025 and $(0.2) million 
      for the six-month period. 
 
   -- For the three months ended, achieved national market share2 of 5.2% in 
      premium flower and pre-rolls, 15.1% in resin vapes, 26.2% premium edibles, 
      and #1 topical SKU. 
 
   -- For the six months ended, achieved national market share2 of 5.1% in 
      premium flower and pre-rolls, 14.6% in resin vapes, 26.3% premium edibles, 
      and #1 topical SKU. 
 
   -- Closed the acquisition of the Hope Facility, increasing annual production 
      capacity by more than 40%. 
 
   -- Completed a private placement for aggregate gross proceeds of $4.5 
      million. 
 
   -- Won Standard Producer of the Year at Grow Up awards in May 2025. 
 
   -- Named industry veteran Glen Ibbott as Interim Chief Financial Officer. 
 
   -- Launch of 1964 Supply Co.$(TM)$ All-in-One full spectrum extract resin 
      vapes. 

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(TM) Organics, 1964 Supply Co.(TM), Wildflower(TM), and Homestead Cannabis Supply(TM).

The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q2 2025 revenue up 30% year-over-year and positive Adjusted EBITDA for the fifth consecutive quarter and for nine of the last ten quarters.

The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the 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 $4.5 million 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.

To support the increased demand for premium flower, the Company acquired the Hope Facility, adding 4,500 kg of annual production capacity--a more than 40% increase over the Delta Facility's existing capacity--and bringing total annual production capacity to 15,500 kg of premium cannabis. The acquisition closed on June 5, 2025, and the Company is currently progressing through the licensing process, with approval expected by year-end. The Company now anticipates incurring between $1 - $2 million in start-up operating costs in 2025. However, no revenue contribution is expected until the first half of 2026.

In 2025, we expect to acquire up to 2,000 kgs of incremental biomass and supplement our manufacturing capacity through strategic partnerships with co-manufacturers and contract growers. 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

The Company's proprietary cannabis genetics represent a core strategic asset and a key differentiator in maintaining our leadership in innovation within the premium and super-premium segments of the Canadian market. Our extensive genetics library underpins our ability to deliver consistent, high-quality flower and supports ongoing product development across multiple formats.

In 2025, we are focused on expanding our genetic portfolio with several new launches under the Simply Bare(TM) Organic brand. Recent additions include BC Organic Pink Drip, BC Organic Sunset Runtz, and BC Organic Luv Affair, with BC Organic Black Zoap and BC Organic Tea Time #7 scheduled for release later in the year. These genetics are designed to enhance our product offering and strengthen our competitive position in the evolving premium cannabis market.

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 while 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 fiscal 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 Adjusted EBITDA (excluding acquisition-related and start up operational costs associated with the Hope Facility) will position us for long-term success and value creation.

Q2 2025 Results of Operations:

 
                      Three months ended            Six months ended 
 ----------------  -------------------------  ---------------------------- 
                    June 30,      June 30,      June 30,      June 30, 
                     2025 $        2024 $        2025 $        2024 $ 
 ----------------  -----------  ------------  ------------  ------------ 
Net revenue         14,984,317    12,105,697    27,360,373    20,996,114 
Production costs     2,924,857     2,931,952     5,826,640     5,624,644 
Inventory 
 expensed to cost 
 of sales            6,469,113     5,209,148    11,837,755     8,946,482 
Inventory written 
 off or provided 
 for                   460,064       312,964       778,342       579,003 
-----------------  -----------  ------------  ------------  ------------ 
Gross profit 
 before fair 
 value 
 adjustments         5,130,283     3,651,633     8,917,636     5,845,985 
Gross profit % 
 before fair 
 value 
 adjustments             34.2%         30.2%         32.6%         27.8% 
Fair value 
 adjustments to 
 cannabis plants, 
 inventory sold, 
 and other 
 charges               746,450       398,790     1,186,100       563,042 
Gross profit         5,876,733     4,050,423    10,103,736     6,409,027 
-----------------  -----------  ------------  ------------  ------------ 
Operating 
 expenses            4,899,617     3,931,857     9,237,412     8,028,946 
Profit (loss) 
 from operations       977,116       118,566       866,324   (1,619,919) 
Other expenses         203,874       572,731       415,147       726,587 
Net profit (loss) 
 for the period        773,242     (454,165)       451,177   (2,346,506) 
-----------------  -----------  ------------  ------------  ------------ 
Net profit (loss) 
 per share, 
 basic                    0.01        (0.01)          0.01        (0.04) 
-----------------  -----------  ------------  ------------  ------------ 
Weighted average 
 number of shares 
 outstanding, 
 basic              64,888,408    56,466,118    61,765,657    56,662,430 
-----------------  -----------  ------------  ------------  ------------ 
 
 
                                        June 30, 2025    December 31, 2024 
                                               $                 $ 
-------------------------------------  ----------------  ----------------- 
Cash and cash equivalents                     7,277,666          9,857,264 
Accounts receivable                           6,553,065          5,828,001 
Inventories                                  13,713,017         10,735,739 
Other current assets                          4,723,249          4,230,818 
Total current assets                         32,266,997         30,651,822 
 
