A Delta cannabis greenhouse operation has announced a major business deal to strengthen its books.
Rubicon Organics Inc., which runs a 125,000-square-foot facility on 104th Street in East Ladner, announced that it has completed the sale of a 40,000-square-foot greenhouse in Ferndale, Washington for US$8.5 million to a group of real estate investors
Proceeds from the sale will strengthen the company’s balance sheet, providing working capital to ramp-up production and sales across Canada, according to a news release.
“The sale of the Washington greenhouse is an important step in focusing the company on our core strength of bringing super-premium certified organic cannabis to the Canadian market,” said Bryan Disher, chairman of the board.
“This transaction creates tremendous value for our shareholders by achieving a clean and timely exit from the U.S., while accelerating our timeline to profitability through focusing exclusively on our high-return Canadian operations.”
The company says it will also continue to sell its remaining U.S. assets, expecting to complete the dispositions of those in the coming months.
Rubicon specializes in organic cannabis at its Delta facility, saying it has significant benefits over non-organic cannabis including being higher in terpene and cannabinoid levels and richer in flavour and taste.
Noting it expects to produce 11,000 kilograms per year of “super-premium, certified organic cannabis”, the company points out it’s one of only two certified organic cannabis producers in the country