Rubicon Organics Closes $3 Million Private Placement for Pacifica

Rubicon Organics Inc. announced on October 19, 2026 that it has closed a non-brokered private placement with Siwash Rock Investments, Inc., raising approximately $3.0 million in gross proceeds, with the net proceeds directed primarily to a lighting and greenhouse infrastructure upgrade at its Pacifica cultivation facility in Delta, British Columbia.

Under the placement, Siwash Rock Investments acquired 6,666,667 common shares of the company at a price of $0.45 per share. No finder’s fees or commissions were paid in connection with the transaction. The issued shares are subject to a statutory hold period of four months and one day following the date of issuance under applicable Canadian securities laws. Rubicon trades on the TSX Venture Exchange under the symbol ROMJ and on the OTCQX under ROMJF.

Lighting Project and Production Targets

Rubicon intends to use the net proceeds to upgrade cultivation lighting and related greenhouse infrastructure at Pacifica, a program it designated the Lighting Project, with the balance allocated to general working capital. The company expects the project to increase Pacifica’s annual production to 15,500 kilograms of cannabis, a 40% increase over stated capacity. Together with the Cascadia facility, annualized company capacity is expected to reach 20,000 kilograms by June 2027, grown in GACP-certified facilities. According to the company, that timeline moves the 20,000-kilogram target forward from a previous estimate by approximately one year.

“Demand for Rubicon’s premium-quality cannabis in Canada and international markets has consistently exceeded our supply capacity. This investment allows us to expand total output from our existing assets by 29%, serve more unmet demand, lower per-unit costs and improve gross margin,” said Margaret Brodie, CEO of Rubicon. Brodie said the company was pleased to welcome Ted Reid, citing his record of building and scaling companies and creating shareholder value, and said his capital and expertise would help accelerate Rubicon’s next stage of expansion.

Ted Reid, CEO of Siwash Rock Investments, Inc., said: “Rubicon is at an important inflection point. I am pleased to support the Company’s growth plan and contribute my experience as Rubicon’s team works to drive revenue growth and profitability.”

Facilities and Second-Quarter Results

Rubicon operates the 125,000-square-foot Pacifica hybrid greenhouse in Delta and the 47,500-square-foot Cascadia indoor facility in Hope, British Columbia, with a current combined annual production capacity of approximately 15,500 kilograms. The company’s brand portfolio includes Simply Bare Organics, 1964 Supply Co., Wildflower, and Homestead Cannabis Supply.

The placement follows Rubicon’s second-quarter 2026 financial results, reported on August 12, 2026, in which the company posted record net revenue of $18.5 million for the three months ended June 30, 2026, up 23% year over year and 35% sequentially. For the six months ended June 30, 2026, net revenue increased 18% year over year to $32.1 million. Adjusted EBITDA was $1.1 million for the quarter, an 18% decrease from the second quarter of 2025, which the company attributed to investments to scale the business ahead of expected revenue growth.

The company reported that it maintained the #1 premium licensed producer position in Canada during the quarter, with 6.8% market share, and held a 9.7% national share of the premium flower market, an increase of nearly 2% from the second quarter of 2025, citing Hifyre data. It also reported Wildflower as the #2 topical brand in Canada with 30.1% market share and the #1 topical SKU in the country, alongside national market shares of 8% and 5.8% in premium pre-rolls and vapes, respectively. According to the August release, the 1964 brand was recognized as Brand of the Year at both the 2026 High Buds Club Awards and the 2026 Grow Up Industry Awards.

Rubicon acquired Cascadia in 2025 and operationalized the facility on budget and on schedule, with approximately $0.5 million in initial revenue realized in the second quarter of 2026. The facility has received CUMCS and IMC-G.A.P. certifications, which the company said strengthen its readiness to supply regulated international medical cannabis markets. The company also reported that per-crop yields at Pacifica increased approximately 20% year over year in the first half of 2026, and that the 1964 Supply Co. brand launched in the U.K. medical cannabis market in April 2026, the brand’s first international commercial launch.

The placement remains subject to applicable regulatory approvals, including final acceptance by the TSX Venture Exchange.