British Columbia-based cannabis license holder Rubicon Organics borrowed 10 million Canadian dollars (roughly $7.1 million) in secured credit facilities to pay debt.
The credit facilities will be used to “repay in full” the $8 million in principal owed to Green Island Investments for a secured debenture that matures Dec. 31, according to a Monday news release.
“Our new Credit Facilities enhance our liquidity and provide us with the flexibility to invest in key projects that will drive long-term value for our shareholders,” Janis Risbin, chief financial officer of Rubicon Organics, said in a statement.
The credit facilities have a term of five years and an interest rate of 6.75%; the amended secured debenture with Green Island Investments carried an interest rate of 7.5%.
Community Savings Credit Union and another lender backed the credit facilities, according to the release.
“Community Savings is committed to supporting all our members in the Cannabis industry,” Community Savings Credit Union President and CEO Mike Schilling said in a statement.
He called the credit facilities a “milestone deal which will support (Rubicon’s) continued success.”
Rubicon’s cultivation and manufacturing operations are located in Delta, British Columbia.
In March, the company reported a loss of CA$1.1 million for its 2023 fiscal year, despite a modest profit of CA$889,166 in its fourth quarter ended Dec. 31, 2023.
Shares of Rubicon are traded on the TSX Venture exchange as ROMJ.