Property, plant and equipment                27,332,592         23,493,973 
Other non-current assets                      2,429,761          2,465,526 
Total assets                                 60,645,835         56,611,321 
-------------------------------------  ----------------  ----------------- 
 
Accounts payable and accrued 
 liabilities                                  9,629,483          9,263,231 
Current portion of loans and 
 borrowings                                   1,325,426          1,321,678 
Other current liabilities                       111,292            121,661 
Total current liabilities                    11,066,201         10,706,570 
 
Non-current portion of loans and 
 borrowings                                   8,126,285          8,478,439 
Other non-current liabilities                         -             24,151 
Total liabilities                            19,192,486         19,209,160 
-------------------------------------  ----------------  ----------------- 
 
Total shareholders equity                    42,836,864         37,402,161 
Working capital                              21,200,796         19,945,252 
-------------------------------------  ----------------  ----------------- 
 
 
                        Three months ended         Six months ended 
                      ----------------------  -------------------------- 
                       June 30,    June 30,    June 30,      June 30, 
                          2025        2024        2025          2024 
                           $           $           $             $ 
 
Net profit (loss) 
 from continuing 
 operations               773,241  (454,164)      451,177  (2,346,506) 
Fair value 
 adjustments to 
 cannabis plants, 
 inventory sold and 
 inventory written 
 off                    (746,450)  (398,790)  (1,186,100)    (563,042) 
Depreciation and 
 amortization             835,434    831,949    1,599,671    1,608,629 
Share based 
 compensation             317,610    307,434      821,707    1,010,280 
Interest on loans         173,479    288,760      348,346      567,844 
Unrealized foreign 
 exchange loss              2,407    222,057        4,815      364,746 
Fair value gain on 
 Derivatives                   --     18,963           --    (261,554) 
Changes in non-cash 
 working capital 
 items                  (579,694)    234,202  (2,225,810)    (189,144) 
--------------------  -----------  ---------  -----------  ----------- 
Cash from (used in) 
 operating 
 activities               776,027  1,050,411    (186,194)      191,253 
--------------------  -----------  ---------  -----------  ----------- 
 
Purchase of 
 property, plant and 
 equipment            (5,078,144)  (313,668)  (5,809,224)    (697,672) 
--------------------  -----------  ---------  -----------  ----------- 
Cash (used in) 
 investing 
 activities           (5,078,144)  (313,668)  (5,809,224)    (697,672) 
--------------------  -----------  ---------  -----------  ----------- 
 
Proceeds from equity 
 financing              4,161,819         --    4,161,819           -- 
Repayment of loans 
 and borrowings         (180,696)         --    (360,188)           -- 
Interest paid           (163,933)         --    (340,311)    (385,800) 
Repayment of finance 
 lease                   (15,884)   (17,824)     (40,685)     (35,219) 
Settlement of Hedge            --    648,194           --      648,194 
--------------------  -----------  ---------  -----------  ----------- 
Cash provided by 
 financing 
 activities             3,801,306    630,370    3,420,635      227,175 
--------------------  -----------  ---------  -----------  ----------- 
 
Effect of exchange 
 rate changes on 
 cash                     (2,407)     13,747      (4,815)      (2,952) 
--------------------  -----------  ---------  -----------  ----------- 
 
Increase (decrease) 
 in cash during the 
 period                 (503,218)  1,380,860  (2,579,598)    (282,196) 
Cash, beginning of 
 period                 7,780,884  8,121,134    9,857,264    9,784,190 
--------------------  -----------  ---------  -----------  ----------- 
Cash, end of period     7,277,666  9,501,994    7,277,666    9,501,994 
--------------------  -----------  ---------  -----------  ----------- 
 

Conference Call

The Company will be hosting a conference call to discuss Q2 2025 results on Monday, August 18, 2025.

Conference call details are as follows:

 
Time:                                7:00 AM PT / 10:00 AM ET 
Conference ID:                                                        94368 
Local dial-in:                                            +1 (289) 514 5100 
Toll Free N. America:                                     +1 (800) 717 1738 
Webcast:                Rubicon Organics Q2 2025 Earnings Call Registration 
 

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 and six months ended June 30, 2025 and June 30, 2024.

 
                             For the three months      For the six months 
                                     ended                    ended 
                             June 30,    June 30,    June 30,     June 30, 
                               2025        2024         2025         2024 
Profit / (Loss) from 
 operations                    977,116     118,566    866,324    (1,619,919) 
IFRS fair value accounting 
 related to cannabis 
 plants and inventory        (746,450)   (398,790)  (1,186,100)    (563,042) 
Depreciation and 
 amortization                  835,434     831,949   1,599,671     1,608,629 
Share-based compensation 
 expense                       317,610     307,434    821,707      1,010,280 
                            ----------  ----------  -----------  ----------- 
Adjusted EBITDA              1,383,710     859,159   2,101,602       435,948 
 

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